Copy Trading Master’s Winning Strategies Review — Episode 113

Easy Copy, Smart Trade! Discover the winning strategies of our popular traders.

1.Copy Trading Master’s Introduction

User Nickname: LBA2D56200

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA2D56200

Trading Style: Trading style: Medium- to short-term swing trading

2.Trade Operation Recap

15x leverage long on $PAXG, opened at 3739 USDT and closed at 4061 USDT, with a single trade ROI of +128.91%. As shown in the image below:

3.Trade Review

3.1 Market Background

1) On September 25, with less than a week before federal funds run out, the U.S. government shutdown crisis has sharply escalated. The temporary funding bill proposed by House Republicans excluded the healthcare subsidy provisions demanded by Democrats, leading to a deadlock in negotiations between the two parties.

Republicans advocate extending current funding for seven weeks to avoid a shutdown, while Democrats are pushing for hundreds of billions of dollars in additional healthcare spending. Senate Majority Leader Chuck Schumer stated that Democrats will take a tougher stance. Meanwhile, former Trump administration budget director Russ Vought threatened to use the shutdown as an opportunity to reduce the federal workforce, drawing strong backlash from Democrats.

Prediction market data from PolyMarket shows that the probability of a government shutdown has risen to 76%. According to Goldman Sachs, if the shutdown lasts one week, U.S. GDP growth for the quarter could decline by about 0.15 percentage points; if it continues for three weeks, the impact could expand to 0.45 percentage points.

If the shutdown takes effect on October 1, the U.S. Department of Labor and Bureau of Labor Statistics will suspend operations, delaying the release of key economic indicators such as nonfarm payrolls, CPI, and retail sales. This would complicate the Federal Reserve’s policy decisions. Analysts warn that this “data vacuum” could trigger market volatility and reduce the Fed’s flexibility to adjust policy at its late-October meeting.

3.2 Trade Analysis

In early September, after consolidating at high levels for more than four months, gold staged a strong breakout. The daily chart structure shows a clear uptrend in PAXG, resembling Bitcoin’s breakout from its consolidation zone in 2024. On the macro level, declining U.S. dollar credit and the rising risk of a U.S. government shutdown have continued to fuel safe-haven demand, driving strong buying interest in gold.

From a Fibonacci extension perspective, since breaking out of its range, PAXG had reached the 1.618 resistance level as of September 25. The next potential resistance zones lie at the 2.000 and 2.618 extensions. In the short-term structure, the price met resistance around $3,800 and pulled back, but strong buying support emerged near $3,720, leading to a rebound. Considering the current macroeconomic uncertainty, gold prices have the momentum to continue climbing and potentially break above the $4,000 level.

From a trading perspective, a long position was entered around $3,739 with a stop loss at $3,690. As buying momentum strengthened, gold continued its upward move, quickly breaking through the 2.000 Fibonacci extension and the key $4,000 psychological barrier amid growing expectations of a U.S. government shutdown. The first major resistance to watch is near $4,150. If the price experiences sharp fluctuations in that zone, partial profit-taking in stages may be considered to lock in gains and reduce risk.

Trading background as shown in the chart:

3.3 Winning Strategies Summary

Mastering Extension Zones: How to Use Fibonacci Extensions to Identify Take-Profit Targets in Breakout Trends

In trend trading, when price breaks above a previous high or below a previous low, it often enters an “uncharted territory,” where traditional ranges and support/resistance lose their reference value. At this stage, Fibonacci retracement and extension tools become crucial for estimating the potential continuation range of the move.

Understanding the logic behind Fibonacci tools not only helps traders identify potential target zones but also enables them to take profits rationally during accelerated trends — avoiding greed and missed opportunities.

I. Core Value of the Fibonacci Tool

· Measuring the “rhythm” of a trend Fibonacci tools reveal the natural rhythm of price movements through mathematical ratios. Whether it’s the depth of a pullback or the magnitude of an extension, market behavior tends to oscillate around these key ratios.

· Providing an objective take-profit framework When price reaches new highs or breaks new lows, Fibonacci extensions offer clear potential target zones instead of relying on subjective guesses.

· Multi-timeframe applicability Whether on daily or 4-hour charts, Fibonacci ratios serve as effective tools for identifying the rhythm of a trend, helping traders align signals across multiple timeframes.

II. Key Fibonacci Ratios and Definitions

1. Retracement Ratios — measure the depth of pullbacks within a trend:

• 0.382: Common support in strong trends
• 0.5: Neutral retracement area
• 0.618: Classic “golden retracement” zone

1. Extension Ratios — estimate potential targets after a breakout:

• 1.272: Initial short-term target
• 1.618: Golden extension level, often marking the end of a continuation move
• 2.0 / 2.618: Potential zones for euphoric or parabolic phases

III. Practical Application of Fibonacci Extensions in Breakouts

1. Define the reference swing In an uptrend, measure from the previous low to the high; in a downtrend, the opposite. After the breakout, use this swing to draw Fibonacci extensions. The 1.272–1.618 range often serves as the first profit-taking zone.
2. Extension-based take-profit strategy

• First breakout: Set initial take-profit around the 1.272–1.382 range.
• Accelerated trend: Scale out profits around 1.618–2.0 zones.
• Strong breakout with volume or momentum candles: Move main stop to 1.618 for trailing profit protection.

3.Multi-timeframe confirmation

• Daily chart: If the daily trend is strong, 4-hour extension targets are more likely to be achieved.
• 1-hour chart: Short-term patterns (flags, breakout retests) can help confirm potential continuation toward higher targets.

IV. Risk Management and Execution Principles

· Stop-loss and trailing stop

Always set a protective stop, usually below the breakout point or retest zone.

As price approaches 1.272, progressively trail your stop upward to lock in profits.

· Partial take-profit and position scaling

Since breakout moves have uncertain extensions, scaling out helps balance realized profits and trend participation:

• First target: 1.272 (take partial profits)
• Second target: 1.618 (capture the main impulse wave)
• Remaining position: Use trendlines or MA20/MA60 for dynamic exit.

· Avoid subjective forecasting

Fibonacci is a structural mapping tool — not a crystal ball.

When price reaches a key ratio zone, confirm with volume, momentum, and candlestick signals before assuming a reversal.

V. Trading Mindset and Discipline

· Structure before price

Define the swing and measurement logic first, then wait for price confirmation. Avoid drawing Fibonacci levels reactively during volatile swings — it distorts trend structure.

· Prioritize confluence

When Fibonacci extension targets overlap with historical supply/demand zones, moving averages, or trendline projections, take-profit signals become more reliable.

· Control rhythm and emotions

The essence of Fibonacci-based take-profit strategy is “knowing when to stop.” Taking profits too early limits potential gains; waiting too long invites reversals. Only by combining structural confirmation with disciplined execution can traders profit steadily in extended trends.

The beauty of Fibonacci lies in transforming “trend extensions” from chaotic guesswork into a measurable rhythm.

By applying Fibonacci extensions wisely in breakout markets, traders can:

• Quantify target zones and reduce emotional decision-making;

• Combine multi-timeframe confluence to improve win rates;

• Use partial profit-taking and dynamic risk control to maximize trend-following gains.

In the waves of a trend, Fibonacci ratios serve as the trader’s navigational scale — they don’t predict the future, but they help you capture profits with precision by mastering the rhythm of market extensions.

Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.