Copy Trading Master’s Winning Strategies Review — Episode 17
Easy Follow, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: Online
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/?id=LBA3D77455
Trading Style: Swing Trading
2. Trade Operation Recap
Long ETH with 50x leverage on cross mode (medium-to-long term trading), opening at 2,130.14 USDT, closing at 2,217.55 USDT, yielding a profit of 205.18%. As shown below:
3. Trade Review
3.1 Market Background
On December 13th, following the FOMC meeting, the Federal Reserve announced a hold on rate hikes, adjusting the projected interest rate by the end of 2024 from 5.1% to 4.6%, signaling a “dovish” stance for the coming year. Fed Chair Powell, who had been trying to suppress market expectations of rate cuts, no longer resisted, stating that rate cuts were “clearly a topic of discussion.”
On December 18th, three Federal Reserve officials expressed confusion over the market’s early predictions of rate cuts for the next year. Fed officials voiced “hawkish” views, attempting to quell market speculation of significant rate cuts.
Despite recent comments by Fed officials cooling off aggressive rate cut expectations, Wall Street remains skeptical.
Economists at Bank of America have raised their expectations for the Fed’s rate cuts next year from 75 basis points to 100 basis points, citing a faster-than-anticipated decline in inflation. They predict four rate cuts by the Fed in March, June, September, and December, each by 25 basis points.
Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, believes the market expectation for a Fed rate cut in March might be premature. He expressed surprise at Powell’s dovish tone during the December meeting. For instance, he did not mention the Fed’s active fight against inflation.
3.2 Trade Analysis
From December 18th to December 19th, the hourly chart of Bitcoin showed a rapid rebound following a continuous decline, as below:
On the hourly chart, ETH fell after rising to around $2320. Due to the “hawkish” views of Fed officials on Monday, the crypto market experienced a second decline during the Asian trading hours.
When the ETH price fell to around $2120, near the December 11th low, a long position was opened to participate in the oversold rebound.
On December 18th, after the opening of the US stock market, it continued to surge, with Wall Street undeterred by the Fed’s “hawkish” stance. The crypto market followed suit with a significant rebound.
On December 19th, ETH broke through the $2200 mark, then stagnated, leading to the closing of the position. As shown below:
3.3 Winning Strategies Summary
In swing trading, it is important to pay attention to changes in fundamental drivers.
Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.
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