Copy Trading Master’s Winning Strategies Review — Episode 47
Easy Follow, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: Wallis
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader?id=LBA3D77414
Trading Style: Swing Trading
2. Trade Operation Recap
Short FTM with 10x leverage, opening at 0.5966 USDT, closing at 0.4976 USDT, achieving a profit of +166.07%. As shown below:
3. Trade Review
3.1 Market Background
On June 24th, new developments emerged in the Mt.Gox case. The Mt.Gox compensation trustee announced preparations to repay in BTC and BCH. These preparations are now complete, and the trustee will begin repayments to cryptocurrency exchanges that have completed the necessary information exchange and confirmation at the appropriate time, starting in early July 2024.
On June 25th, Federal Reserve Governor Bowman spoke about monetary policy, stating that no rate cuts are expected in 2024, potentially delaying any cuts until 2025.
On June 27th, sources reported that due to the “very minor” changes in the last round of S-1 amendments, the SEC could “at any time” notify issuers of their fund’s launch dates, implying that issuers should not expect any further comments from the SEC. The launch date for the Ethereum spot ETF is thus entirely in the SEC’s hands, allowing for flexibility in timing.
Also on June 27th, U.S. presidential candidates Trump and Biden held their first debate of the election season at 9 PM EST. The Associated Press summarized the first half-hour of the debate, noting Biden’s hoarse and disorganized responses and Trump’s misleading statements on topics such as the economy, abortion, and NATO spending, with both candidates engaging in fierce personal attacks.
3.2 Trade Analysis
From June 13th to July 4th, the Bitcoin 4-hour chart showed high volatility with declines and a failed rebound attempt, followed by a rapid fall. See image below:
On June 27th, asset management company VanEck applied to register a Solana (SOL) exchange-traded fund (ETF), marking the first such registration in the U.S. SOL token’s 24-hour increase quickly rose to 8%.
On June 28th, Galaxy Research Vice President Charles Yu projected that if the Ethereum spot ETF were to trade, the inflow of funds could conservatively reach 20% of the inflow seen by the Bitcoin ETF in its first five months of trading, potentially totaling between $3 billion and $7.5 billion.
As bearish news continued to emerge, the cryptocurrency market began to show resilience. A bullish breakout formed in the Bitcoin 4-hour chart, reviving market sentiment.
On July 1st, FTM followed the market rebound but struggled to sustain above $0.60. On the 1-hour chart, resistance was evident at $0.62 on June 25th, which suppressed the rebound in July.
On the same day, as FTM failed to breach $0.60 and had already risen substantially in the short term, a short position was considered near the previous resistance level. FTM was a good short candidate around $0.60.
From July 1st to July 2nd, FTM price oscillated without clear direction, and the stop-loss was not triggered. On July 3rd, the cryptocurrency market began to slowly decline, and FTM broke below the previous two days’ consolidation, prompting the continuation of the short position.
Subsequently, the July 3rd release of the Fed’s June meeting minutes indicated that the progress in reducing inflation had been slower than expected since December last year. The Fed officials emphasized that rate cuts would be inappropriate unless they had more confidence in inflation consistently falling to the Fed’s target. Notable financial journalist Nick Timiraos titled his article “Fed Officials Signal No Rush to Cut Rates.”
On July 4th, U.S. financial markets were closed. During Asian and European trading hours, the cryptocurrency market experienced a rapid decline. Bitcoin fell below $60,000, further dropping to $57,000, sparking panic selling.
Considering the upcoming “U.S. June employment data” release on July 5th, which was expected to cause significant market volatility, and with FTM’s price already near the relative low of June 18th, the position was closed to lock in profits. As shown below:
3.3 Winning Strategies Summary
Recently, the market has been weak, with major cryptocurrencies slowly declining and market confidence low. On July 1st, the cryptocurrency market started to rebound but was soon invalidated, leading to a sharp decline again on July 3rd.
In swing trading, while following the trend is essential, predicting the extent of trend fluctuations is challenging. Only by adhering to strict stop-loss and timely profit-taking can one remain undefeated.
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