Copy Trading Master’s Winning Strategies Review — Episode 52
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
Short ETH with 50x leverage on cross mode, opening at 2,530.26 USDT, closing at 2,472.57 USDT, achieving a profit of +74.47%.
3. Trade Review
3.1 Market Background
On July 23rd, according to Arkham data, the Mt.Gox address starting with “18vjn” transferred 42,587 BTC to an address starting with “15yp” 13 minutes ago, valued at approximately $2.85 billion. The Mt.Gox BTC distribution process involves five exchanges: Bitbank, SBI VC Trade, Kraken, Bitstamp, and BitGo. The specific process involves transferring the BTC to be distributed from the Mt.Gox address to the corresponding exchange, where the distribution will then be distributed by the exchange.
On Sunday, July 28th, during the 2024 Nashville Bitcoin Conference, former U.S. President Donald Trump delivered a speech outlining a series of policies and plans aimed at establishing the United States as a global cryptocurrency hub.
On Friday, August 2nd, U.S. non-farm payrolls for July showed a significant drop from the previous 179,000 to 114,000, far below the expected 175,000. The unemployment rate rose to 4.3%, the highest level in three years, triggering the Sam Rule, a recession indicator with a 100% accuracy rate.
The weak non-farm employment report for July increased the risk of a hard landing for the U.S. economy, sparking large-scale risk aversion. The market now expects the Federal Reserve to carry out the equivalent of four 25 basis point rate cuts over its remaining three meetings this year. There is growing sentiment that the Fed’s rate cuts may come too late.
3.2 Trade Analysis
From July 29th to August 7th, Bitcoin’s 1-hour chart shows a rebound after consecutive declines, as depicted below:
On July 23rd, as Arkham data reported, Mt.Gox transferred 42,587 BTC from the “18vjn” address to the “15yp” address. The news of this transfer quickly led to a sharp decline in the cryptocurrency market.
On Sunday, July 28th, at the 2024 Nashville Bitcoin Conference, former U.S. President Donald Trump outlined his vision to transform the United States into a global cryptocurrency hub. Trump’s participation in the cryptocurrency conference further pushed BTC to around $70,000. Following this, the cryptocurrency market gradually retreated.
On July 31st, the Bank of Japan announced its latest rate decision, raising rates by 15 basis points, setting the policy rate at 0.15%-0.25%. The decision was passed by a 7–2 vote, despite market expectations that rates would remain unchanged.
On Friday, August 2nd, U.S. non-farm payrolls for July plummeted from the previous 179,000 to 114,000, significantly below the expected 175,000, with the unemployment rate rising to 4.3%, the highest level in three years.
The Bank of Japan’s unexpected rate hike put pressure on international arbitrage trading. Following this, the disappointing U.S. employment data further exacerbated the situation. These macroeconomic shifts triggered panic in the U.S. stock market, leading to a sharp decline in financial markets.
On August 7th, after a pullback from its high, Ethereum began to rebound. On the 1-hour chart, ETH prices were consolidating between $2,414 and $2,550. At this time, consider opening a position against the upper pressure level and shorting ETH.
As the overall market retreated, prices gradually declined. ETH showed signs of exhaustion after a sharp drop to $2,500, leading to the closing of positions, as shown below:
3.3 Winning Strategies Summary
Since August, the U.S. financial markets have experienced significant declines, heavily impacting the cryptocurrency market. The shock from market and macroeconomic changes has severely tested investors’ resolve.
Market reactions to events are not always rational. As long as markets exist, investments will go through bull and bear cycles, with asset bubbles and price crashes. Investors, being human, are more likely to make decisions based on emotional preferences rather than careful consideration. Although most investors understand the principle of “buy low, sell high,” many fail to put it into practice because they fear short-term losses more than missing out on potential gains, even if the eventual returns could be the same.
Discipline is crucial for dealing with uncertainty, but it is easier said than done.
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