Copy Trading Master’s Winning Strategies Review — Episode 55
Easy Follow, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: BlingBling~
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader?id=LBA3D77565
Trading Style: Swing Trading
2. Trade Operation Recap
Long MATIC with 10x leverage on cross mode, opening at 0.4197 USDT, closing at 0.5223 USDT, achieving a profit of +244.46%. As shown below:
3. Trade Review
3.1 Market Background
On Thursday, August 8th, the U.S. Department of Labor reported that the initial jobless claims for the week ending August 3rd stood at 233,000, lower than the expected 240,000 and the previous value of 249,000, marking the largest weekly drop in a year.
On August 14th, the U.S. Bureau of Labor Statistics released data showing that the July CPI increased by 2.9% year-on-year, lower than both the expected and previous value of 3%. The core CPI in July declined for the fourth consecutive month, hitting the lowest growth rate since early 2021, which could further pave the way for a 25-basis-point rate cut by the Federal Reserve in September.
On August 21st, the minutes of the Federal Reserve’s July meeting were released. At the meeting three weeks prior, Fed policymakers expressed greater confidence that inflation would continue to fall back to the Fed’s 2% target. The majority anticipated that September might be an appropriate time to cut rates, with some even suggesting that based on inflation and employment conditions, there was already a case for a rate cut last month.
On August 23rd, Federal Reserve Chair Jerome Powell sent a clear signal that rate cuts would begin soon and could continue into the foreseeable future.
The “disappointing” July employment data in the U.S. caused panic, leading to a sharp short-term drop in the U.S. stock market. However, market sentiment was later soothed by Japanese central bank officials and American economists, leading to a subsequent market rebound. The release of the Federal Reserve’s July meeting minutes further fueled rate cut expectations.
3.2 Trade Analysis
From August 3rd to August 26th, Bitcoin’s 4-hour chart showed a continuous downtrend followed by a rebound and rally. As shown below:
On Friday, August 2nd, U.S. nonfarm payrolls for July dropped sharply from 179,000 to 114,000, significantly missing the expected 175,000. The unemployment rate rose to 4.3%, the highest level in three years.
On August 14th, the U.S. Bureau of Labor Statistics released data showing that July’s CPI was up 2.9% year-on-year, lower than the expected and previous figure of 3%. The core CPI for July declined for the fourth consecutive month, marking the slowest growth since early 2021, possibly setting the stage for a 25-basis-point rate cut by the Federal Reserve in September. This triggered a rapid rebound in the cryptocurrency market.
On August 21st, the minutes from the Federal Reserve’s July meeting were released, revealing that Fed policymakers were increasingly confident that inflation would continue to decline towards the 2% target. The majority anticipated that a rate cut might be appropriate in September, with some even arguing that the conditions for a rate cut were already present in the previous month.
At the beginning of August, the Bank of Japan unexpectedly raised interest rates, followed by the release of significantly weaker-than-expected U.S. July employment data. These macroeconomic developments led to panic in the U.S. stock market, resulting in a substantial decline. However, as U.S. inflation data continued to recede and the Fed’s monetary policy meeting minutes indicated a clear inclination towards rate cuts, the cryptocurrency market experienced a renewed rally.
On August 19th during the Asian trading session, Bitcoin rapidly fell from $60,000 to around $58,400, and further down to near $57,750. In the 1-hour chart (as shown above), BTC prices fell from $60,000 to around $58,000, finding strong support.
On August 19th, MATIC quickly dropped from $0.417 to around $0.408, then began a rebound. At the same time, Bitcoin prices continued to hover around $58,000. MATIC showed resilience by rising in price. Considering that Bitcoin had already dropped $2,000 for the day, it was likely to see a rebound. After MATIC’s subsequent rise, a long position was opened.
As the market rebounded, prices gradually increased. On August 25th, MATIC broke through the previous high of $0.55, peaking at $0.58, before beginning a rapid decline. On August 26th, Bitcoin surged sharply, reaching a high of $65,000, before a swift correction occurred. MATIC was exited at this point. As shown below:
3.3 Winning Strategies Summary
Since August, the U.S. financial markets have experienced significant fluctuations, with the cryptocurrency market also entering a highly volatile phase.
In choppy markets, it’s generally preferable to focus on short-term swing trades, buying low and selling high. When a trending market emerges, certain strong assets tend to lead the rally and show resilience during broader market pullbacks. Once the market stabilizes and begins to rise, these resilient assets often rally quickly, becoming the leading gainers.
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