Copy Trading Master’s Winning Strategies Review — Episode 56
Easy Copy, 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
Short FTM with 20x leverage on cross mode, opening at 0.5157 USDT, closing at 0.4099 USDT, achieving a profit of +410.37%. As shown below:
3. Trade Review
3.1 Market Background
On August 21st, the minutes from the Federal Reserve’s July meeting were released. During the meeting, policymakers expressed greater confidence in inflation gradually returning to the Fed’s 2% target. The majority expected that a rate cut might be appropriate in September, with some members suggesting that conditions in the inflation and labor markets had already warranted a rate cut in the previous month.
On August 21st, the Bureau of Labor Statistics released revised employment data for non-farm payrolls. The report was delayed for over half an hour, forcing manual uploads. The preliminary revisions showed that from April 2023 to March 2024, non-farm payrolls were revised downward by 818,000, equating to an average reduction of 68,000 jobs per month. The final detailed revisions will be released in February 2025. Most economists had anticipated a downward revision, with some projecting a reduction of up to 1 million jobs.
On August 23rd, Fed Chair Powell gave a clear signal that rate cuts would begin soon and could continue into the foreseeable future.
3.2 Trade Analysis
From July 1 to September 2, the daily chart of Bitcoin continued to rise and formed an “double top”, then fell sharply to $49,000 and rebounded. It then rebounded and oscillated upwards to around $64,000 before experiencing a sustained pullback, as shown below:
On August 21st, the Federal Reserve released the minutes from its July meeting. During the monetary policy meeting held three weeks prior, Federal Reserve policymakers expressed greater confidence that inflation would continue to decline towards the Fed’s 2% target. The majority anticipated that a rate cut might be appropriate in September, with some even suggesting that, based on the current inflation and labor market conditions, there had already been justification for a rate cut last month.
After the release of the Federal Reserve’s July meeting minutes, traders began betting on a 50-basis point rate cut in September. However, on the same day, a delayed report revised down the total U.S. nonfarm employment from April 2023 to March 2024 by 818,000 jobs. The revised data indicates that actual job growth in the U.S. economy was much weaker than initially reported. This revision could alter expectations for economic growth. The labor market has always been a key indicator of economic health, and if job growth is weaker than expected, it could signal an increased risk of economic slowdown.
And then, media reports noted that the vote on FTX’s restructuring plan had concluded, but the market saw no significant buying interest, leading to weakened short-term confidence. Consequently, the overall cryptocurrency market began to decline.
On the 4-hour Bitcoin chart (as shown below), long upper shadows appeared on August 24th and August 26th. The market had clearly reached the top, prompting consideration for short positions.
On August 26th, FTM surged quickly from $0.454 to around $0.535, which was a prior high. After breaking this previous high, FTM quickly retraced, indicating insufficient upward momentum. A short position was then opened near $0.51.
The cryptocurrency market then experienced a significant decline. When FTM fell to $0.44, it hit the previous high formed by the initial strong bullish candlestick. At this point, the position was monitored closely for potential exit points. The price eventually found support around $0.4, and despite a brief dip, it could not break below this level. All FTM short positions were closed at this point, as shown below:
3.3 Winning Strategies Summary
Once a trend in the market becomes evident, first confirm the turning point in Bitcoin’s price movement. Then, select strong-performing assets and identify entry points using shorter timeframes. Once the market trend is confirmed, it is important to hold on to your positions firmly. When the clarity and smoothness of the trend diminish, and most assets begin to diverge in performance, it is time to consider closing your positions.
Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.
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