Copy Trading Master’s Winning Strategies Review — Episode 57
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
Shorted LINK with 10x leverage (cross mode), opening at 12.558 USDT, closing at 10.349 USDT, achieving a trade profit of +175.91%.
3. Trade Review
3.1 Market Background
On August 21st, the Federal Reserve released the minutes of its July meeting. During the monetary policy meeting held three weeks prior, Fed policymakers expressed growing confidence that inflation would continue to decline towards their 2% target. The majority anticipated that a rate cut might be appropriate in September, with some even suggesting that based on the inflation and labor market conditions, there was already justification for a cut in the previous month.
On August 23rd, Fed Chair Powell gave a clear signal that rate cuts would begin soon and could continue for the foreseeable future.
On September 5th, data from the ADP Research Institute, in collaboration with the Stanford Digital Economy Lab, showed that U.S. private sector employment grew by 99,000 jobs in August, the slowest pace since January 2021, well below the expected 145,000 jobs, with the previous figure of 122,000 also revised downwards.
On September 6th, the U.S. Bureau of Labor Statistics reported that non-farm payrolls grew by 142,000 in August, falling short of the expected 165,000, while the July figure was revised down from 114,000 to 89,000, and the June figure was revised down by 61,000.
According to the CME FedWatch tool, traders increased their expectations for a 50-basis-point rate cut by the Fed this month to 47.0%, while the probability of a 25-basis-point cut fell to 53%. Analysts believe that although the job growth numbers were disappointing, they are far from panic-inducing, but a 50-basis-point cut could send a signal of concern.
3.2 Trade Analysis
From August 1st to September 9th, Bitcoin’s 4-hour chart formed a “double top” pattern after a rally, followed by a continuous decline to $54,200, and is now in a narrow range of consolidation.
On August 21st, the Federal Reserve released the minutes from its July meeting. During the monetary policy meeting three weeks earlier, Fed policymakers expressed growing confidence that inflation would steadily decline toward the Fed’s 2% target. The majority of participants anticipated that a rate cut might be appropriate in September, with some even suggesting that based on inflation and labor market conditions, there was already justification for a cut last month.
On August 23rd, Fed Chair Jerome Powell gave a clear signal that rate cuts would begin soon and could potentially continue in the foreseeable future.
On August 26th, the 1-hour Bitcoin chart (as shown below) displayed two long upper shadow candlesticks, indicating a clear market top. This signaled an opportunity to consider shorting.
On August 26th, LINK surged quickly from $12.1 to around $12.7, with $12.5 being a previous high. After breaking above this level, LINK rapidly pulled back, showing insufficient upward momentum. A short position was opened around $12.55.
Subsequently, the cryptocurrency market experienced a broad pullback. On September 6th, the U.S. reported August non-farm payroll growth of 142,000, falling short of the expected 165,000. Additionally, July’s data was revised down from 114,000 to 89,000, and June’s figures were revised down by 61,000. After the data release, the crypto market accelerated its decline, with Bitcoin dropping to a low of around $52,600.
As LINK fell to $9.5, breaking through the $10 support level on the left, it became time to consider closing the short position. Later, LINK found support around $10, and although it dipped briefly below, it failed to break the $10 level convincingly. The entire short position was closed at $10.4, as shown in the chart below:
3.3 Winning Strategies Summary
When Bitcoin shows a clear trend reversal, most assets in the market tend to follow. Once the trend is confirmed, it is crucial to hold onto your positions firmly. When the trend accelerates again, either upward or downward, it is typically the final phase of the market move. When no new highs or lows occur, it is the right time to close positions.
Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.
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