Copy Trading Master’s Winning Strategies Review — Episode 59
Easy Copy, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: @Onlooker
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader?id=LBA3D77490
Trading Style: Swing Trading
2. Trade Operation Recap
We employed a 10x leverage strategy in cross-margin mode to short TIA, entering at 6.417 USDT and closing the position at 5.491 USDT. This delivered a notable profit of +144.3% from just one trade, as shown in the image below.
3. Trade Review
3.1 Market Background
On September 11, the U.S. Bureau of Labor Statistics reported that August’s CPI increased by 2.5% year-over-year, exactly as expected. This was a significant drop from the previous 2.9% and marked the fifth straight month of slowing inflation, reaching the lowest level since February 2021. On a month-to-month basis, CPI rose 0.2%, again matching forecasts and last month’s data.
Then, on September 18 at 2:00 p.m. ET, the Federal Reserve announced a 50 basis point rate cut at its September meeting. The dot plot indicated another 50 basis point cut is likely by the end of the year, though opinions were split: 10 Fed officials expect at least 100 basis points of cuts in 2024, while 9 anticipate cuts of 75 basis points or less. For the first time since 2005, there was dissent within the Federal Reserve, with Governor Bowman favoring a more modest 25 basis point cut.
On September 19, Republican presidential candidate Donald Trump made headlines by visiting a New York restaurant known for accepting Bitcoin, making him the first former U.S. president to use cryptocurrency for a transaction.
3.2 Trade Analysis
From September 9 to September 23, Bitcoin’s 4-hour chart showed a steady rise, peaking at $64,600 before pulling back slightly, as seen in the picture below:
On September 11, the U.S. Bureau of Labor Statistics reported that the CPI for August rose 2.5% year-over-year, down from 2.9% in the previous month. This marked the fifth consecutive month of slowing inflation and the lowest level since February 2021. Month-over-month, CPI increased by 0.2%, matching expectations.
August’s U.S. employment data missed expectations, and inflation continued to ease, giving the Federal Reserve plenty of justification for rate cuts.
On September 18, the Fed announced a 50 basis point cut, though Governor Bowman dissented, preferring a smaller 25 basis point cut.
On September 19, Donald Trump made headlines by visiting a New York restaurant that accepts Bitcoin, becoming the first former U.S. president to use cryptocurrency for a transaction.
With the cryptocurrency market trending upward since early September and the Fed delivering its anticipated rate cut, we saw an opportunity to short altcoins that had surged too quickly.
On September 19, TIA’s daily chart showed a sharp increase, having already risen 50% from its recent low. With the previous high near $6.20 in sight, we initiated a short position.
On September 20–21, TIA fluctuated narrowly around $6. On September 22, TIA broke below its support level of $5.75 and continued to fall. Meanwhile, Bitcoin remained relatively stable without a significant drop. Our analysis suggested that TIA’s short-term rally was over, making it unsuitable for medium- or long-term holding. We decided to close our short position around $5.49.
After that, the cryptocurrency market experienced some fluctuations, and on September 23, TIA surged again, hitting a new high of $6.89.
3.3 Winning Strategies Summary
The first expected 50 basis point rate cut of 2024 came slightly ahead of market expectations. The market didn’t immediately retreat from its highs but continued to rebound. While some assets that had previously seen big gains started to pull back, Bitcoin remained stable, signaling the right time to close our short positions.
Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.
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