Copy Trading Master’s Winning Strategies Review — Episode 63
Easy Copy, 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/LBA3D77455
Trading Style: Swing Trading
2. Trade Operation Recap
Utilizing full margin with 10x leverage on DYDX, this trade achieved a yield of +225.55%, entering at 1.002 USDT and exiting at 1.228 USDT. Please refer to the chart below:
3. Trade Review
3.1 Market Background
On October 10, the U.S. Bureau of Labor Statistics released data indicating that inflation reduction in the U.S. stalled in September, with both overall and core CPI figures surpassing expectations. The September CPI rose by 2.4% year-over-year, a slight slowdown from the previous 2.5% but exceeding the forecast of 2.3%, marking the lowest level since February 2021, mainly due to falling energy prices. Month-over-month, CPI increased by 0.2%, matching the prior month and surpassing the expected 0.1%. The core CPI, excluding volatile food and energy costs, rose 3.3% year-over-year, slightly above both the forecast and prior rate of 3.2%.
On October 17, the U.S. Census Bureau reported that retail sales rose by 0.4% in September month-over-month, exceeding the forecasted 0.3% and the previous value of 0.1%. However, retail sales growth year-over-year declined to 1.7%, the lowest since January. While the retail report does little to shift expectations for a 25-basis-point rate cut from the Federal Reserve next month, it further signals that the economy shows few signs of a downturn.
On the same day, JPMorgan released a research report showing that hedge fund flows strongly favored Republican-aligned investments, with Republican assets nearing a two-year high, while Democratic-aligned assets declined to multi-year lows. The Republican victory scenario has become one of Goldman Sachs’ top trades leading up to the election. Data shows that Goldman’s “Republican Victory Basket” hit a record high, while the “Democratic Victory Basket” dropped back to the levels seen during the Biden administration. As the U.S. election intensifies, the market appears to sense a subtle shift in sentiment, with “smart money” increasingly betting on a Trump victory.
3.2 Trade Analysis
Between October 5 and October 22, Bitcoin’s 4-hour chart showed a period of consolidation, followed by a strong upward trend, with prices fluctuating between $69,500 and $60,000, as illustrated in the chart below.
On October 10, the U.S. Bureau of Labor Statistics reported that inflation in September had stalled, with both overall and core CPI figures exceeding expectations.
Strong non-farm payroll data and declining inflation in September continued to weigh down expectations for aggressive interest rate cuts. This led to an extended decline in the cryptocurrency market.
On October 15, during the Asian trading session, geopolitical tensions in Northeast Asia showed signs of escalation. The South Korean government launched extensive military exercises, while North Korea demolished a road on its side near the 38th parallel. In the short term, the cryptocurrency market turned into a safe haven, with Bitcoin surging over $1,000 on the day.
By October 20, Bitcoin had settled around $68,500. On the same day, APE token prices soared following the announcement that APE would be used as the GAS token for their Layer 2 network. The APEChain mainnet also saw the emergence of a meme token, which experienced a sharp price increase in the short term. APE’s price surge led sidelined capital to chase other projects related to ETH Layer 2.
On the daily chart, DYDX is categorized as a “lagging” Layer 2 project, with characteristics similar to APE, which had long been neglected by the market. Check the chart below:
As APE’s price rapidly climbed, DYDX followed suit, rising to approximately $1. A “head and shoulders bottom” pattern appeared on the 4-hour chart, signaling a confirmed technical bottom. This marked a good opportunity to enter a long position.
Once DYDX was bought, the price quickly surged, later reaching a peak near $1.35 as the broader cryptocurrency market rebounded.
On October 21, Bitcoin made a sharp move upward but failed to break the $69,500 mark, causing its price to weaken. Meanwhile, APE rose to $1.75 before experiencing a pullback. This presented an opportunity to reduce DYDX long positions, which were partially closed at $1.27, $1.22, and $1.18.
3.3 Winning Strategies Summary
How to choose the best assets for swing trading?
Start by selecting assets with high liquidity and volatility. Strong liquidity ensures smoother transactions for larger capital amounts, while high volatility creates opportunities for clear trend movements.
Next, focus on assets you know well. In the crypto market, coins rise and fall dramatically on a daily basis. Sticking to assets you’re familiar with can help you respond more confidently and avoid rash decisions.
Finally, look for the leading players in trending sectors. Staying in tune with market hotspots and investing only in the focal points of these trends is a strategy shared by many successful investors.
Focusing on trending sectors allows investors to avoid unnecessary detours and can accelerate their growth in trading expertise. These sectors often drive market growth, and by seizing these trends, investors are more likely to see strong returns. Conversely, blindly following the crowd or jumping in and out at extreme highs and lows often leaves investors in a reactive position, vulnerable to the market’s unpredictable twists.
Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.
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