Copy Trading Master’s Winning Strategies Review — Episode 82

Easy Copy, Smart Trade! Discover the winning strategies of our popular traders.

1. Copy Trading Master’s Introduction

User Nickname: Monkey

Trader Profile: https://www.lbank.com/copy-trading/lead-trader/LBA3D77398

Trading Style: Medium to Short-Term Swing Trading

2. Trade Operation Recap

Full Position 25x Leverage Long on $ENA, Entry Price 0.3898 USDT, Exit Price 0.4701 USDT, Single Trade ROE +515.01%, as shown in the chart below:

3. Trade Review

3.1 Market Background

1) On February 21, 2025, cryptocurrency exchange Bybit suffered a massive hacking attack, with analysts estimating that nearly $1.5 billion in tokens were stolen, potentially making it the largest theft in crypto history.

Bybit President Zhou Ben posted on social media platform X, stating that hackers successfully breached an offline Ethereum (ETH) wallet. On-chain analyst ZachXBT wrote on Telegram that approximately $1.46 billion in assets flowed out of the wallet through a series of suspicious transactions.

Blockchain analytics firm Arkham Intelligence confirmed that around $1.4 billion had been siphoned off, posting on X: “These funds have started moving to new addresses and are beginning to be sold off.”

Blockchain security firm Elliptic classified this attack as “the largest crypto theft in history,” surpassing the $611 million hack of Poly Network in 2021.

Halborn co-founder and executive chairman Rob Behnke stated that the impact of this incident could extend beyond the crypto industry, possibly becoming “one of the largest cybersecurity incidents in history.”

Researchers suspect the attack may be linked to North Korean hacker groups, and investigations are still ongoing.

2) On February 24, 2025, crypto market maker Wintermute withdrew $38.2 million worth of SOL from an exchange, with 11.2 million SOL set to be unlocked and enter circulation on March 1. The price of SOL has recently been under pressure, dropping more than 7.5% in the past 24 hours to a near three-month low of $155.

Crypto analyst Artchick.eth commented, “Over the next three months, more than 15 million SOL (about $2.5 billion) will enter circulation, with most of it acquired through the FTX auction by institutions such as Galaxy Digital, Pantera Capital, and Figure at $64 per SOL. Many VCs are still sitting on substantial profits.”

Trader RunnerXBT noted, “Galaxy Digital, Pantera, and Figure hold unrealized profits of $3 billion, $1 billion, and $150 million in SOL, respectively. The market speculates that these institutions may sell their holdings. Additionally, fears have been heightened by the LIBRA meme coin scam backed by Argentine President Javier Milei.”

3) On February 28, 2025, Coindesk analyst Omkar Godbole reported that Bitcoin (BTC) fell below its 200-day SMA moving average on Friday, recording a 16% weekly decline. Amid renewed concerns over U.S. tariffs, increased demand for the U.S. dollar led Bitcoin’s price to briefly dip below $80,000 for the first time since November 10.

U.S. President Donald Trump announced on Thursday that he plans to impose tariffs on Canada and Mexico starting March 4, while also doubling the 10% general tariff on Chinese imports. Dutch banking giant ING stated in a client report, “We expect U.S. tariffs to come back into focus and drive continued strength in the U.S. dollar.” The U.S. Dollar Index (DXY) climbed to 107.30, extending its rebound from Wednesday’s low of 106.15.

3.2 Trade Analysis

On the 4-hour candlestick chart from February 24 to February 28, 2025, $ENA dipped to around $0.36 on February 25 before rebounding sharply. Despite the broader market downturn led by BTC in the following days, $ENA never revisited its February 25 low, demonstrating relative resilience against the decline. Overall, the bearish sentiment triggered by large unlocks appears to have been mostly priced in, and the focus now shifts to potential bullish setups once BTC stabilizes. Trading background as shown in the chart:

1) On the afternoon of February 28, BTC found support around $78,000 before rebounding sharply, while $ENAdemonstrated relative resilience amid the overall market downturn, consolidating within the $0.383 — $0.396 range.

On the 1-hour timeframe, $ENA exhibited a clear bullish divergence, forming a stabilization pattern near a key support level, signaling a potential bottoming out. A long position in this area, with a stop-loss near the previous low and a take-profit near the overhead resistance, offers a high probability setup with a favorable risk-reward ratio, as shown in the chart below.

2) In the early hours of March 3, driven by bullish news from Trump, the crypto market saw a collective surge, and the position was successfully closed near the key resistance level, as shown in the chart below.

3.3 Winning Strategies Summary

Setting Take-Profit and Stop-Loss in Trading & Managing Risk-Reward Ratio

In trading, setting take-profit (TP) and stop-loss (SL) levels, along with managing the risk-reward ratio, is crucial. A well-structured TP/SL strategy not only helps mitigate risk but also enables traders to achieve consistent profitability amid market fluctuations. Compared to trading based purely on intuition or emotions, a scientific and systematic risk management approach enhances the stability of a trading system and ensures long-term profitability. This article will explore the fundamental concepts of TP/SL, common methods of setting these levels, key principles of risk-reward management, and practical strategies for implementing them effectively in real-world trading to optimize performance.

1) Basic Concepts of Take-Profit and Stop-Loss

Take-Profit (TP) refers to closing a position when the price reaches a predetermined target to lock in profits. A well-defined TP level allows traders to secure gains before a market reversal, preventing excessive greed that could lead to giving back profits.

Stop-Loss (SL) is designed to limit losses by automatically closing a position when the price hits a predefined loss threshold. A properly set SL helps protect capital, prevents significant losses from a single trade, and enhances the stability of a trading system.

2) Common Methods for Setting Take-Profit and Stop-Loss

There are various ways to determine TP and SL levels, depending on market conditions and trading strategies. Below are some of the most commonly used methods:

1. Take-Profit and Stop-Loss Based on Technical Analysis

Technical analysis helps traders identify key support and resistance levels to set optimal TP and SL points.

• Support and Resistance-Based TP/SL: In trend trading, SL can be placed beyond key support/resistance levels, such as near recent pullback highs or lows, to prevent premature stop-outs from minor fluctuations before the trend resumes.
• Moving Average Stop-Loss: If the price breaks below key moving averages (e.g., 50-day or 200-day MA), it may signal a trend reversal, making it a suitable point for SL placement.
• Chart Pattern Stop-Loss: For formations like head and shoulders, double tops, or double bottoms, SL and TP can be set based on pattern structures. For example, after a double-top neckline breakdown, an SL can be placed above the neckline, while a double-bottom breakout can serve as a TP target.

2. Take-Profit and Stop-Loss Based on Volatility

Market volatility impacts TP/SL settings, requiring adjustments based on price fluctuations.

• ATR (Average True Range) Stop-Loss: ATR measures market volatility, allowing traders to set dynamic SL levels. A common strategy is setting SL at 1.5–2 times the ATR to accommodate normal price swings.
• Fixed Pip Stop-Loss: In highly liquid markets, traders may use fixed pip-based SL settings, such as 30–50 pips in forex trading.

3. Take-Profit and Stop-Loss Based on Timeframes

Different trading timeframes require different TP/SL strategies.

• Short-Term Trading (e.g., 1-hour, 15-minute charts): SL is typically placed near recent support/resistance levels, with TP targets set at 1–2 times the SL range.
• Swing Trading (e.g., 4-hour charts): SL is set near larger support/resistance zones, often incorporating trendlines or moving averages. TP can target previous highs/lows.
• Long-Term Trading (Daily Chart and Above): SL is wider and often based on long-term trendlines or major market structures, while TP can be determined through fundamental analysis or long-term trend projections.

3) Principles of Risk-Reward Ratio Management

The Risk-Reward Ratio (RRR) represents the ratio of expected profit to expected loss in a single trade and is a key metric for evaluating the quality of a trading strategy.

1. What Is a Reasonable Risk-Reward Ratio?

In general, traders are advised to maintain a minimum RRR of 1:2, meaning the profit target should be at least twice the stop-loss amount to ensure long-term profitability. For example:

• If a trader sets a stop-loss of $50, the take-profit target should be at least $100 (RRR = 1:2).
• If the RRR is 1:3, then the take-profit should be three times the stop-loss, meaning $150 profit for a $50 stop-loss.

2. Relationship Between Risk-Reward Ratio and Win Rate

The Risk-Reward Ratio (RRR) and win rate are fundamental components of a trading system, and their relationship is as follows:

• A high RRR (e.g., 1:3) can tolerate a lower win rate. For example, even with a 40% win rate, a 1:3 RRR can still result in profitability.
• A low RRR (e.g., 1:1) requires a higher win rate (e.g., 70% or more) to remain profitable.

Traders can adjust their take-profit and stop-loss ratios to optimize their win rate and overall profitability.

4) Practical Application of Take-Profit, Stop-Loss, and Risk-Reward Management

To effectively apply take-profit (TP), stop-loss (SL), and risk-reward ratio (RRR) management in trading, traders should follow these strategies:

1. Adjust TP/SL Based on Market Conditions

• In trending markets, the take-profit target can be widened to maximize potential profits.
• In range-bound (sideways) markets, take-profit should be smaller, and stop-loss should be adjusted dynamically to follow market fluctuations.

2. Dynamic Take-Profit Adjustments

• Trailing Stop (TSL): As the market moves favorably, stop-loss should be adjusted upward/downward to secure profits. For example, if the price rises by 2%, the stop-loss moves up by 1% to lock in gains.
• Partial Take-Profit: When the price approaches the profit target, a portion of the position can be closed to lock in some gains, while the remaining position is held for further profit potential.

3. Using Risk Control Models

• Risk per trade should not exceed 2% of account capital to prevent large drawdowns from consecutive losses.
• Using indicators like ATR (Average True Range) can help dynamically adjust TP/SL levels to adapt to market volatility.

5) Conclusion

Proper take-profit (TP) and stop-loss (SL) settings, along with risk-reward ratio (RRR) management, are key to successful trading. Traders should choose appropriate TP/SL strategies based on technical analysis, market volatility, and timeframes, ensuring that the RRR remains within a reasonable range to optimize long-term performance. By dynamically adjusting TP/SL levels, utilizing trailing stops, and managing risk per trade, traders can maintain consistent profitability despite market fluctuations. Ultimately, adapting strategies to market conditions, enforcing strict execution discipline, and maintaining risk control are essential for long-term survival and success in trading.

Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.

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