Copy Trading Master’s Winning Strategies Review — Episode 83

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

1. Copy Trading Master’s Introduction

User Nickname: Colin

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA3D77447

Trading Style: Medium- to Short-Term Swing Trading.

2. Trade Operation Recap

Opened a 20x full-position long on $ETH at an entry price of 1894 USDT and an exit price of 1949.4 USDT, achieving a single trade ROE of +58.51%. See the chart below:

3. Trade Review

3.1 Market Background

1) On March 11, 2025, the U.S. stock market experienced a “Black Monday” crash, with all three major indexes plunging sharply. The Nasdaq dropped 4%, marking its largest single-day loss since September 2022; the S&P 500 fell 2.7%, and the Dow Jones declined 2.1%, wiping out gains made since the November 2023 election. Tech stocks led the decline, with the “Magnificent Seven” stocks — including NVIDIA, Microsoft, and Apple — all falling sharply, while Tesla plummeted over 15%, fueling market panic.

The market widely attributed the crash to comments made by U.S. President Donald Trump. In an interview, Trump downplayed stock market volatility and did not rule out the possibility of a recession, heightening investor concerns. His tariff policies and government downsizing plans were perceived as potential threats to economic growth, while uncertainty over the Federal Reserve’s rate cut trajectory further pressured the market.

Goldman Sachs data showed that hedge funds accelerated sell-offs, with short-selling activity reaching its highest level since November 2024. Analysts warned that if the S&P 500 breaks below its 200-day moving average, it could trigger a larger wave of selling. Investor confidence in the U.S. economic outlook has deteriorated significantly, with expectations of heightened market volatility ahead.

2) On March 12, 2025, high-level delegations from the U.S. and Ukraine released a joint statement after talks in Jeddah, Saudi Arabia. Ukraine expressed its willingness to accept a U.S.-proposed 30-day temporary ceasefire, with an option to extend the ceasefire upon mutual agreement, provided that Russia agrees and implements it simultaneously.

The U.S. announced the resumption of security assistance to Ukraine, including the lifting of the suspended intelligence-sharing ban. Both sides discussed humanitarian efforts, prisoner exchanges, and the resettlement of Ukrainian children, while also planning to finalize agreements on the development of Ukraine’s critical mineral resources to boost its economic growth.

U.S. Secretary of State Rubio stated that the U.S. aims to facilitate a Russia-Ukraine ceasefire and advance lasting peace, with future negotiations planned with Russian representatives. Ukrainian President Zelensky reaffirmed Ukraine’s readiness for a ceasefire, emphasizing that Russia must clarify its stance.

Additionally, U.S. President Trump announced his intention to invite Zelensky back to the White House and hoped that Russia would accept the ceasefire plan. According to Kremlin correspondents, Trump and Russian President Putin are scheduled to hold a call this Friday to discuss the ceasefire and related issues.

3) On the evening of March 13, 2025, the U.S. February CPI data is set to be released. Wall Street expects a slight overall slowdown, with core CPI growth projected to fall to 3.2% YoY. Analysts suggest that if the data meets or falls below expectations, it could strengthen the case for Fed rate cuts, providing a short-term boost to market confidence. However, if inflation exceeds expectations, it could reinforce stagflation concerns, limit the Fed’s rate cut room, and intensify U.S. stock sell-off pressures.

Goldman Sachs predicts that used car prices, auto insurance, and seasonal factors will be key drivers behind the CPI slowdown, while housing costs remain a major component. At the same time, uncertainties surrounding Trump’s tariff policies have increased inflation risks, with Fed officials repeatedly warning about the need to closely monitor price trends.

The Federal Reserve’s FOMC meeting is scheduled for March 18–19, with the market widely expecting no change in interest rates. While markets have priced in three rate cuts for the year, failure to see expected disinflation could further constrain the Fed’s policy flexibility. JPMorgan and Goldman Sachs’ market scenario analysis suggests that CPI data outcomes will directly impact S&P 500 volatility, making tonight’s release a key event for investors to watch.

3.2 Trade Analysis

Between March 9 and March 11, 2025, ETH experienced a sharp decline on the daily chart, deviating from the 30-day moving average and rapidly retreating to the key support area near $1,800. At the same time, BTC also touched the ascending trendline on the weekly chart. From a short-term perspective, the crypto market appears oversold, suggesting that short-term trades should focus on buying dips to seize potential rebound opportunities. Trading background as shown in the chart:

1) From March 11 to March 13, BTC and ETH maintained a steady upward trend, with higher lows forming gradually. The short-term downside risk was largely mitigated, making a low-buy strategy relatively favorable. Compared to BTC, ETH exhibited greater intraday volatility, presenting more trading opportunities for short-term traders.

On the afternoon of March 13, a trader known for accurately identifying key levels on Hyperliquid and profiting with 50x leverage once again opened a long position in ETH. The nominal value of their account surged from 40,000 ETH to 70,000 ETH, approximately $150 million. Shortly after, when ETH broke above $1,910, the trader took profit on one-third of the position, leading to a temporary pullback to around $1,885.

From a 15-minute chart perspective, $1,885 acted as a key support/resistance flip level within the previous consolidation range, having been tested multiple times. On a 5-minute chart, price stabilized above this support and the 30-day moving average, forming two consecutive lower wicks, indicating stronger buy-side absorption. Subsequently, a long position was entered around $1,894, with a stop-loss set below the wick low and a take-profit target near the upper resistance zone. Chart reference below:

2) The trader continued adding to their long position, gradually increasing the position size to 140,000 ETH. As their buying pressure intensified, coupled with copy-trading funds following suit, ETH’s price surged rapidly. Ultimately, on the 5-minute chart, ETH accelerated toward a key resistance level, triggering the take-profit mechanism, leading to a full position closure. Chart reference below:

3.3 Winning Strategies Summary

Short-Term Trading Strategy Based on Support & Resistance Levels

In short-term trading, the effective use of support and resistance levels is crucial. Accurately identifying key price levels and combining them with technical analysis can significantly improve trade success rates and optimize risk-reward ratios. Compared to solely relying on market sentiment or blindly chasing price movements, a support and resistance-based strategy provides clear entry, take-profit, and stop-loss criteria, allowing for stable profitability amid market fluctuations.

1) Basic Concepts of Support & Resistance Levels

• Support Level (Support) A support level refers to a price zone where buying pressure increases during a downtrend, preventing further price decline. This area often attracts heavy long interest and acts as a price floor. However, if broken, a support level may turn into resistance in future price movements.
• Resistance Level (Resistance) A resistance level is a price zone where selling pressure increases during an uptrend, limiting further price advances. This area often sees profit-taking by long traders or an increase in short interest. If resistance is broken, it can turn into a new support level.

Support & Resistance Flip The interaction between support and resistance is a key focus for traders. Once a support level is broken, it tends to act as future resistance, and vice versa. This concept plays a crucial role in confirming breakout or trend continuation signals.

2) Methods to Identify Support & Resistance Levels

1. Historical Price Levels

• Identify key price zones where the market has repeatedly bounced (support) or faced rejection (resistance).
• For example, if a price level consistently acts as a turning point on the daily or 4-hour chart, it is likely a significant support or resistance zone.

2. Moving Averages

• Key moving averages (e.g., 50-day and 200-day) often act as dynamic support or resistance levels.
• For instance, in an uptrend, a retracement to the 50-day moving average that holds as support could be a good buying opportunity.

3. High Volume Areas

• Areas of high trading volume often serve as strong support or resistance zones.
• During market structure shifts, price zones with significant volume spikes indicate active accumulation or distribution, influencing future price action.

4. Fibonacci Retracement Levels

• Fibonacci retracement levels (0.382, 0.5, 0.618, etc.) help identify potential support and resistance levels.
• For example, after an uptrend, if the price retraces to the 0.618 level and finds support, this often signals strong buying interest and a potential long entry opportunity.

5. Trendlines

• Connecting multiple swing lows (uptrend) or swing highs (downtrend) forms trendlines, which serve as dynamic support or resistance.
• If price finds support at a trendline with increased volume, it can be a strong buy signal. Conversely, a trendline break with heavy selling volume may indicate a trend reversal.

3) Short-Term Trading Strategies Based on Support & Resistance Levels

1. Breakout Trading Strategy

When price breaks a key resistance level with strong volume, traders can consider entering a long position. Stop-loss should be placed below the previous consolidation low to limit downside risk.

Example: If ETH forms resistance at $1,910 and repeatedly tests it before breaking out with volume, traders can enter a long position on the pullback confirmation at the new support.

2. Pullback Confirmation Strategy

After breaking a resistance level, price often retests it as new support before continuing higher. If price stabilizes at the retest zone, traders can enter long positions near the support.

Example: If BTC breaks $50,000 and then pulls back to $49,800 but holds, this can be a short-term buy opportunity.

3. Range-Bound Trading Strategy

In sideways (range-bound) markets, traders buy near support and sell near resistance for short-term gains.

Example: If ETH trades between $1,885 and $1,910, traders can go long near $1,885 with a stop-loss below $1,880 and a profit target near $1,910.

4. False Breakout Trading Strategy

When price briefly breaks a support or resistance level but fails to hold, a false breakout occurs, offering a counter-trend trade opportunity.

Example: If ETH breaks above $1,910 but fails to hold and quickly drops to $1,890, this could be a bull trap, signaling a short opportunity near $1,900.

4) Take-Profit, Stop-Loss & Risk-Reward Management

1. Proper Stop-Loss Placement

Buy trades (longs): Set stop-loss below support to prevent losses if price breaks down.

Sell trades (shorts): Set stop-loss above resistance to protect against breakouts.

Example: If going long at $1,885, the stop-loss should be below $1,880 to minimize downside risk.

2. Take-Profit Targets

Profit targets should align with the next key resistance level to maintain a favorable risk-reward ratio.

Example: If buying at $1,885 support, the profit target can be set at $1,910 resistance.

3. Risk-Reward Ratio Management

Always maintain a minimum risk-reward ratio of 1:2 to ensure long-term profitability.

Example: If a stop-loss is set at $10, the profit target should be at least $20.

4. Dynamic Stop-Loss & Take-Profit Adjustments

Trailing Stop: Adjust stop-loss higher as price moves in your favor, securing profits while allowing for further gains.

Partial Take-Profit: Close part of the position near the profit target while leaving the rest for larger potential moves.

5）Summary

The short-term trading strategy based on support and resistance levels is a relatively stable approach, providing clear entry, take-profit, and stop-loss levels. Traders can use technical analysis to identify key support and resistance zones and develop rational trading plans based on market conditions. In actual trading, setting appropriate take-profit and stop-loss levels, optimizing risk-reward ratios, and applying dynamic risk management techniques can significantly enhance the stability and profitability of a trading system. Strict discipline and flexible strategy adjustments in response to market conditions are essential for achieving long-term success in short-term trading.

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

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