Copy Trading Master’s Winning Strategies Review — Episode 86

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: Short-Term Swing Trading

2. Trade Operation Recap

Shorted $LTC with 25x leverage at an entry price of 84.56 USDT and closed at 81.8 USDT, achieving a single trade ROE of +81.6%. See image below:

3. Trade Review

3.1 Market Background

1) On March 27, 2025, U.S. President Donald Trump signed an executive order imposing a 25% tariff on all imported vehicles, effective April 2. Trump stated that the tariffs would be permanent, and that vehicles manufactured within the U.S. would be exempt.

Following the announcement, global automotive stocks broadly declined. In the U.S. markets, General Motors fell over 5% in after-hours trading, Ford dropped more than 3%, and Toyota declined over 1%. In Europe, Michelin closed down over 6%, while BMW, Mercedes-Benz, and Volkswagen — all listed in Germany — fell around 2%. Ferrari, listed in Italy, closed down 3.7%.

Reports of the tariff had already circulated prior to the official announcement, causing intraday volatility in both U.S. and European auto stocks. White House officials had hinted earlier in the week that the new tariff might be announced soon. Meanwhile, GM CEO Mary Barra and Ford Executive Chair Bill Ford had engaged in talks with government representatives.

The Trump administration has made frequent adjustments to its trade policies in recent weeks. In addition to the auto tariffs, Trump also announced new tariffs on lumber, pharmaceuticals, and Venezuelan oil and gas. For Venezuelan energy, the U.S. plans to impose secondary tariffs, charging an extra 25% on countries that import oil from Venezuela.

Since returning to the White House in January, Trump has launched a new round of tariffs targeting major trade partners, emphasizing a policy of “reciprocal tariffs.” He mentioned that some countries may be eligible for reduced tariffs, but only if they move toward balanced trade. Trump also noted that the EU has agreed to lower its auto tariff rate to 2.5%, matching the U.S. rate.

Economists and market analysts warn that the administration’s trade policies may increase global economic uncertainty and risk slowing the U.S. economy. Bruce Kasman, Chief Global Economist at JPMorgan, now estimates a 40% chance of a U.S. recession in 2025, up from the 30% forecast earlier this year.

2) On March 28, 2025, the U.S. Department of Commerce released its latest economic data, showing that the core Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation gauge — rose 2.79% year-over-year in February, exceeding the expected 2.7% and marking the highest level since December 2024. On a month-over-month basis, core PCE also rose 0.4%, again above expectations.

The data suggests that inflation remains stubbornly high, even as consumer spending shows little sign of growth, posing new challenges for the economy.

Total personal consumption expenditures rose 0.4% MoM, but inflation-adjusted (real) spending increased only 0.1%, well below expectations following a 0.5% decline in January. Meanwhile, the personal savings rate climbed to its highest level since June 2024, signaling growing consumer caution.

Following the data release, U.S. Equity futures declined, Treasury yields fell, and the dollar edged higher. Market participants continue to expect the Fed to begin cutting interest rates in July, with two rate cuts projected for the year. However, the Trump administration’s upcoming tariffs could further fuel inflationary pressure, prompting heightened scrutiny from Fed officials.

Analysts warn that a combination of persistent inflation, weak consumer spending, and uncertainty around trade policy could increase the risk of stagflation. David Russell, Head of Global Market Strategy at TradeStation, stated that with rising incomes and tariffs set to take effect, inflation may remain elevated, potentially limiting the Fed’s ability to ease monetary policy.

3) On March 28, 2025, the University of Michigan’s final consumer sentiment index for March fell to 57, below expectations of 57.9, marking the lowest level in over two years. At the same time, 5-year inflation expectations surged to 4.1%, the highest level since 1993, indicating growing consumer concern over rising prices.

Following the release, U.S. stocks dropped sharply. The Nasdaq fell more than 1.2%, the S&P 500 lost 0.9%, and the Dow Jones Industrial Average declined by 360 points. As risk-off sentiment intensified, Treasury yields dropped and gold hit a new all-time high, approaching $3,087 per ounce.

Market analysts believe the new tariff policies are further driving inflation expectations, which may prompt the Federal Reserve to delay interest rate cuts. At the same time, consumers’ increasingly pessimistic outlook on the labor market may suppress future spending and raise the risk of a broader economic slowdown.

3.2 Trade Analysis

Due to the upcoming tariff policy set to take effect on April 2, the crypto market experienced broad downward pressure from March 28 to 30. Although a rebound followed, the momentum remained weak. After breaking below a bearish flag pattern, LTC failed to sustain a strong recovery, continuing to move within a descending channel. This reflects a typical bearish continuation structure, suggesting that further downside risk remains in the short term. Trading background is shown in the chart below:

1)On the 1-hour timeframe, LTC entered a consolidation downtrend phase following a sharp decline, with highs gradually moving lower and multiple upper wicks indicating strong selling pressure above. Toward the end of the consolidation, an inverted hammer pattern appeared, signaling weak bullish attempts. After confirming this weakness, a short position was taken, with the stop-loss set at the tip of the inverted hammer to manage risk.

2)Subsequently, LTC resumed its decline in line with the broader market and accelerated downward until it found support at a higher time frame support zone, where it stabilized and began to rebound. Meanwhile, the broader market also saw varying degrees of recovery. During this price correction phase, profit was taken at an opportune time to lock in gains. See chart below:

3.3 Winning Strategies Summary

How to Identify Market Trends: A Core Skill Every Trader Must Master

Trend analysis is one of the fundamental concepts in financial market trading. Accurately identifying market trends allows traders to follow the momentum and improve their chances of success. In practice, market trends are typically classified into uptrends, downtrends, and sideways (range-bound) trends. Determining the prevailing trend involves analyzing price structure, technical indicators, market sentiment, and more. This article will explore the different types of trends, methods for identifying them, trading strategies, and risk management techniques to help traders better recognize market trends and optimize their decision-making.

1) Types of Market Trends

Based on the direction of price movement, market trends can be categorized into three types:

1. Uptrend

• Price consistently forms higher highs and higher lows.
• Traders should focus on long positions, looking for buying opportunities at lower levels.
• Technical characteristics: Moving averages are in a bullish alignment, price moves upward along support levels, and continues to rise after breaking key resistance levels.

2. Downtrend

• Price consistently forms lower highs and lower lows.
• Traders should focus on short positions, seeking selling opportunities at higher levels.
• Technical characteristics: Moving averages are in a bearish alignment, price moves downward along resistance levels, and continues to decline after breaking key support levels.

3. Sideways / Range-bound Trend

• Price fluctuates within a defined range, with relatively fixed highs and lows, showing no clear upward or downward trend.
• Suitable for range-trading strategies — buying at support and selling at resistance.
• Technical characteristics: Price oscillates between horizontal trend lines, moving averages flatten out, and overall volatility is low.

2) Methods for Identifying Trends

1. Price Structure Analysis

The most fundamental method of identifying a trend is by observing price structure — specifically, whether the market is forming higher or lower highs and lows.

• Uptrend: Price forms higher highs (HH) and higher lows (HL).
• Downtrend: Price forms lower highs (LH) and lower lows (LL).
• Sideways Trend: Highs and lows remain within a defined range without breaking previous levels, indicating horizontal consolidation.

2. Moving Average (MA) Analysis

Moving averages are essential tools for identifying trends. Common combinations include:

• Short-term MAs (e.g., 5-day, 10-day): Capture short-term trend changes.
• Medium-term MAs (e.g., 20-day, 50-day): Confirm the trend direction.
• Long-term MAs (e.g., 100-day, 200-day): Identify long-term trends.

Trend signals:

• Bullish alignment (short-term MA above long-term MA) → Indicates an uptrend.
• Bearish alignment (short-term MA below long-term MA) → Indicates a downtrend.
• Flat or overlapping MAs → Suggests a sideways trend.

3. Trendline Analysis

Trendlines connect a series of highs or lows and act as dynamic support or resistance:

• Uptrend line: Connects multiple lows; price tends to rise along this line and may continue upward after pulling back to it.
• Downtrend line: Connects multiple highs; price tends to fall along this line and may continue downward after rebounding to it.

The validity of a trendline depends on how many points it connects and how well it’s respected by the market.

4. Fibonacci Retracement

Fibonacci retracement helps identify potential support and resistance within a trend. Key levels include 0.382, 0.5, and 0.618:

• In an uptrend, price stabilizing near the 0.618 level may signal a continuation upward.
• In a downtrend, price facing resistance near the 0.618 level may indicate further decline.

5. Momentum Indicators

Momentum indicators help assess trend strength. Examples include:

(1) RSI (Relative Strength Index):

• RSI > 50 suggests strong bullish momentum.
• RSI < 50 suggests weak momentum and possible continuation of a downtrend.

(2) MACD (Moving Average Convergence Divergence):

• DIF line crossing above DEA line → Bullish signal.
• DIF line crossing below DEA line → Bearish signal.

6. Volume Analysis

Volume is essential for confirming the strength of a trend:

• In an uptrend, rising prices with increasing volume suggest strength and potential continuation.
• In a downtrend, falling prices with increasing volume indicate strong downward pressure.
• If volume decreases, the trend may be weakening, potentially leading to consolidation or reversal.

3) Trend Trading Strategies

1. Trend Following

• In an uptrend, go long when the price pulls back to a support level or moving average; set stop-loss just below the previous low.
• In a downtrend, go short when the price rebounds to a resistance level or moving average; set stop-loss just above the previous high.

2. Counter-Trend Trading

• Suitable when a trend shows signs of exhaustion or in cases of extreme overbought/oversold conditions.
• Use momentum indicators such as RSI and MACD to identify potential reversal signals.
• Counter-trend trading carries higher risk and requires strict stop-loss management.

3. Breakout Trading

• In a sideways market, trade in the direction of the breakout once price breaks key support or resistance.
• Confirm the validity of the breakout using volume analysis to avoid false breakouts.

4) Risk Management in Trend Trading

1. Set Stop-Losses Strictly

• For long positions, place the stop-loss below the previous low or beneath the trendline.
• For short positions, place the stop-loss above the previous high or above the trendline.

2. Manage Position Sizes Wisely

• Avoid allocating excessive capital to a single trade. (Consider using a pyramid strategy: start with a small position at a low-risk entry, then add to it gradually as the trend confirms.)

3. Avoid Counter-Trend Trades

• Beginners should avoid trading against the trend. Trend-following strategies are more aligned with market logic and generally have a higher success rate.

4. Monitor Market News

• Major news events and policy changes can significantly impact market trends. Always assess the broader market environment before entering a trade.

5) Conclusion

Trend identification is one of the core skills in trading. Accurately recognizing market trends can enhance trading success rates and improve capital management. When analyzing trends, traders should combine multiple methods — such as price structure, moving averages, trendlines, momentum indicators, and volume — to ensure the reliability of signals. At the same time, strict risk management is essential for trend trading. Traders should always follow the trend and implement proper stop-loss and position sizing strategies to enhance long-term profitability.

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

Click here to download for iOS or Android

Website: https://www.lbank.com/
Twitter: https://twitter.com/LBank_Exchange
Facebook: https://www.facebook.com/lbankcom/
YouTube: https://www.youtube.com/c/LBankExchange
Telegram: https://t.me/LBank_en
LinkedIn: https://www.linkedin.com/company/lbank
Medium: https://lbank-exchange.medium.com/
Reddit: https://www.reddit.com/r/LBank2021/