Copy Trading Master’s Winning Strategies Review — Episode 88

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

Long $ETH with 100x leverage: Entry price at 1,637.67 USDT, closing price at 1,672.17 USDT, single trade ROE +210.67%. See image below:

3. Trade Review

3.1 Market Background

1) On April 10, 2025, U.S. March inflation data unexpectedly softened. The overall CPI fell 0.1% month-over-month, marking the first negative growth in nearly five years; year-over-year, it rose 2.4%, a seven-month low. Core CPI rose 2.8% year-over-year, the lowest since March 2021.

The “super core” CPI (excluding housing services) dropped 0.1% month-over-month and increased 3.22% year-over-year, also hitting a new low.

After the data release, the U.S. dollar index fell briefly, U.S. Stock futures rebounded, and the yield on the 10-year Treasury declined.

Although the data shows inflationary pressure easing, analysts warned that a new round of tariffs initiated by Trump may push prices higher again. JPMorgan strategists called it possibly “the calm before the storm.”

Inflation in the services and housing sectors eased significantly in March. Housing inflation fell to 3.99% year-over-year, the lowest since 2021. Rents and hotel accommodation costs cooled noticeably. However, grocery prices still rose, with meat prices accelerating, meaning households continue to face some price pressures.

2) On April 11, 2025, U.S. March PPI data showed a broad decline, indicating continued cooling of inflation. A sharp drop in energy prices led to a 0.4% month-over-month decline in PPI — the largest drop since October 2023 — and a 2.7% year-over-year increase, the lowest since September 2024. Both figures were well below market expectations.

As for core PPI, it dropped 0.1% month-over-month and rose 3.3% year-over-year, also below expectations.

The data showed that energy prices plunged 4% month-over-month, accounting for about three-quarters of the total PPI decline. Food prices also fell 2.1%, with gasoline prices dropping sharply by 11.1%. Service prices declined 0.2%, the largest drop since July last year.

Despite CPI and PPI data indicating short-term relief in inflation, analysts continue to warn that Trump’s new round of tariffs could drive prices back up in the coming months.

3.2 Trade Analysis

Affected by tariff policies, the crypto market saw a volatile upward trend from April 9 to 13 following a sharp decline. After briefly falling below $1,400, ETH quickly rebounded and reached a high near $1,700 before entering a consolidation phase, maintaining a choppy upward pattern. From a technical perspective, $1,700 is a key resistance level. If it can be broken effectively, it may open up room for further gains. See chart for trading context:

1) On the 15-minute chart, ETH continued its upward trend after retesting the support level, with the price testing the upper range for the third time. After a slight pullback, it moved upward again, indicating strong bullish momentum. A long position was entered at this level, with the stop-loss set below the low of the small pinbar, and the take-profit target temporarily set at the key resistance level above.

2) Subsequently, ETH broke through the minor resistance level and moved up to test the key resistance. After being rejected and pulling back, there was a rebound, but the momentum clearly weakened, showing signs of exhaustion. Therefore, the position was closed in time to control risk. See image below:

3.3 Winning Strategies Summary

How to identify breakout timing in a range: A high-probability trend-following strategy

Range breakout trading refers to a strategy where, after a prolonged period of sideways consolidation, a breakout beyond the upper or lower boundary is seen as the beginning of a new trend, and traders enter accordingly. Compared to anticipatory strategies (left-side trading), range breakouts focus on confirmation before action, making it a key method in right-side trading. Mastering the logic and execution of range breakouts helps improve win rates and risk control, an essential tool for trend-following traders.

1) Basic concept of range breakout trading

Range-bound movement refers to price fluctuating between a fixed high and low range for a period of time, with relatively balanced buying and selling forces. The core of breakout trading is “wait and confirm.” When price breaks out of the range with momentum, it is considered a signal of a trend beginning.

Features:

• High-probability trend-following: Entry only occurs after trend confirmation, avoiding frequent attempts to catch tops and bottoms.
• Clear and simple execution: A breakout beyond the range boundary acts as a signal, allowing for standardized strategies.
• Prone to manipulation: Failed breakouts often turn into “false breakouts,” so beware of traps.

2) Key signals for confirming valid breakouts

1. Identifying range consolidation:

Strong breakout signals often rely on a clear and stable consolidation structure:

• Well-defined upper and lower bounds, forming a “price box”
• Shrinking volume and volatility indicate a coiling phase
• Reasonable duration, typically no less than 1–2 weeks; multi-month ranges are more meaningful

2. Breakout confirmation with volume:

A breakout must be accompanied by momentum; otherwise, it’s prone to being false:

• Strong breakout candles with body closing clearly above or below the range
• Volume significantly above the average of the range phase
• For bullish breakouts, price must exceed prior highs; for bearish breakouts, it must fall below prior lows

3. Pullback confirmation (secondary validation):

True breakouts often retest the breakout zone:

• After breakout, a retest of the previous range or high/low confirms role reversal as support/resistance
• Volume decreases on the pullback with strong bounceback
• These retests provide safer re-entry opportunities

3) Technical tools to assist breakout analysis

1. Moving average systems:

• Short-term MAs (e.g., EMA20) crossing long-term MAs (e.g., EMA60) indicate trend initiation
• MA expansion and price running along the MA line strengthens the trend continuation

2. Volume and volatility indicators:

• OBV (On-Balance Volume) rising or falling signals money flow aligned with trend
• Rising ATR indicates expanding volatility, meaning more room for price moves post-breakout
• When ATR and volume surge on breakout day, trend reliability increases

3. Channel indicators:

• Bollinger Bands expanding with price breaking upper/lower bands indicate trending potential
• Keltner and Donchian Channels can also assist in judging breakout range and momentum

4) Practical framework: A high-probability breakout strategy

1. Strategy framework example:

• Range identification: Price fluctuates less than 8% over past 10 days, forming clear bounds
• Breakout confirmation: Closing price breaks out beyond range with volume 1.5× above average
• Pullback validation: Retest of range boundary with signs like hammer or doji
• Entry strategy: Enter on first bullish engulfing candle after retest, stop-loss 1–2% beyond the opposite end of the range
• Take-profit target: 1–2× the height of the range, or use trailing stop to ride the trend

2. Multi-timeframe alignment:

• When a breakout occurs on daily chart, check 4H or 1H for short-term trend confirmation
• Volume increase on lower timeframe + breakout on higher timeframe is ideal confluence

3. Sentiment and catalyst alignment:

• News, macro events, or positive fundamentals often act as breakout catalysts
• Examples include: strong earnings, favorable regulation, or positive industry developments

5) Risk management and handling false breakouts

1. Set proper stop-loss levels:

• Place stop-loss just beyond failed breakout zone (e.g., back inside the range)
• If price falls back into the range after breakout, cut losses to avoid deep drawdowns

2. Position sizing and scaling:

• Start small on initial breakout, add on confirmation after pullback
• Scaling entries + dynamic take-profit helps smooth returns and reduce risk

3. Watch for bull/bear traps:

• High-volume rallies that fail to hold above prior highs may signal false breakouts
• Sharp rejections or long upper wicks indicate potential distribution or shakeout

6) Summary

Range breakout is a high-probability, trend-following strategy that focuses on “confirmation before entry” and is well-suited for the transition from consolidation to trending markets. The key lies in identifying high-quality range structures, waiting for valid breakout signals, and confirming with volume-price dynamics and technical indicators. At the same time, maintaining risk awareness, setting stop-losses and avoiding false breakouts is essential to seizing real trend opportunities and achieving consistent profits.

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/