Copy Trading Master’s Winning Strategies Review — Episode 91

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

Shorted $CHILLGUY with 25x leverage at an entry price of 0.0497 USDT and closed the position at 0.0465 USDT, achieving a single trade ROE of +160.97%. See the image below:

3. Trade Review

3.1 Market Background

1) On May 7, the U.S. state of New Hampshire officially passed HB 302, becoming the first state in the country to establish a cryptocurrency reserve. According to the new law, the state government may invest up to 5% of public funds in precious metals and digital assets with a market capitalization exceeding $500 billion. Currently, only Bitcoin meets the criteria.

Governor Kelly Ayotte stated on social platform X: “New Hampshire leads the nation once again!” She emphasized that the law covers not only crypto assets but also investments in precious metals.

The new law allows the state treasurer to hold Bitcoin through secure custody or exchange-traded products. It will officially take effect within 60 days.

Although the federal government had proposed the idea of establishing a national-level Bitcoin reserve, it is currently limited to holding existing Bitcoin and has made no new purchases. In contrast, New Hampshire is ahead in terms of implementation.

At present, similar legislation in several other U.S. states have failed to pass, and New Hampshire’s move may serve as an important reference for policymaking in other states.

2) Against the backdrop of global trade tensions and pressure from the Trump administration to cut interest rates, the Federal Reserve will announce its latest rate decision in the early hours of May 8. The market generally expects the Fed to maintain current rates, showing a highly cautious attitude toward rate cuts.

Goldman Sachs chief economist Jan Hatzius and others noted that compared to the trade conflict in 2019, the Fed has now set a higher bar for rate cuts. Although soft data has clearly weakened, with inflation remaining high, the Fed needs to see deterioration in hard data such as employment before taking action.

Nick Timiraos, a reporter often referred to as the “new Fed wire,” said that officials are currently more inclined to “defend inflation” and consider changes in the labor market a key reference.

Goldman Sachs predicts that if the job market continues to weaken, the Fed may start cutting rates as early as July, potentially delivering three cuts in total this year, lowering the federal funds rate to 3.5%-3.75%. In contrast, most market and economist forecasts expect only two cuts, showing a clear divergence in expectations.

3.2 Trade Analysis

From May 3 to 6, after touching the $97,800 resistance level, Bitcoin began to pull back. However, the overall trend remained strong, with higher lows forming within the range, indicating a steadily upward structure. In the early hours of May 7, following the announcement that New Hampshire had passed the HB 302 allowing public funds to be invested in Bitcoin, BTC experienced a short-term rally, rebounding from the intraday low of $93,300 to around $97,000. The daily candlestick chart formed a clear bullish pattern, suggesting that the bulls still hold a dominant position.

In contrast, mainstream and mid- to small-cap altcoins showed weaker performance. Although they briefly rebounded alongside BTC, the momentum failed to sustain and signs of upward resistance appeared. Among them, CHILLGUY printed three consecutive inverted hammer candlesticks after the rebound, with gradually lower highs. The candlestick structure shows a clear lack of bullish strength, indicating short-term retracement is likely. Further support will need to be sought at lower levels with renewed buying interest. The trading context is shown in the image below.

1) From the 15-minute chart perspective, CHILLGUY entered a broad consolidation phase after a sharp rally and is currently undergoing a high-level consolidation with active position rotation. Short-term moving averages have flattened, providing little effective support for the price, suggesting a short-term pullback is likely. Strategically, attention can be given to price action near the longer-term moving averages and horizontal support levels within the previous consolidation range as potential areas for tactical positioning. If the price breaks below the short-term moving averages and confirms the breakdown, short positions may be considered in line with the trend. It is recommended to place stop-loss orders near the breached moving averages to manage risk. The current strategy has a risk-reward ratio of 3.6, offering a relatively favorable risk-return profile.

2) Afterwards, Bitcoin entered a sideways consolidation phase, and market risk appetite declined, leading most altcoins to experience varying degrees of pullbacks. CHILLGUY followed with a sharp decline, with the downtrend accelerating notably. After testing a key support zone, the price showed signs of stabilization. The trading strategy reached its expected target, and the short position was closed out as planned, completing this round of trading.

3.3 Winning Strategies Summary

Moving Average Guidance for Trend Trading: From Trend Identification to Execution

In technical analysis, the moving average (MA) is one of the core tools for identifying trends and is widely used across various trading strategies. Whether you’re a beginner or an experienced trader, moving averages are always a key component in building a logical framework for trend analysis. This article systematically outlines how to use moving averages to identify trends, capture pullback opportunities, and construct a complete trading strategy to help traders improve their win rate and execution in trend-following strategies.

1) Core Logic of Moving Average Trend Trading

A moving average represents the weighted average of prices over a period and can smooth out price fluctuations while revealing direction and momentum. For trend traders, the key lies in identifying direction, finding rhythm, and managing risk.

Common MA settings and their uses:

• Short-term MAs (e.g., EMA9 / EMA12): used to identify short-term trend changes and entry points
• Mid-term MAs (e.g., EMA34 / EMA50): used to determine the prevailing trend
• Long-term MAs (e.g., EMA100 / EMA200): used to identify macro trends and structural shifts

MA combinations are commonly used for:

• Trend identification (bullish/bearish alignment)
• Golden/death cross confirmation (momentum shifts)
• Support/resistance identification (pullbacks and bounce points)

2) Identifying Trend Structures and Trading Signals

Trend direction confirmation:

• If price is above all key MAs and short-term MAs are bullishly aligned, this forms a bullish trend structure
• If price is below all key MAs and short-term MAs are bearishly aligned, this indicates a bearish trend structure
• If MAs are entangled and price moves back and forth near the MAs, the market is in a range, and trend signals are weak

Entry signal logic:

• Pullback + stabilization: In a bullish trend, if the price pulls back to a mid-term MA (e.g., EMA34) without breaking below and shows reversal candlesticks, this may be a buy opportunity
• MA golden cross: A short-term MA crossing above a mid-term MA, especially with volume, signals a potential trend initiation
• Second confirmation: After an initial breakout, a successful retest and stabilization provides a second entry opportunity suitable for low-risk position adding

3) Multi-Timeframe MA Confluence Strategy

• Daily trend + hourly entry: Confirm the trend on the daily chart, then wait for a pullback and stabilization on the 1-hour chart to enter; this improves efficiency and controls drawdown
• 15-min entry + 5-min stop: Short-term traders can build trade logic on the 15-minute chart and execute stop-loss/take-profit on the 5-minute chart for dynamic risk management

Multi-timeframe confluence not only filters out false signals but also helps structure trades and avoid emotionally driven decisions.

4) Supporting Tools and Risk Management Essentials

Combining with other technical indicators:

• MACD + MA cross: Confirms momentum; MACD golden cross supports MA golden cross
• RSI + pullback confirmation: During a pullback to the MA, if RSI stays above 50, the signal is more reliable
• Volume: A pullback followed by rising volume is more supportive than a weak-volume rebound

Risk control principles:

• Stop-loss: Typically placed 1–2% below the pullback MA or below the previous low
• Position sizing: Main position entered upon trend confirmation; add-on positions during a confirmed second pullback
• Invalid signal criteria: A break below key MAs accompanied by a bearish MA crossover should trigger immediate stop-out to avoid being caught in a trend reversal

5) Conclusion

The moving average trend trading strategy, known for its clarity and structure, is a commonly used method for traders aiming to achieve stable profits. By scientifically setting MA periods, combining multi-timeframe confluence, and incorporating momentum and volume indicators as additional tools, traders can not only identify trends more clearly but also enter decisively on pullbacks and exit effectively at turning points.

However, the key to trend trading lies in “discipline and recognizing reversals.” Moving averages are not a magical indicator, but they are the first step toward building a systematic trend trading strategy. Only by strictly following rules and continuous testing can one truly trade with the trend and pursue steady gains.

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

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