Copy Trading Master’s Winning Strategies Review — Episode 92

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

1. Copy Trading Master’s Introduction

User Nickname: leo

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA2D56200

Trading Style: Short- to Mid-Term Swing Trading

2. Trade Operation Recap

Went long on $ETH with 100x leverage, opening price at 1,825.2 USDT and closing price at 2,677.31 USDT, achieving a single trade ROE of +4,668.59%. See screenshot below:

3. Trade Review

3.1 Market Background

1) On May 7, the Federal Reserve decided to keep interest rates unchanged at its latest monetary policy meeting, stating that “the risks of rising unemployment and inflation have both increased.” In the post-meeting press conference, Chair Jerome Powell remarked that it remains unclear which risk poses a greater threat and emphasized the need to balance between employment and inflation. However, he added that it is “too early to draw conclusions.”

Powell stressed that the Fed has no urgency to cut rates and that the current policy stance is moderately restrictive. He candidly noted that the Trump administration’s high tariffs could drive both inflation and unemployment higher, and warned that if tariffs persist, the Fed may find it difficult to meet its policy goals “within the next year.” Amid tariff uncertainty, Powell repeatedly stated “we don’t know” their specific impact and emphasized that the current environment is not suitable for “preemptive” policy actions. Instead, the Fed will continue to “patiently observe the data.” When asked about relations with the Trump administration, Powell stated that calls for rate cuts from the president “will not affect Fed decisions,” and added that he has never requested a meeting with any president.

Powell also pointed out that the U.S. government’s debt growth trajectory is “not sustainable,” but noted that the Fed does not advise on fiscal policy. He admitted that inflation effects have not yet materialized, it may be temporary or more persistent. Most analysts believe that the Fed’s latest statement and wording suggest a high bar for rate cuts in June, indicating the Fed remains in a “data-dependent” wait-and-see mode.

2) In the past five trading days, U.S.-listed spot Bitcoin ETFs saw a net inflow of 17,830 BTC, down from 24,970 BTC in the previous five-day period. Over the same time, spot Ethereum ETFs recorded net purchases of 23,520 ETH, also below the prior figure of 103,310 ETH, indicating continued strong capital inflows into both categories of crypto asset ETFs.

3) Over the past week, the net issuance of stablecoins increased by $3 billion. Although this figure is down from the previous $5.3 billion, it still represents steady growth and indicates continued improvement in market liquidity.

3.2 Trade Analysis

Over the past two weeks, Bitcoin has generally moved upward within a consolidation range of $92,000 to $97,000. It remained stable during pullbacks, indicating solid support at lower levels. Ahead of the Fed meeting, the price briefly approached the upper boundary of the range. Although there was a slight dip during the meeting, Bitcoin quickly stabilized after touching $95,800 and rebounded, suggesting that the overall trend remains strong.

During the same period, Ethereum showed even greater resilience, consolidating at high levels within the $1,730 to $1,870 range over the past two weeks, with clear buying support. Each dip was quickly recovered, and the price continued to form higher lows, indicating a steady build-up in bullish momentum. According to the VPVR (Volume Profile Visible Range) indicator, the current price zone corresponds to a high-volume node over the past two months. If a stable base can be formed in this area, it could provide the foundation for the next upward move. Trading background as shown in the chart:

1) From the 15-minute timeframe, although Powell’s comments leaned hawkish, the price did not break below previous lows. Instead, it quickly stabilized after a brief pullback and began to rebound, indicating strong buying support below. From a technical perspective, the overall price action shows a classic pattern of a strong consolidation followed by a rebound. In terms of strategy, once the price broke above the short-term moving average, it made sense to follow the trend and attempt a long position. It is advisable to place stop-loss orders below the structural low to control risk and improve the risk-reward ratio.

2) Shortly afterward, ETH saw an aggressive surge, with the price consistently moving above the moving average. When the price found support at the moving average and pushed higher again, it approached a resistance level. However, the momentum of the second wave was clearly weaker. A take-profit decision was made by closing the position.

3.3 Winning Strategies Summary

Identifying Strong Consolidation Zones: Signs of Momentum Before Trend Continuation

In trend trading, price does not always move in a straight line. Many major breakouts often originate from a strong consolidation phase. Unlike regular sideways ranges, strong consolidations reflect intense tug-of-war between bulls and bears and often act as a prelude to trend continuation. Recognizing this high-probability setup allows traders to position early before a breakout, leading to better risk-reward ratios and improved trade timing.

1) Definition and Market Characteristics of Strong Consolidation

A strong consolidation refers to a tight price range formed at high levels following an uptrend. During this phase, price retracements are limited, indicating bullish momentum remains intact.

Common characteristics include:

• Price remains in a tight range near highs with no major pullbacks;
• Downward momentum is weak, and dips are quickly bought up;
• Volatility contracts, and volume is stable or slightly declining;
• Price structure stays intact, often forming patterns like symmetrical triangles, flags, or rectangular ranges.

These setups often appear during trend continuation phases and serve as the base for a breakout.

2) Structure Identification and Confirmation Logic

To confirm strong consolidation, traders should combine price action, volume analysis, and key support level validation.

Price action indicators:

• Price holds above key moving averages (e.g., EMA20 / EMA34);
• Pullbacks form higher lows, showing active bullish absorption;
• Candlesticks are small-bodied (e.g., small bullish/bearish candles), with no decisive breakdown.

Volume-price behavior:

• Pullbacks occur on decreasing volume, while breakout attempts show increasing volume;
• No signs of major position unwinding; positions appear stable;
• VPVR or volume profile shows high trading activity around current price, providing solid support.

Supplementary indicators:

• RSI remains above 50, indicating price is still in bullish territory;
• MACD consolidates above the zero line, showing potential for new momentum build-up;
• Bollinger Band mid-line slopes upward, with price hovering near the upper or mid band.

3) Entry Strategies and Breakout Setup

Once the structure’s stability is confirmed, traders may apply the following trend-following strategies:

1. Buy Low Within the Range:

• Enter near the bottom of the consolidation range when price stabilizes, ideally with confluence from a key moving average or high-volume node;
• Place stop-loss slightly below the lower boundary to guard against false breakouts.

2. Breakout Entry:

• Enter long when price breaks out above the range with volume confirmation;
• Additional positions can be added on a successful retest of the breakout zone, riding the trend continuation.

3. Add on Retest (Break-Confirm-Rise Pattern):

• If price retests the upper boundary post-breakout and holds, it forms a classic “break-confirm-rise” structure with relatively low risk.

Timing Control:

• Avoid guessing the direction — wait for confirmation signals;
• Use layered position sizing to avoid overexposure in one entry.

4) Risk Signals of Failed Consolidation

Not all consolidations lead to breakouts, some may evolve into reversals. Identifying failure signs is equally important:

• Breakdown below key support with high volume (e.g., breach of EMA50 or range bottom);
• Large bearish candles with volume spikes, indicating buyer withdrawal;
• Bearish divergence: price makes new highs while MACD/RSI weakens;
• Rising volume without price breakout (“volume stalling”), suggesting distribution.

If the structure is invalidated, traders should cut losses decisively to avoid deeper drawdowns from a trend reversal.

5) Conclusion

Strong consolidations are an essential continuation structure in trend trading. When identified correctly, they can offer traders low-risk, high-potential entry opportunities. By combining price action, volume characteristics, and multi-timeframe structural analysis, traders can more confidently pinpoint key moments of trend continuation amidst market volatility.

However, it is important to emphasize that strong consolidation does not guarantee a breakout. The key to solid execution lies in waiting patiently for confirmation signals and strictly adhering to trading discipline. Just as trends often emerge from consolidation phases, great trades are rooted in calm preparation and patient observation.

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

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