Copy Trading Master’s Winning Strategies Review — Episode 93

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

1. Copy Trading Master’s Introduction

User Nickname: Ray

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA3D77497

Trading Style: Medium- to short-term swing trading

2. Trade Operation Recap

Went long on $ETH with 100x leverage. Entry price: 2,397.04 USDT, closing price: 2,594.2 USDT, single trade ROE: +822.51%. See image below:

3. Trade Review

3.1 Market Background

On May 17, Moody’s Investors Service announced after the U.S. stock market closed on Friday that it had downgraded the U.S. sovereign credit rating from the highest level of Aaa to Aa1, while revising the outlook from “negative” to “stable.” This makes Moody’s the third major agency — following S&P and Fitch — to lower the U.S. credit rating below the top tier.

The downgrade was primarily driven by the continued rise in U.S. government debt and interest expenses, along with a concerning fiscal deficit outlook. Moody’s stated that U.S. Federal debt is expected to keep growing over the next decade, reaching 134% of GDP by 2035, while the fiscal deficit is projected to rise to nearly 9% of GDP. Without adjustments to tax and spending policies, the flexibility of the U.S. budget will be further constrained.

Following the announcement, U.S. stock futures declined in after-hours trading, with the Nasdaq and S&P 500 ETFs each falling by about 0.4%. The 10-year U.S. Treasury yield briefly rose to 4.48%, and the ICE U.S. Dollar Index weakened slightly.

Despite the downgrade, Moody’s maintained that the U.S. retains strong credit strengths, including a large and dynamic economy, strong innovation capacity, and the U.S. dollar’s dominant role as the global reserve currency. The “stable” outlook signals that no further downgrade is expected in the near term.

3.2 Trade Analysis

On the afternoon of May 18, after two days of narrow-range consolidation, the crypto market saw a broad rally, followed by a sharp pullback later that evening. Bitcoin briefly surged to $106,000 before retreating to around $103,000, where it found initial support. Before Monday’s close, the market gained strength again, with BTC reaching a high of $107,000 and closing the weekly candle in the green. However, it quickly pulled back afterward, entering a gradual downtrend.

Ethereum (ETH) posted a sharper decline, dropping from a high of $2,590 to a low of $2,310 — a cumulative drop of around 10%. On May 19, Bitcoin dipped as low as $102,000, while several major altcoins also broke below the previous day’s lows. That said, ETH found solid support above the $2,310 level within the Vegas tunnel, indicating relatively strong buying demand. The trading context is illustrated in the chart below.

1) From the 15-minute timeframe, ETH found clear support at the previous low. As BTC stabilized around the $102,000 level, ETH followed with a relatively strong rebound, while the RSI indicator showed a bullish divergence. During the pullback following the rebound, long positions were strategically deployed, with stop-losses set below the previous support level to manage potential downside risk.

2) Subsequently, on May 20, a key procedural vote on the “Guidance and National Innovation in Stablecoins Act of the United States” (GENIUS Act) passed with 66 votes in favor and 32 against. This significantly boosted market sentiment, leading to a broad rally. ETH briefly tested the key resistance level at $2,580 before pulling back. On May 22, Bitcoin broke its all-time high, while ETH experienced a sharp dip with high volume during the night. The price currently remains near a resistance zone. Given that the recent BTC rally has largely been driven by a short squeeze and altcoins have remained relatively weak, partial profit-taking was executed near the key resistance area, and stop-losses were adjusted higher to the nearest structural low to manage risk.

3.3 Winning Strategies Summary

Mastering the Mid-Term Edge: How to Effectively Trade 4-Hour Swings in the Crypto Market

The crypto market, known for its high volatility, 24/7 trading, and news-driven nature, has become a paradise for technical traders. Among all timeframes, the 4-hour chart (H4) stands out as a favorite for swing trading, striking a balance between clear trend direction and operational flexibility.

The 4-hour timeframe not only captures impulsive moves within a broader trend but also offers strong confirmation signals at early stages of trend reversals. Whether you’re following the momentum or preparing to short at the top, the H4 structure is a key tool for identifying profitable trading segments.

1) Why the 4-Hour Timeframe Works in Crypto Swing Trading

Why choose 4 hours?

• Moderate trading frequency: Ideal for part-time traders or non-professionals — checking charts just 1–3 times per day is sufficient.
• Sufficient volatility range: Major coins like BTC/ETH often move 3%–10% within a single swing, with altcoins offering even larger moves.
• Clear structure, fewer fakeouts: More stable than the 1-hour chart, yet more flexible than the daily chart.
• Great for capturing both trend and reversals: You can enter on pullbacks in an uptrend, or position for shorts during topping patterns.

Applicable Market Conditions:

• Market Type: 4H Swing Strategy Direction
• Trend continuation: Buy the dip / Sell the rally
• High-level consolidation: Short near the top of the range
• Breakdown acceleration: Follow the trend with short entries (breakdown continuation)
• Low-level accumulation: Breakout long setups
• News catalyst: Enter on volume breakout, set tight stop-loss

2) Identifying Effective Swing Structures: Universal Logic for Long and Short Setups

Before a swing move begins, the market typically goes through three phases: accumulation → breakout → impulse. This structural recognition logic applies to both bullish and bearish scenarios.

1. Bullish Structure Characteristics:

• Price pullbacks hold above key moving averages (e.g., EMA 20 / EMA 34)
• Higher lows form gradually, with sideways consolidation at the top showing limited retracement
• Volume contracts during pullbacks and expands on rallies
• Candlestick patterns such as bullish engulfing, multiple bottom wicks, or bullish divergence appear

2. Bearish Structure Characteristics:

• Weak rebounds followed by sharp rejection from resistance
• Lower highs form, creating a descending channel or falling wedge
• Volume increases on sell-offs and decreases during rebounds
• Classic topping patterns such as double tops (M-pattern), triple tops, or failed rising wedges
• Indicator confirmation such as MACD bearish crossover or RSI breaking below the 50 level

Once these signals appear in confluence with key technical zones (e.g., range boundaries, trendlines, high-volume nodes), they can serve as valid entry triggers for 4-hour swing trades.

3) Improve Win Rate Through Multi-Timeframe Confluence

The method of “Daily sets direction, 4H defines structure, 1H fine-tunes entry” remains highly effective for swing trading:

• Daily chart for directional bias: e.g., favor short setups within a daily descending channel
• 4H chart to identify entry structure: e.g., breakdown + retest, fake breakouts, multiple failed rallies
• 1H chart to refine entry timing: e.g., intraday topping patterns, momentum loss, or exhaustion signals

Example: If ETH shows weakness on the daily chart and forms an M-top (double top) pattern on the 4H chart with a MACD bearish crossover and volume-price alignment, a short entry can be taken at the right shoulder or neckline break on the 4H timeframe.

4）Long/Short Swing Trading Execution Framework

1. Long Strategies (Uptrend / Breakout from Consolidation)

2. Short Strategies (High-Level Reversal / Trend Reversal)

Risk Control and Positioning Suggestions

• Use scaled entries and trailing stop-losses for both long and short trades.
• Prioritize valid market structures and avoid directional bets during unclear structural phases.
• Suggested position size: no more than 30%–40% of account capital; risk per trade should not exceed 2%.
• When intraday market direction is unclear, reduce trading or lower trade frequency.

5) Avoiding Misjudgment: Common “Fake Swing” Traps

Before entering long or short positions, it’s critical to avoid falling for false structural signals. Below are some common misjudgment traps:

• False breakouts: Price briefly pierces key support/resistance levels without volume, then quickly reverses.
• Top exhaustion: Price keeps hitting new highs, but MACD/RSI show divergence and volume declines.
• Going long in strong downtrends / shorting strong uptrends: Ignoring the dominant trend and prematurely betting on a reversal.
• Overinterpreting news: For example, when the market prices in a bullish catalyst too early, leading to a selloff after the actual news release.
• Entering during structural uncertainty: Jumping in before the market finishes forming a clear structure often leads to stop-outs.

The key to effective shorting is to wait for structure confirmation, not to blindly short tops.

6) Conclusion: The Essence of Swing Trading Is Patience and Execution

Whether long or short, the core of swing trading on the 4-hour timeframe lies in:

• Following the trend with clear structure
• Using multi-timeframe confluence to avoid guessing
• Aligning with volume and sentiment
• Executing decisively with strict risk control

The crypto market never lacks opportunities — but only traders who are well-prepared and rhythm-aware can consistently profit amid volatility.

Both long and short trades must be based on confirmed signals and validated structure.

Wait patiently. Analyze calmly. Execute decisively. This is the true foundation of successful swing trading.

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/