Copy Trading Master’s Winning Strategies Review — Episode 118

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

1.Copy Trading Master’s Introduction

User Nickname: LBA2D56200

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

Trading Style: Mid- to short-term swing trading

2.Trade Operation Recap

Went long on $XPL with 15× leverage, entry price 0.2962 USDT, closing price 0.3219 USDT, achieving a single-trade ROI of +130.15%. As shown below:

3.Trade Review

3.1 Market Background

Between October 5–7, particularly on Friday night, the U.S. stock market experienced a wave of panic selling, with major indices plunging sharply and overall market sentiment cooling rapidly. However, unlike the weakness seen in traditional risk assets, the crypto market remained relatively resilient. Most major cryptocurrencies did not break their structural support levels during the U.S. market sell-off, and prices held above key zones, showing notable downside resistance.

During this period, Bitcoin briefly dipped below the 100,000 USDT level twice, but both times quickly recovered its losses. The price structure gradually formed a “W-bottom” pattern, signaling signs of stabilization. From a technical perspective, the 4H candles show solid bodies with supportive volume, indicating that after an earlier period of consolidation, the market has started forming a short-term reversal structure, with buying strength improving.

Moving into October 9, Bitcoin continued upward after a small pullback to retest support, maintaining its short-term bullish momentum. Against this backdrop, market sentiment turned more optimistic, and several altcoins began to show follow-up rally potential. XPL, for example, has recently seen a sharp increase in trading activity, with wider intraday swings. Structurally, it has continued to print higher highs and higher lows, reflecting strong bullish momentum. Even during last Friday’s U.S. stock meltdown, XPL held steady, did not break prior lows, and remained well above its major support zone.

After Bitcoin confirmed stability, a long position was opened on XPL. Subsequently, Bitcoin rebounded toward the key resistance zone near 106,000 USDT, which briefly boosted overall sentiment. However, XPL’s bullish momentum began to slow, and lower-timeframe structures showed that buyers were turning cautious. Considering short-term risks and the pressure from this resistance zone, the position was closed with take-profit at the highs. The overall execution was clear, risk control was disciplined, and the trade resulted in steady gains. Market background charts are shown below:

3.2 Trade Analysis

Swing Trading: Capturing Trend Power Within Volatility

In short-cycle markets, price movement resembles a tightly choreographed dance. It doesn’t have the long-range extension of daily charts, yet within every emotional release and rebound lies a series of high-value opportunities.

1H–4H swing trading sits between scalping and macro trends — a “mid-frequency art,” requiring traders to understand both trend direction and the market’s subtle shifts in momentum.

I. Core Logic of Swing Trading: Trend Fractals & Energy Cycles

The market is inherently fractal. A daily trend is built from multiple 4H swings, and each 4H swing is composed of even smaller oscillations.

To master swing trading, one must understand a core rule:

Any trend is formed by multiple short-cycle swings resonating together.

The 1H–4H timeframe is valuable because it shows:

The early momentum of a trend, and signals of reversal before they appear on the daily chart.

Within this structure, traders should focus on three energy cycles:

• Accumulation (energy compression): narrow range, low volume, cooled sentiment
• Expansion (energy release): structure breakout, rising momentum, trend confirmation
• Retrace (energy rebuild): pullback to key MAs or structure, volume contraction, preparing for next move

A true swing-trading expert doesn’t predict where a trend ends — they identify the activation signal of each energy cycle.

II. Building the Framework: Technical Foundations of Swing Trading

To profit steadily in the 1H–4H range, a clear structure is essential. It consists of: trend identification, momentum confirmation, entry logic.

1. Trend Identification: Direction First, Structure Second

• Use MA60 and MA200 to determine mid-term trend
• MA60 crossing above MA200 → bullish bias
• MA60 crossing below MA200 → bearish bias
• Observe whether the price is moving above the moving-average system, and check whether the highs and lows are rising or falling in sync.

2. Momentum Confirmation: Reading the Energy Behind Price

• MACD histogram holding above zero during retests → strong signal
• RSI staying in the 50–70 zone → buyers in control
• OBV trending upward → net inflows

3. Entry Logic: Wait for Confirmation, Not Guesswork

• Trend pullback: First retest after breakout = highest-probability setup
• Range breakout: Volume-backed breakout from a consolidation box
• False drop, real rise: After a structural false breakout, the price quickly recovers, often accompanied by a long–short reversal.

A successful swing-trade entry is not about “catching the exact bottom,” but about “waiting for confirmation at the edge of trend initiation.”

III. Position & Stop Loss: The Life-or-Death Line of Swing Trading

The 1H–4H timeframe brings strong volatility,

so position sizing and stop loss discipline are critical.

1. Position Management

• Risk per trade: 1%–2% of account
• Consider scaling entries near key support/resistance
• Once profit exceeds 1.5R, begin partial take-profit or tighten stops

2. Stop Loss Logic

• Structure stop: Beyond previous swing high/low
• Time stop: Exit if structure does NOT break within 2–3 × 4H candles
• Momentum stop: MACD/RSI divergence = trend exhaustion → exit

Remember: swing trading is not a long war — it’s a timing battle. A stop loss isn’t failure; it’s a tempo reset when rhythm breaks.

IV. Execution Strategy: Three Steps to Mastering Swing Rhythm

Swing trading can be simplified into three stages:

Identify → Wait → Execute

Excellent traders make the most money during the expansion phase, and lose little — or nothing — during the exhaustion phase.

V. Common Misconceptions: The “Chronic Traps” of Short Timeframes

1. Overtrading: The 1–4 hour timeframe gives the illusion that “more trades = more profit,” but in reality, most fluctuations offer no actionable value.
2. Ignoring Higher Timeframes: Short-term signals that are not supported by the daily trend are often just false noise.
3. Emotional Interference: Constantly watching the charts makes traders fall into emotional traps caused by micro-movements, leading them to miss real swing opportunities.

How to fix it:

Create a daily trading plan, limit the number of trades and trading windows, and only enter when structural conditions are clear.

VI. The Core of Swing-Trading Mindset: Rhythm Over Prediction

Successful trading in the 1–4 hour timeframe does not come from predicting the market, but from listening to its rhythm. When you learn to sense the “breathing” of the trend through the interaction of price and time, trading stops being a fight — and becomes a collaboration.

• Follow the trend decisively during breakouts.
• Stay patient during consolidations.
• Hold with confidence when volume expands.
• Take profit when momentum diverges.

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