Updated: Jul 15, 2020
Many traders are trying to predict what Bitcoin price will be like using technical analysis, support and resistance, and various types of indicators. But maybe there is a better strategy to earn more on Bitmex? Let's analyze several options and a strategy for how to grow you deposit.
Next step: READ how to scalp ETHEREUM ON BITMEX: https://www.ministryofmargintrading.com/the-best-strategy-margin-trading
Not only Bitcoin perpetual contracts on Bitmex.
While 80-90% of transactions on Wall Street are generated by robots, on Bitmex futures we still have lots of amateur bots and novices. This may be a chance. At Bitcoin itself, BitMEX has 3 contracts:
1) XBT perpetual - a contract that never expires, let's say it is Bitcoin's global price
2) XBT futures expiring in 3 months (currently 28 March)
3) XBT futures expiring in 6 months (currently 28 June)
It is worth observing and comparing these three contracts. The price difference between them is often changing and as investors are optimistic about the price of Bitcoin, futures price can be higher than perpetual. And conversely. A few months ago, futures were higher around $ 200 than XBT perpetual. Currently, the market is more pessimistic and the futures that expire in June are down $ 100.
How to make money scalping on Bitmex?
If we have more funds in your account, you can simply open such trades:
Futures JUN19 - Long
XBT Perpetual - Short
Unfortunately, even if we use Margin Cross, these two trades are counted separately so profits from one open position do not cover losses on the other. Therefore, if we want to speculate that the difference between these contracts will decrease in favor of futures, we must invest with the leverage at a maximum of 1: 5 and monitor the liquidation price all the time.
And what if you knew the price before? About a second earlier? How to scalp on BitMex exchange? What is scapling?
Scalping is all trades you do for a few seconds if there is some delay.
The difference between futures and perpetual contracts on Bitmex usually does not change much in one day. Futures follow Perpetual, but the liquidity there is much smaller, so interest in futures contracts is smaller. However, it is enough to trade with contracts worth 1-5BTC.
It is often the case that the difference is about $100 throughout the day and suddenly there is a huge move on the BTC market. Let’s say the price jumps $20 USD in a second. Observing futures, especially the longest futures, they follow perpetual, but often it has 1-2 seconds delay. It is enough to buy / sell by “old price” price, after which there is a huge chance that the difference will be $100 again, and we already have profitable trade straight away. And now either we can immediately close by limit / market order or if the move continues, we insert the stop loss order to zero and we rub our hands to continue the initiated move with the far take profit order.
This is one of the best and most secure scalping strategy on Bitmex. Of course, there is also a risk:
- too high leverage> 1:25 make us out of the control.
- after dynamic move, the price can sometimes go back and even begin to move in the opposite direction.
It is impossible to earn on every single trade. This strategy works good under the condition of bigger price movement like min. $ 10 in a few seconds and now you can wait sometimes all day, and a profit of $200-300 should please us. It's hard to describe an easier scalping strategy on Bitmex in one article.