Hallelujah – a working Bitmex auto trader
When we started our Bitmex Signals post, we have been amazed by the quality we have been able to find between all those crap channels. One that impressed us very much has been Margin Signals. They are not your first choice if you chase the fast money but are swing trading the larger moves, which is very much appreciated and pretty lucrative in the long run. Sure, you get fewer signals and stay within them for days – but this can be very rewarding. Patience pays one more time and betters your Risk/Reward ration in comparison to try to scalp Bitcoin all the time. However, recently I was annoyed when I missed one of their gem trades. You cannot sit in front of Telegram all day and wait for a signal to appear. This is not a real problem for day trading channels, as they spit signals more often, but with Margin Signals, the struggle is real, and I was sad for each one I missed. And then this Aussie timezone… However, they came up with a very convenient solution, which I want to show you today: They coded an auto trading bot for their bitmex signals. And that’s a darn good one!
As you might know, I am a conservative by nature. Conservative with my trades and money and I want to reflect that in my posts to inspire you to go the same route. It is the only way to survive in trading; everything else is just like popping an ecstasy pill followed by a dramatic day after. If you lost everything you won so glorious the day before, you know what I mean. Would I use a fully automated bot, trading on its own behalf? Never ever. Would I use a semi-automated bot by a trusted signal channel to push their trades via API to my Bitmex account? Yes, I’d try that – with an arched eyebrow. Giving an API key away means you have to trust the trader with your funds. So before considering it, I would spend some time in their chat and get a feeling for the guys behind Margins Signals. Personally, I have a good feeling with them and gained confidence in them with the months I spent in their channel. I like them, value their work and knowledge, so I was willing to test.
Reasons to Execute Bitmex Signals per Auto Trader
There are plenty of reasons why we get so many requests for auto trading solutions. We can feel the urging need for such a tool and why it comes in handy to many of you. However, despite the charm and attraction of the idea itself, it is essential to be aware. Scammers are always right next to you in crypto, and you should never forget about this fact. We would never promote a bitmex auto trader, which leaves the hint of a doubt that it could be a scam – too many of you guys have been scammed already, and we get quite a few messages like the one below:
We are a bit proud, to be honest, that we have been able to find you a handful of providers which can deliver reliable results and are not a scam. You can count on us – we stay in all these channels and speak to the admins a few times a week. Margin Signals, to name the one that offers the auto trading solution, are rock-solid and one of our favs. Once you scroll through their VIP chat room, you will see customers that became raving fans. Besides all of that, let’s go through the reasons why an auto trader for bitmex signals can make sense and if it could be something for you:
- you don’t have the time to sit the whole day in front of Telegram and waiting for signals
- you are challenged with all the configuration options Bitmex offers
- you are a novice trader and don’t want to make a mistake
- you are challenged by your emotions and can’t stop amending orders or revenge trading
- you simply want a managed account by pros
- Aussies have a retarded time zone for the most other continents!
How does the Bitmex Auto Trader work?
The Bitmex Auto trader is based on an API connection to your Bitmex account. You can generate such an API key within your account settings (they won’t take your key if you have the withdrawal option enabled on it). You can define which abilities the key shall have you pass to Margin signals, so basically, you don’t tick “Withdrawal” and they cannot run with your account funds. Once the key is created, they have access to trigger your account into any trades that is published by their Telegram channel. Building the needed API key is as easy as 1-2-3.
All criteria are specific to that trade, and they can manage the following items with the bot:
- Amount of account balance at risk for the trade (10% max)
- Entry Price
- Stop Loss
- Limit and Market close positions for quick or predetermined exits
- Cancel and re-enter a stop loss (used to “Bullet Proof” positions and secure profit
- They can also trail the stop loss as the trade progresses
This isn’t some Bitmex bot, which triggers entries based on a few indicators and scalps small profits or averages down your buy-in if the trade goes bad…. This is a fully customized system that will set your trade based on the individual trade set up. Fully managed end to end by the head trader of Margin signals. Have a look at their back office for executing the orders:
Personally, I often question the security of these tools and am afraid that the provider made use of a cheap coder from a 3rd world country which does a sloppy job for some quick dollars. Gladly, they went another route and implemented a simple but highly effective solution, which even enterprise companies offer to their users: They have a singular website which is strictly IP whitelisted so there can’t be any attacks or hacks, only a selected few have access. The team can see open positions as well as any orders the Bitmex auto trader makes. This means they can control the trade(s) from start to finish.
The Bitmex auto trader system has no limit to the number of users it can control; they can just add another node to take the load.
About Margin Signals
The group that offers this bitmex trading bot comes from Australia and has been reviewed here, we vouch for them with our good name, but apparently, we cannot guarantee anything return-wise. Past performance can’t be used for future success predictions. However, their track record looks very good concerning consistency and success rate; hence we issued our Trusted Signal Provider Seal to them some time ago.
But let the numbers talk for us!
The Results of the Automated Trading Journey
Technically rock-solid trades shaped the first month with the auto trader. You can download their results for August here: Trade Results August 2018. If you follow the numbers, you can see what they are after – long, juicy swing trades. Between many profitable trades, you will also find two big fails in the report, which happened while the, let’s call it “disturbing” Bitmex maintenance, where stop-loss and even liquidation prices have been exceeded. Well, that’s the risk of being in crypto – things happen you never would have thought of, there is always the next surprise. However, we’d suggested them to close down trades in the future when maintenance is due, and they confirmed – it was such bad luck, though they’d never hide such things. Transparently they communicated and discussed this issue with their community.
Here is a screenshot of a live account that makes use of the automated trading solution on bitmex, started with a half Bitcoin, end of July:
You will have ups and downs in your account, that is usual with every investment route you chose and just organic. What counts is the long-term vision and overall profitability. Margin Signals uses strict money management rules and takes out the emotional challenge from you not to overleverage or oversize your position. It is not about showing a big row of winners, but to show off consistent growth – slow and steady wins the race and once the compounding effect kicks in – the sky is the limit.
This Bitmex Auto Trader is not for you…
- …if you are looking for fast money
- …if you want to trade yourself
- …if you are out for getting a “kick”
- …if you want to play in the traded account yourself
- …if you plan this for a short-term
It is crucial for this operation that you provide an API key for a funded account, solely traded by Margin Signals (you can have multiple accounts with Bitmex) – if you log in and place your orders, interferences will mess up things. The initial deposit should not be too small, as the leverage they use is confined to limit your risk, plus they trade alts on Bitmex often (where contract prices can be much higher, like on ETH). This auto trader and the trading concept behind is made for the long-term vision and should be seen as an investment. You enable professional traders to trade an account for you by paying a fee – that’s the magic behind and if you want to enroll, it is highly suggested, to have at least a few months in mind – there are no overnight riches to be found!