The BitMEX Casino – 5 Gamble Strategies You Should Avoid
When people enter leveraged positions on the BitMEX they take the risk of getting liquidated. With regular altcoin trading, you still have the coins/tokens after all, but with the bitmex casino and a liquidation, you stay with a big red zero. Traders with a lack of risk management and/or knowledge in technical analysis tend to apply typical gambler strategies. Learn which they are, which risks are involved, and why you should avoid using them.
I repeat this post is not for using these methods. It is about reflecting yourself and about self-awareness with your trading behavior. If you don’t know how to trade, these methods won’t save you. Educate yourself or go with one of the approved trusted signal providers to spoon feed you the way to success.
#1 Martingale Double-Ups
The (Martingale) strategy had the gambler double his bet after every
loss,so that the first win would recover all previous losses plus win a profit equal to the original stake. Showing how this works in the Bitmex Casino: The martingale strategy has been applied to roulette as well, as the probability of hitting either red or black is close to 50%.
There are several kinds of ways implementing the classical Martingale technique. Let’s say
The Problem: The problem is that your total equity might be too limited. All it needs is one juicy losing streak to blow your entire account. Some traders do it with a strict 2-Step Martingale rule, but one needs proper mental stealth to be able to take a loss after the second stop. Furthermore, it could be a new uptrend/downtrend that has been established and your actual target gets out of reach. The Bitmex Casino will not care, just know this!
#2 Account Balance instead of Stop/Loss
It can be hard to take a loss, but it is part of your job as a trader. Still some doesn’t want to accept it and try to make use of a bigger balance to average their ass out of a red position. This means, you enter the position with a properly calculated balance, like 1-5% of your total account value for example. Means you still have 95% sitting in your BitMEX account. If the position goes against one, the bitmex casino gambler would feed more into it near the liquidation price to avoid thus. By doing this the average entry prices rises and the chances increase, that price will come down to breakeven, so you can leave the position without a loss.
The Problem: Especially in
#3 Candle Martingaling
If you have no clue from technical analysis you might be teased to make use of the simple odds of the candle color. There are two ways the patient gamblers play this: with the trend and countertrend. The first is to start buying or selling the newly starting color depending on the color of the last one. 4h chart, candle closes green. The gambler buys a small amount of the next starting candle and takes profit/stops out at the end of it. If in profit, he stays with the same amount, if in loss he doubles up on the next candle. Some think this works better counter trend, as you likely double up faster and therefore get faster bigger orders. When in the bitmex casino grab a drink, might as well if you are going to trade drunk anyway!
The Problem: It is never sure how price develops. Prices can go parabolic and grow without changing the color for a long time. Also, this technique needs very patient hands and a strong mind. Especially, if one reaches the 5th or 6th double up and the account balance melts away. On top of that, for all the patience needed, the rewards can be very small for a long time. Big rewards only come once the risk increases.
#4 Going Long AND Short
The Problem: There is still a good probability you get wicked out of both positions by a light saber candle. Double stop/loss. UGH! The bitmex casino gets you again!. Furthermore, you really need to sit in front of the screen, best with two screens and observe price all the time. Sometimes stop/loss don’t trigger, even as market stop loss if the price goes ham.
#5 The Bitmex Casino Yolo Method: All-in – Go big or go home
Yolo! Go big or go home – you read that quite often in the BitMEX trollbox and this is the ultimately fastest method to burn your account. Very High Risk / High Reward teases still a big portion of traders. Many gamblers manage exaggerated position sizes like this if the trade goes against them. Going all in. Price pumps against them. Waiting for a calm down / retracement. Takeing 50% of the position out, accepting a 50% of the total loss. Uses the released funds for an order near liquidation price and hopes for wick action or a retracement to breakeven.
Many folks are searching for the single big shot that evens out all their loss they acquired before in the bitmex casino. However, the experience of many many many traders which have been in the same situation as you, have shown if you start this, you will see a massive series of losers. It is like magic, all-in-positions are really like having a badass magnet pulling price to stop/loss.
The Problem: Like in the other examples, you simply don’t know how the price will develop after all. It might just not retrace when you need it – blown accounts are the consequence.
How to do it right in the Bitmex Casino?
The most important thing is