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.
Martingale Double-Ups
Source: Wikipedia
The (Martingale) strategy had the gambler double his bet after everyloss, 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!
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 don’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. This means you still have 95% sitting in your BitMEX account. If the position goes against one, the BitMEX casino gambler will feed more into it near the liquidation price to avoid this. By doing this, the average entry price 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 crypto, there is always the possibility that the price will go parabolic and not come down to break even anymore. You are feeding a bleeding position and pulling your wound apart more and more. This method becomes even more dangerous when used with a leverage of x10 and more.
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, the 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, you 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.
Going Long AND Short
Many ingenious traders came to the idea of opening up a second BitMEX account to take the opposite of the actually traded direction to overcome the lack of understanding of technical analysis. Indeed, there are legit methods out there to do it in a relatively safe way if the price ranges tighten and a breakout is in the oven. However, it needs proper preparation, awareness and screentime, a good understanding of math and support, and resistance to calculate the stops, the right charts, and still tons of luck.
The Problem: There is still a good probability you get wicked out of both positions by a lightsaber 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 the price all the time. Sometimes stop/loss doesn’t trigger, even as market stop loss if the price goes ham.
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 toolbox, 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. They are going all in, and price pumps are against them. Waiting for a calm down/retracement. Taking 50% of the position out, accepting 50% of the total loss. Uses the released funds for an order near liquidation price and hopes for quick action or a retracement to break even.
Many folks are searching for the single big shot that evens out all the losses they acquired before in the Bitmex casino. However, the experience of many, many traders who have been in the same situation as you has shown that 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 stoploss.
The Problem: Like in the other examples, you simply don’t know how the price will develop after all. It might 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 to use proper risk management. The Universal Crypto Signals guys have this under control.
