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BitMEX Traders, rejoice! BitMEX Lifestyle is one of the Telegram crypto channels we followed from the start and have observed their progress. They evolve and grow nicely, and their trades have always had safety in mind. Recently, we received a small gift for you from their admin: an article full of valuable BitMEX trading tips. Today, we are happy to present three more to you.
To leverage or not to leverage BitMEX Traders?
In this topic, we will discuss something that is not perceived by many people operating on BitMEX: the illusion of “bigger profits” shapes the relationship between the use of the leverage they offer and most BitMEX traders. We often observe people operating with leverage without needing to do so. Furthermore, we will explain why:
For example, if you are someone who does not open many simultaneous operations and uses a low % of your balance per operation, do you really need to leverage as most BitMEX traders do? Instead of opening a 5x-leverage operation with 5% of your wallet, why not use 25% of your wallet at 1x? With 1x, you pay fewer fees. This can definitely make a difference in your pocket in the long run! Therefore, do the calculations and think if you really need to open each position with leverage. Or, consider if you can go 1x without compromising part of your position by paying high fees.
Stop-loss on BitMEX: use it to your advantage
If you are not an experienced trader, ALWAYS use stop-market on BitMEX! A stop-limit is a great tool, but if you do not know how to properly set your stop-loss to run smoothly, you may incur a much greater loss than you thought. Often, this is because your stop-loss will not be triggered if misconfigured. The stop-loss is an emergency tool and should be used in this way to contain your losses and avoid disasters. Do not be afraid to use it; use the “Stop-Market” and run away from bigger problems that can hurt most in trading.
A fairly frequent question among beginner BitMEX Traders is: Is there a way to set a stop-loss before opening positions? And the answer is yes, just set the stop-loss normally. The tip is ALWAYS to use the “Close on Trigger” option next to the stop-loss. Moreover, you can definitely set your stop-loss before placing an order. This will protect you against sudden spikes in the BitMEX trade.
Another interesting tool available in BitMEX trading is the trailing stop. You can set a gap between your position and the stop-loss. If your profit margin changes, the stop-loss automatically adjusts accordingly, using the configured margin. It is a great option for scalping and when you expect sharp, fast price movements.
BitMEX Traders One Last Tip
If you are one of those people who care too much about your trades, when you are in profit in an open position with a certain margin of safety, move your stop-loss to break even and sleep easy! This is generally a good way to act when you engage in profit-taking at multiple levels. Here are two routes to follow:
a) If you can contribute the screentime and actively monitor your trades, set up the stop-loss and all targets as take-profit orders. In this example, we take three take-profit steps; you might consider taking 50% out at take-profit 1, 30% on take-profit 2, and 20% on take-profit 3. Additionally, once target 1 is reached, you move your stop-loss order from the initially set price to your entry price. This way, you lock in your profits. You also bulletproof the trade, so you can no longer lose anything. On take-profit target 2, you move your stop-loss to take-profit 1. Then, you repeat this at each level. Warning: This requires you to watch your trades and have the screen time to follow it.
b) If you are busy and have to work and leave your machine, it is the safest practice to set up the stop-loss. You should take out 90-100% at the take-profit target 1.
Don't Bitmex trade every day… Analyze all the pairs instead!
Many people make the “mistake” of analyzing trends in the global crypto market by evaluating only Bitcoin price movements. In fact, we should evaluate the major pairs and draw conclusions from this. The market most often moves together, and the more currencies you analyze, the higher your hit rate will be. As a result, it is possible to perceive and anticipate reversals and better understand the market as a whole.
While trading on BitMEX, one should evaluate the prevailing trend across all pairs and trade in line with it; avoid betting without knowing the main trend. For example, near September 11, most of the pairs on BitMEX showed a clear bullish divergence in the RSI and MACD. They also defended very important medium- and long-term support.
In the following days, Bitcoin's price rose about 10%, and the other pairs began a beautiful race higher, with great profit potential. These profits included big movements from 20% up to 100% (without using leverage, imagine using…). We hope you have understood the idea.
By analyzing more pairs, you can understand what is happening much more clearly. With this information, you will know the best moments to enter operations. You do not have to stay in front of the charts every hour.
