Live Review Scavenger Bitmex Bot

Scavenger Bitmex Bot – Review on Live Account (incl. Interview)

in CRYPTO TOOLS/TRADING CRYPTOCURRENCIES

Before I start reviewing the Scavenger Trading Bot for Bitmex, can we pleasssssse have this “Tron (the movie, not the coin)/Automan/80s Sci-Fi Neon Light – Feeling” once again, please? Because the website is very reminiscent of this visual vibe and I just love it.

Awww, thank you for glowing, Automan!

Scavenger 80's Bot
❤Scavenger Bot’s Website Design❤

By the time writing this line, I am yet about to test the bot, but the design got my nostalgic heart captured already. The Don Johnson within me got activated, and wears sunglasses at night -but yeah, I leave it for the good now.

More interesting, many of our readers wanted to know about the Scavenger Bot for BitMEX and wrote us on Telegram and per email to ask us if we could check it. Usually, we are not too much into automated crypto trading strategies, so we should not be your #1 address to ask for something like that – but, yeah, we are all around when it comes to hyped products and want to give our readers what they want – because hey, what are we without you?

Ok, it is an untouched topic for me and since the demand is there, I will try to conquer it with this article. Let’s sit down with and have a beer with our new electric friend (Nah, not this kind of – control your filthy thoughts!).

Disclaimer

This article is for educational purposes only. We are no financial advisors. Do not make investment decisions based on this informations. The information provided from Smart Options is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance. Please do your own research and let never anyone trade for you. Please read this disclaimer and leave the website if you disagree with it.

When I started the research, I found some assumptions in chats that the Scavenger Bot is a modified copy of another Bitmex Bot and the work behind shall be not unique. Well, I am no coder and cannot judge about it. Of course, if true, I’d find it unethical and immoral – intellectual property must be protected. I got in contact with both parties to find out more, the Scavenger bot team and the guy behind the competing bot. Unfortunately, the competitor was not very positive minded about an article in general, so I left it for the better. Life’s just too short to spend time with harsh people. I will go back to the topic of the intellectual theft accusation later on in this article.

How to set up the Scavenger Bot?

The Scavenger Bot is available in open Beta and the website does not have many functions to play with. Basically, the site allows to set up the bot and nothing else. It is upon one’s risk appetite to decide if he/she wants to have a beta software playing with a real account, I’d never recommended to anyone to have any untested full auto-operated bots on main accounts, so the decision is really up to one self.

How much equity should a Bitmex account need to test the Scavenger Bot safely?

If we don’t want to run it on Testnet, as it does not fit our excitement needs (and, to be honest, it does not really work, due to the low liquidity on Testnet), it is better to create two accounts with an amount of 0.2 BTC on it, this way the risk exposure is limited. The problem with testing it on a real account is, that the contracts run on cross leverage. Therefore it is better to have a minimum amount of 0.2 BTC per direction as this allows us to use cross leverage to our benefit and minimize risk. The scavenger bot itself runs also from with a minimum amount of 0.05 BTC though this will increase our risk drastically and is not advisable.

Back to the actual setup, which is dead easy, but might come with one hurdle.

  1. We create a second Bitmex account (of course by using our affiliate link to pay fewer fees and to bring us closer to our beach houses in 0.00001 sat steps).
  2.  We create an API key and secret in our Bitmex account here. On the first account, we call it Scavenger_long and on the second Scavenger_short for example.
  3. Set up one bot as “Long” account and one bot as “Short” account here on the Scavenger site – each with an API key from one Bitmex account (not both API keys from one Bitmex account, would interfere).
  4. Now comes a tricky part, if weactivate the bot, we might get the status message: Unable to Retrieve Position. There is an easy fix for that, but one must know how: To verify the long bot simply buy ~17 contracts per market order with cross leverage. Once the order is filled we start the verification process for the bot again. For the short bot, we sell ~17 contract per market order and start the verification process again. The initialization of the bots can take up to 5 minutes.

Anything else is pretty good explained in this video:

If everything is set up correctly, we want to see something like this in the end:

The Long And Short Scavenger Bot for Bitmex
The Long And Short Scavenger Bot for Bitmex

How does the Scavenger Bot operate?

Basically, they work different as some might expect it – this is not a bot anywhere similar to the auto trader by Margin Signals, which is operated by human traders replicating their trades to the customer accounts. These are scalping bots, operating after a configured algorithm, placing buy/sell orders via API on our BitMEX accounts. To be crystal clear, this bot will not enable us to ditch our day jobs, it just might add up a little to our equity in the long run, which might become noticeable with the help of the compounding effect in the best case.

Once successfully connected I recognized buy orders on the long account and vice versa sell orders on the short account. In a nutshell, it places tiny orders for a few contracts (in my case around 80 per buy step) on cross leverage. For the long bot, for example, if the price moves further down, it buys more from the same size and setting, while putting a take profit order always 5-10 dollars away from our average entry (the take profit points might be variable/ relative to the buy entries and market moves and based on  defined percentages/ distances to the averaged entry price). Thing is, it is very likely that this small distances will be reached over time and the buy orders move along with the price, constantly averaging our entry. The second (short) account gives us added security as it hedges against the long account, working down the same methodology. The contract sizes remain often relatively small, but we cannot compare the trading to usual swing trades.

This is more like fully automated HFT trading (haha, ok not really HFT, maybe “The Little Man’s HFT”, like very little), orders come and go and build positions over time, letting them grow slowly and gradually – if we try to get the methodology with thinking like “buy 10k contracts at 6500, sell 10k contracts at 6650” – style of mentality we’d go nuts on bot trading. Honestly, it is fun to watch it trade, it challenges our patience and forces us to switch into an observer mode, which can be pretty relaxing.

Is the Scavenger Bot another Crypto Scam?

Yes. No. Yes. No. YO! I cannot conclude a final decision right now, but I frankly tend to a “No”. The bot itself might be able to generate slow and steady growing profits – I will test it and update the results of our accounts in a monthly update post. Let’s see where the journey leads to. If we don’t enable the withdrawal checkbox when creating the API key it is at least safe to say, Scavenger Bot won’t be able to rob ouer account (also I believe it would be technically difficult, as 2FA is needed with Withdrawal option). The team mentioned also to me, that the system declines API keys that have “Withdrawal” enabled, which I did not check.
Having seen gazillions of “passive income” scam bots in the FX/Binary Options, I have been very skeptical of course,  though they work on a different base. Most are promoted by brokerage affiliates, just having the goal to make us send our first deposit (the point where they get paid with a commission often).

Reading the community on their Discord the user base is very satisfied with Scavenger Bot and this is hard to fake and a very good sign. Some might ask, why I even think out loud about scam here and not just leave it for the good. I want to show off, how to do due dilligence – we put our money, into the hands of a product by strangers. Of course, we want to figure out first if there are any scam indicators – this is how we should plan every move in our crypto life.

So, can this bot liquidate our account? Right now it acts relatively responsible with pretty small positions. While Cross orders can be ultimately very risky on “normal sized” positions, they can be liquidation proof for small positions. The hedging part adds up to the safety. I had not the chance yet to observe how the bot is configured to act in times of high volatility, though I guess positions could be added on fast a pace in such an environment, which would increase the risk. In ranging markets it does a great and safe job, scaling in and out, taking here a percent and there a percent for slow and steady growth, doing the compounding limbo.

Our risk estimation of the Scavenger BitMEX bot:

Risk of account robbery:  very low (Bot Setup makes an unchecked “Withdrawal” option mandatory)
Risk of account liquidation:  possible in theory, mediocre risk in praxis

UPDATE: Our estimation was wrong, unfortunately. Our long test account got liquidated with the first violent downside move. 

While I will update about the progress, I found a pretty decent log of a current user in their discord channel: You can see his past results in this google docs sheet. Scavengerbot.io itself offered two very comprehensive tracking sheets (1 & 2) until the official tracking is done on the website.

In regards to the code itself behind the bot, there is indeed a bot creator that claims that the Scavenger bot is a scam in terms of theft of intellectual property. I cannot estimate this factor, but the owner of this bot seems to be pretty angry with the Scavenger Bot guys. He showed off some screenshots how Scavenger Bot has copied their FAQ text word by word and I can understand his anger in this case, on the other hand, though you can find that pretty often when companies publish Beta’s of similar existing products. Anyways, here is the source. The owner of the competing bot mentioned they’d run the Scavenger bot as a modified copy of their own autoview stuff. To make a long story short, we don’t believe in this story and send the autoview support a request and asked about their opinion. We will update this article once we have a reliable reply. Right now, we tend to not to believe that the Scavenger BitMEX bot is a copy of any other product on the market. On top of that, we installed the competing bot and it created right away 100 orders, so it acted completely different compared to the Scavenger Bot. The claims might be therefore baseless, but we are waiting for the support reply.

Update: We just got a reply by Auto View – everything seems to be in order:

Interview with the Scavenger Bot Team

If I am unsure about something, I usually tend to simply ask – this is the best way to get a feeling for the person behind a product. So I simply send all our doubts and critical questions over and see what they have to say…

Smart Options.io: Automated trading with other people’s money bags is a tricky thing. Why should people trust the scavenger bot?

Scavenger Bot Team:  One thing we teach in our discord of over 13k users (Editor’s Note: Crypto Gnome on Discord) is to do their own research and due diligence. There is no withdrawal access. We are a 100% transparent group. And strive to educate anyone beginner or Advanced trader or crypto pioneer! I would not consider scavenger bot as a business per se, but more like a community striving to reach a common goal with automated trading on leveraged exchanges.

Smart Options.io: I heard often the team behind scavenger bot is very reputable. Tell us more about you, please.

Scavenger Bot Team: The Crypto Gnome community has been around as long or longer than any other crypto automated trading community. It is a Discord community where people can learn about many things crypto related whether it is mining, masternodes, manual trading, bot trading, and blockchain/crypto education in general. We don’t tolerate spammers or scammers and have created a safe place for anyone to learn and grow together! We have 3 developers now which have really great credibility from their work experience. “bigcountry” is our lead developer and has 20 plus years in system infrastructure and coding as well. “Dragonlady” is a developer of 2 coins (one being Worx coin) and also has 30 years of experience with system penetration and security with Linux infrastructure.”Oneezy” has worked at Hewlett Packard and with Charles Schwab on their development and is a killer in the GFX field. “CryptoGnome” and “2legit” have both a lot of trading experience and manage many different projects outside of their regular careers resulting in many relationships over time from networking. Support and customer service is where we also do well. Understanding what people want is key to us. “CryptoGnome” is also a YouTube influencer with about 16k subscribers on his channel. In addition, we have some community members that are making iOS and Android apps for our cell phones.

Smart Options.io: How does the bot configure position size, leverage, and other details?

Scavenger Bot Team: Scavenger Bot’s strategy is a two-prong approach between general market making and several indicators such as Volatility, Momentum, Strength index’s, and volume more commonly known as VWAP.
Scavengers main goal is to remain market neutral as much as possible so that it can take profit when the underlying contract makes a move. 

Here we have a video for you, that explains the process:


Learn more about the strategies we use here:
http://www.optiontradingpedia.com/synthetic_straddle.htm
http://www.optiontradingpedia.com/free_long_straddle.htm
https://en.wikipedia.org/wiki/Market_maker

How does the bot know how much to buy? Well, it is based off your balance and risk percentage. Risk adjustment will be a feature you can control in an upcoming release.

Cross-Margin, also known as “Spread Margin” is a margin method that utilizes the full amount of funds in the available balance to avoid liquidations. Any Realised PNL from other positions can aid in adding a margin on a losing position. This margin method is useful for users who are hedging existing positions and also for arbitrageurs that do not wish to be exposed on one side of the trade in the event of a liquidation. Note that by default all positions are initially set to “Cross-Margin”.

Smart Options.io:  Do you plan to add any new strategies to Scavenger Bot?

Scavenger Bot Team:  We are currently testing and about to release our new strategies. In near future, we will add many altcoin futures on BitMEX as well. You can see we already have been testing ETH, XRP, TRX, and ADA. We have some smart buy logic being added to the initial position being started. Also better “take profit” and “DCA”- strategies, which will be either an add-on option or a separate strategy to choose from altogether. All this is voted on by the scavenger team while testing. Once the team concluded a decision, we will add it into live production for closed beta members and after that onto open beta members. We also have a solution for when the market is flat and with no volume in the oven. It is ready to be added to the code for testing. The best thing about having a community bot is to facilitate the amazing community members by sharing their ideas and strategies to implement together towards our common goal of having a really efficient trading bot on leveraged exchanges. As you may have seen in the discord in the gnome lair, we typically do this for any bot or tool in the market that we have approved and made available by screening what’s legit or not.

We are constantly testing live new strategies that will be added to future releases as options, check out our roadmap for more info!

Smart Options.io:  Your pricing model is very unique, how do you deal with customers not paying their commission?

Scavenger Bot Team:  As you may see we went on a limb to put trust in the community and obviously may have abuse attempts but we feel strongly about not having upfront costs or large payments with nothing to show but losses or balance that could be used to work for you while using a bot. We believe in performance-based payment structures and felt that a lot of programs seem to be an outright money grab. By using a performance-based payment model, we can show off to have skin in the game and continue development through the whole process. We participate from the gains our bot makes you, you participate from the new developments we can achieve with the earnings – a classic win-win situation.

Smart Options.io: Which features are planned, we are currently beta – what can we expect for the future?

Scavenger Bot Team:  The ability to change your risk level, coin selection, positive funding side trading only, support/resistance smart safety, Smart DCA, and Smart Take Profit. We have a UI developer working hard on the UI to make it as smooth as possible with an epic design. He has a great experience from HP and Charles Schwab UI development as well. One of the devs specializes in system penetration and security. We have some other things that are not gonna be shown or talked about until release time. Scavenger also takes any suggestions as they come in and we do daily stand up meetings to talk about fresh ideas. They are pushing into our backlog for later or even into immediate implementation if they make sense!

Smart Options.io: Have there been any trading catastrophes yet which cost your users significant amounts of money? And on the other hand, what is the average gain per month until now?

Scavenger Bot Team:  In early closed beta while we were coding we found a bug in the code that allowed the position to flip the other direction but “bigcountry” (editor’s note: a Discord username by a team member)  found fixes for this early on.

No. No users have made losses until now. The only loss that is incurred would be holding a position and being against funding however when this position sells all users have made more than the funding cost.

Smart Options.io: What is your point of view of the circulating assumptions that Scavenger Bot is a slightly modified copy of a competitor on the market?

Scavenger Bot Team:  We prefer to keep things classy and professional. We will not react to any smear campaigns or any sort of spamming, slander, or defamation. Our community has been around for a while and is here for the long run. We want to grow together and learn together. Toxicity on the internet is everywhere and we are a group of down to earth people, that want to learn and grow together without any negativity. We are not surprised that this has happened due to the size of our community and the success we have experienced. If people do their research, they should be able to see through the slander.

SmartOptions.io: Thank you very much for your time, guys!

How much do I have to pay for Scavenger BitMEX Bot?

You don’t pay anything upfront, but you will be invoiced weekly for 15% of your gains if you don’t pay, your account becomes deactivated – a pretty uncommon pricing model, we will see if this can stand the test of time. It works like that: You simply get an email with a link to coinpayments to pay the due amount. Here I see a problem once the word spreads, an email address can be spoofed pretty easy, so before you pay, you have to triple check its authenticity and if username within the email, as well as that the total amount to pay matches your dues – maybe even double check on Discord with them etc. This could become an easily exploitable security concern with the success of the bot in my eyes.

At first, I suspected the scam here: As you have to set up two bots (one long and one short), one might be in profit and one in loss after a month. My thought was that they just count 15% profit share just for the winning bot – this would make the real costs highly intransparent and might leave you with a loss, even if the month itself was profitable by the trades – but I was wrong. The 15% is account based on all trades issued by the bot, so it is a very fair and transparent performance-based solution. This is no fast cash grab by greedy devs, this is performance-based which motivates the Devs to deliver ongoing updates and performance tweaks as they will be directly rewarded. I can imagine this business model will change over time, so what I do is I get it while it’s hot.

The Verdict & Long Term Live Review of the Scavenger Bot on Bitmex

At the current state, it is hard to pull any verdict about the Scavenger Bot for BitMEX. Will it stay profitable in the long run? Is the code really solely the work by the CryptoGnome guys or partially stolen and does that really matter if a product works fine? As said, I have several requests running to make a final conclusion, but right now, I want to track down the following bullet points:

  • The bot works.
  • The bot works in a reliable manner, without exaggerated positions or any other wild behavior. It has been made with a good understanding of the markets.
  • It acts completely different as the competitor’s bot who claims it might be a copy.
  • The team of Scavenger Bot is pretty transparent and have been supportive to answer all our questions.
  • No upfront payments, make it easy to simply test it out. Even on Testnet to be sure it does not do any bollocks.
  • The invoicing process might need an upgrade to protect the customers from phishing scams.
  • We will let the bot run long-term and our accounts and report monthly on the progress.
  • If you want to get in contact yourself, Ojust join their friendly and open-minded community on Discord here.

Our final verdict about the Scavenger Bot is positive and it might be a good weapon in a crypto enthusiasts arsenal to grow passively Bitcoin holdings, in a slow and steady mode without much need for tweaks or interactions. You can learn more about the Scavenger BitMEX Bot here.

UPDATE: Our test phase has shown, that the scavenger bot was able to produce slow and steady tiny gains in ranging markets. However, with the first violent move south our long account got liquidated. The method Scavenger bot uses needs really big accounts to hold through very volatile times and we would never recommend to run an automated bot on sizeable accounts.

Scavenger BitMex Bot Logo

 

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2 Comments

  1. Scavenger Bot has been amazing for me personally! I’ve been running the bot for a little over 1 month and have seen steady profits. Long bot I started off with 0.0527 BTC, Short bot 0.0622 BTC, and now my Long bot has 0.0693 BTC and Short bot 0.0836 BTC.

    Long Bot Profit: 0.0166 BTC | $100.36
    Short Bot Profit: 0.0214 BTC | $129.38
    Total Profit: 0.038 BTC | $229.74
    Daily Average: 0.00095 BTC | $5.74

    Not too shabby for doing nothing I’d say! And the great thing is, w/ the more money you put into it, the more you make. I very much look forward to what the Scavenger team comes out with in the future!

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Thank you, Darling! Let's stay in touch so we can feed with more Crypto frenzy!