Bitmex Compound Bot is a trading algorithm which makes small but frequent incremental gains and compounds them. Usually it will open around 5 positions per day and set the exit trade at the same time. This means each trade cost is only 0.05% fees total as we use a market entry followed by limit close. In case the market turns against us the bot will automatically deleverage to lower the average entry and prevent a liquidation Whilst the wallet balance may go down slightly as this happens, no single trade is ever closed at a loss...not one!
It is after 3 months or so that the magic really starts to happen though as that is the point when the compounding effect starts to become apparent. The longer the bot runs for the greater the % gain each day vs the initial investment.
To explore the potential of compounding this is a useful tool...
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php . In the first 55 days of our x10 challenge we took our balance from 0.0868BTC to 0.1087BTC which is a gain of around 25.23% and an averaged 0.458% gain per day after fees and borrowing*. A daily gain of 0.458% doesn't sound like too much compared to some of the gains in crypto right? Well plug those figures in to the compound calculator above with daily compounding over a year or two years….or five!... That’s the POWER of compounding!**
*Check out our public x10 challenge thread for updated balance/winrate since we began (14.01.19. With 0.0868BTC)
https://t.me/bitmexcompoundbot.
**Past performance is no guarantee of future performance.
FAQ’SCan you explain a bit more? How do you avoid closing trades at a loss?When the market moves against us and the price is below our average entry, by making a newtrade at the new lower price and closing in profit vs the entry for that particular trade we lower our average entry and move the liquidation price further away.
This costs us some of our wallet balance so we realise some loss..but at the same time we realise a small profit for that individual trade. If we do this often enough (usually between 4-6 times a day) then the average entry moves near as damnit to the current price....
..Once we are near that point, even if the price doesnt go back up we begin building the wallet balance again. However the price often does go back up in which case we also realise the profit from the original trade/s which went underwater.
We dont use stop losses, instead the algo just manages the whole position until the average entry is close to the current price. At that point we start realising profit on the whole position without having to close a single trade at a loss. The best bit about this is that it makes us immune to the stop hunts and "Bart" formations that Bitmex is known for...whales cant get us!!
Looks great!....can I run the bot?You may be in luck! We are inviting a beta test team to start a free 3 month run of the compound bot starting this April! Details -
https://docs.google.com/document/d/19gRAYzJXWmkvrzJxNifqpH3h5sDJ8Diw-gBr-cd-2BU/edit?usp=sharing Eventually the bot will be available to everyone but in the meantime thank you for your interest and your support in our x10 challenge......To our mutual success and onwards and upwards! 📈😀
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