In simple terms, trading bots are software programs that directly interact with a financial exchange (frequently using API’s to collect and interpret any relevant information) and places a sell or buy order on the user’s behalf, which will depend on how market data has been interpreted.
These bots make a decision by tracking the price movement on the market and reacting to the set of pre-programmed and predefined rules. In most cases, trading bots will analyze the actions on the market, such as orders, volume, time, and price, yet they can also be programmed in such a way to suit the preferences and tastes of the user.
The BitMEX Trading Platform
Founded by GDR Global Trading Limited in 2014, BitMEX is one of the popular trading platforms that operate in many countries across the globe. BitMEX, which stands for Bitcoin Mercantile Exchange, is among the largest of the Bitcoin trading platforms, with trading daily volumes of more than 35,000 BTC, and an impressive trading history that amounts to more than $34 billion (worth of Bitcoin) since inception.
Unlike other types of trading exchanges, BitMEX only accepts the deposits that come through Bitcoin, which users can then utilize to buy other cryptocurrencies. BitMEX specializes in advanced financial operations which includes margin trading, which involves trading with the use of leverage.
How To Sign Up With BitMEX
To sign up and create accounts on BitMEX, the user is required to register on the website. The registration process asks the user for their email address. A confirmation email is then sent to verify the user’s account. Traders have to be 18 years-of-age or older in order to sign-up.
How To Use BitMEX
BitMEX allows registered users the option to trade with different cryptocurrencies against various fiat currencies, including the Japanese Yen, US Dollar, and Chinese Yuan. BitMEX also allows its users to trade with several different cryptocurrencies such as Bitcoin, ZCash, Tezos, Ripple, Monero, Litecoin, Ethereum, Dash, and Bitcoin Cash.
The BitMEX trading platform is easy-to-use and intuitive for users that are already familiar with markets that are similar.
Once a user has signed up on this platform, by clicking on the Trade button, all the necessary trading will display underneath. When clicking on one of these instruments it will open the Orderbook through bitmex bot, the recent trades, and an order slip (on the left). The Orderbook displays 3 columns, which include the Bid Value of an underlying asset, the order Quantity, and the USD value associated with both long and short orders.
This trading platform also allows users to change the widgets to suit their viewing preferences, which offers complete control over what the platform displays. It also comes with a built-in feature providing for TradeView charting. This provides several different charting tools which are regarded as one of the benefits of using this trading platform.
Once a trade has been made, any of the orders are easy to view on the interface of this trading platform. There are also tabs where a user can choose their Active Orders, view the Stops in place, check on the Orders Filled (partially and total), along with the history of all the trades. On the Stop tabs and Active Orders, traders are able to cancel orders by simply clicking on the “Cancel” tab. It is also possible to view all the open positions along with whether they are red or black.
BitMEX uses a technique known as auto-deleveraging which ensures that the liquidated positions can be closed, which is made possible even in the volatile markets. Auto-deleveraging means that when the position is bankrupt and there is no available liquidity, the side of this position that is positive will deleverage, in the order of leverage and profitability, the leveraged position that is the highest will be the 1st in the queue. Traders will also be shown where they are positioned in the auto-deleveraging queue, when necessary.
BitMEX provides various types of orders for its registered users:
- Limited Order
This order fulfills once the given price has been achieved.
- Market Order
These orders are executed at the “current” market price.
- Stop Limit Order
Similar to stop orders, yet it allows the user to choose the price of this Order, as soon as the Stop Price has been triggered.
- Stop Market Order
These are stop orders that are not entered into the Order Book, they will remain invisible until such stage that the market has reached the trigger.
- Trailing Stop Order
This order type is similar to Stop Market orders, but the user is able to set a Trailing Value used for placing the Market Order.
- Take Profit Limit Order
This option allows the user to set the “target price” on a specific position, similar to the Stop Order. However, with this option, it has to do with making gains, as opposed to cutting losses.
- Take Profit Market Order
Similar to the Take Profit Limit Order, but with this type, the order that is triggered is going to be the market order, rather than a limited one.
The Mexbox Trading Tool
Mexbox is a software tool that is primarily dedicated to the BitMex platform for trading perpetual contracts. Since you are required to enter your Bitmex API, this bot is only able to conduct trades over the Bitmex exchange.
Mexbox offers a way for users to leverage the benefits of AI which can help to increase the users’ profit potential. Here are some of the advantages of using Mexbox:
Once you have entered your Bitmex account API keys, Mexbox is able to manage your trades and account for the most favorable profits.
You are able to configure 2 different accounts, 1 for Short Scalping and 1 for Long Scalping, which can help you to take advantage of each side of a market.
Unlike the “hit and run” bots, Mexbox is a very powerful tool as the bot entries are all powered by AI.
The software uses a proprietary algorithm that is equipped with AI that detects the most favorable entries for scalping.
There are no security concerns since your API keys are locally stored on your own PC.