How to Get Rich With BitMEX – Vito Scaletta [BitMEX]

Here are the rules and principles for getting rich with BitMEX;

Use stop orders

You need to decide on which level your trade or analysis will be invalidated and put a stop loss order to that level. Don’t bother to give a little room for wicks caused by volatility, you’ll just end up losing more.

Set your targets

Depending on your analysis, set one or multiple take profits orders after you entered a position. Do not ever tell yourselves that “I will close manually when I want”. Know your targets and set it immediately after you created a position.

Manage your bankroll

I myself, only risking 1/20 of my BitMEX balance by using 10x leverage on one trade. You may see it as a conservative approach but when you check out the math below, I am sure you’ll like it.

In a scenario of Bitcoin price being $10.000 and I have 10 BTC on BitMEX;

When I open a long position of $160.000 with 10x leverage, this will cost me $16.000 worth of Bitcoin (1.6 BTC). If the price of Bitcoin increases %10, my profit will be $16.000, fees not included. This will increase my BitMEX balance to 11.6 BTC, which is a %11.6 increase of balance in one trade.

What if the price hits my stop order?

For example, I put a stop loss order to a price that %3 lower from my entry price. If Bitcoin price retraces %3 from $10.000 and hits my $9.700 stop order, I will lose approximately $4.850 which is 0.5 BTC at $9.700. My new balance will be 9.5 BTC.

This way, I will have the chance to create 19 more positions and I will not bankrupt because of one bad analysis. Also, one profitable position with a normal risk reward ratio will cover for at least 3 stopped out positions.

I don’t care how much Bitcoin you have in your BitMEX account, it really doesn’t matter. All that matters are the percentages. Use this method even if you have $20 or $20 million in BitMEX.

Stick to the plan

The most challenging part of trading on BitMEX is sticking to the plan. You already set stop orders, take profit orders for your position. Do not let the greed or fear to take the control, leave it be.

If you are in a losing trade, don’t act on it. Let the “stop loss” order do its job. Stay away from your screen.

If you are in a winning trade, don’t act on it. Let the “take profit” orders do its job. Stay away from your screen.

Have fun

Don’t bother yourself with the complex analysis methods that mostly have no use. You will have so much fun when you see that green unrealised profits text constantly changing, it will energize you, keep your hormones alive.

I am sharing all my trades on my Twitter profile and Telegram channel, for free! Check those out, my profitability rate is higher than average.