BitMEX Trading Bots Overview in 2023

Crypto trading bots operate using a computer programme or artificial intelligence to read the market data. This programme, unlike a crypto affiliate program, which is a completely different thing, can automatically buy or sell items and connect to a market exchange. This means you can trade whenever and wherever without taking a break or missing out on anything. Many popular crypto trading platforms such as Bitfinex and even multi-chain-based quant uses Algo trading. Using algorithms in the webserver is also a great way to do high-frequency trading with minimal risk.

What Are The Advantages of Trading Bots?

Trading bots, once programmed correctly, have several advantages to offer any trader. The primary advantage of using trading bots is maintaining a permanent presence. Simply put, you can be active 24×7 without having to spend actual time on your computer. On top of that, it will be your own algorithmic trading strategies being used.

Most of us who have a 9 to 5 job cannot commit all of our time to online trading. This is why we miss out on some of the best trades available. Using trading bots removes this problem as they can be present while we’re indisposed. Since bots are always online, we will always be able to take advantage of the best trades out there. 

Another advantage of using bots is that we won’t have to put our own minds into action. The benefit of algorithmic trading is that it will automatically carry out our actions for us. All we have to do is programme the algorithmic trading strategy beforehand. As long as the bot knows our conditions for making a trade, it can effortlessly replicate our actions. It’s like creating a digital copy of your mind and watching it work for you. 

In order to programme your trading bot, you will have to feed it some vital information. Your personal dos and donts will be the foundation for the algorithm used by the bots. You’ll have to select the particular assets that you would like to trade with. Defining your required entry/exit conditions for each trade is also crucial for any chance of success. Finally, you will have to select how often you want the bot to trade on your behalf. 

Once these aspects have been programmed, the algorithm will be injected into the trading systems. The bots can study the financial markets and make fruitful investments that bring you profit. This is why automated trading is so popular for retail investors. In some cases, investors have even found their money doubled in just a day of using trade bots. 

Why Use Trading Bots?

We can use trading bots in any form of derivative trading and get a desirable result. Bots are especially helpful when we need to invest all our time. Instances like day trading, where we have to spend the entire day checking the prices, can be excruciating. Using trading bots in this situation removes the need to exhaust our time and energy and it removes the human emotions that traders, for better or worse, experience whilst trading. The algorithm can automatically detect when the factors suit our needs and make the trade for us. 

Which Trading Bots Support BitMEX?

There are several trading bots on the internet that support the BitMEX system. We can’t go through all of them in this article; however, we will mention some successful names. We can learn about two of them from the BitMEX website itself, BotVS and Bitmex Market Maker. 

BotVS is fully implemented into the BitMEX web server and is the largest algorithmic trading entity in China. Bitmex Market Maker is another trading bot that we can implement into BitMEX. The software is written in python and is an adaptation of liquidbot. These are just two trading bots on the BitMEX website; however, we have many more options to play with. Here is a list of some more reliable trading bots for BitMEX.

1. Playonbit is an advanced automated strategy bot that we can use with BitMEX. It promises smooth and secure bitcoin trading with its AI-enhanced trading bot. 
2. Hamsterbot is a great trading algorithm that BitMEX members have been using since 2018. The system is brought to us by experienced mathematicians and professional researchers. 
3. Vwap bot is an algorithm that specialises in making profitable orders of a high volume. It does so by breaking the large order into several smaller investments.
4. Arbitrage bot specialises in taking advantage of the price difference of similar or identical entities on the market. It is a minimum risk trading bot that works great with BitMEX.

If the above options don’t suit your needs, you can always try creating your own trading bot. After all, you can easily create a unique trading bot using the node JS platform. Be advised that you will need some coding and programming knowledge even to consider this option, but fortunately for you, you do not have to risk your funds in the BitMEX trading bot testing phase as you can get the benefit of the BitMEX testnet during that process.

Common to all of the BitMEX trading bots is that you will definitely want to apply a BitMEX referral code during the sign up process to save on the fees on BitMEX that you (through the actions of your bot) will pay.

Conclusion

Using trading bots brings us many advantages while lightening the load of manual trading. Trading bots have become a common phenomenon in crypto trading, and we understand why. It is only a matter of time before the entire crypto trading world relies on trading bots. After all, programmed A.I is quicker, smarter and much more accurate than us humans. 

BitMEX Trading Bots FAQ