How to Create Ultra-High Leverage at BitMEX of up to 700x
NEWS 23 Sept 2018: AntiLiquidation.com is a BitMEX Anti-Liquidation Tool & Leverage Calculator. This free tool will save you up to 70% of your capital in losing trades. It also enables up to 700x leverage via tight Stop placement. Use for Risk Management & to improve your bottom line at BitMEX.
AntiLiquidation.com is configurable so you can input your own risk numbers. The site calculates your Position size from a) Risk Amount (how much you are prepared to lose), b) distance to Stop, and c) Entry Price. A checklist takes you through the structuring of a good trade that avoids all possibility of Liquidation and ‘blowing up’ your account.
There is a a Guide to accompany use of the AntiLiquidation tool: How to Use the BitMEX Anti-Liquidation Tool.
TL/DR: People believe that the maximum leverage available at BitMEX is 100x. And the maximum you can set using the Slider Bar is indeed 100x:
You can bypass this restriction and create up to 700x leverage using the free tool AntiLiquidation.com.
There are times when you want to do an ultra-high leverage trade at BitMEX aka a Hail Mary. I explain here how you can create a synthetic 100x trade that offers the same return as the 100x on the BitMEX Slider Bar but less risk. So if the trade goes right the two methods generate the same $ profit, but if it goes wrong your losses with the BambouClub Synthetic 100x are about half those you experience with the 100x selected on the Slider.
If you want to do a high-risk / high-return ‘Hail Mary’ trade at BitMEX you have two options:
- Choose 100x on the Slider Bar:
2. Create a Synthetic 100x Trade. It offers the same Return but less Risk than the Standard 100x. If the trade goes well you get the same return in absolute terms, but of the trade goes bad your dollar losses are smaller.
How to Create a Synthetic 100x Trade
- Open a position with Limit Order with leverage < 10x
- Using the BitMEX Calculator, check your Liquidation Price with your selected Entry Price and with 100x Leverage
- Set up a Stop market trade with a Stop Price a tiny bit more favourable than the 100x Liquidation Price calculated at Step 2. [At time of writing 20 July 2018 with Bitcoin Price 7474 the Stop will be $40 away from your Entry price.]
- Set up your target Exit trade
- Leave the trade in the oven while you go and have a pint.
This example is from 19 July 2018 when Bitcoin Price was 7389.
Example to build muscle memory:
- Set up Limit Sell Order with Limit $10 above Market with 7x:
Entry Price 7399
2. Using the BitMEX Calculator, check your Liquidation Price with your selected Entry Price and with 100x Leverage:
100x Liquidation Price 7436. [This is $37 away from Entry.]
3. Set up a Stop market trade with a Stop Price a tiny bit more favourable than the 100x Liquidation Price calculated at Step 2. [The Stop will be $40 away from your Entry price.]
We are short so set Buy Stop market $40 higher
Buy Stop 7440
4. Set Target Exit Limit Order.
I set mine with target of $80 profit with $40 Capital at Risk which is a tidy Risk/Return ratio. But you can set yours $500 higher if your wife is overly friendly with the firefighter next door and you want a Hail Mary.
Target Exit Limit Buy 7319
Synthetic 100x Trade
Short Entry Price 7399
100x Liquidation Price 7436. [$37 away from Entry.]
Buy Stop 7440 [$41 from Entry]
Target Exit Limit Buy 7319
Summary of Risk and Returns
Our Synthetic 100x has the same return of a 100x Short. We are short 10,000 in both cases.
The Stop at 7440 with the Synthetic is more generous than the Liquidation Price of a 100x which is 7436. In that sense we have reduced Risk with the Synthetic.
The Losses on failure are smaller.
The loss on a Liquidated 100x Short 10,000 Position are 0.0157 BTC (about $116):
But the loss on this equivalent ‘synthetic’ high-leverage trade if it goes wrong is in the region of 0.0074 BTC ($55). It will likely to a tiny bit higher as our Market Buy Order likely to be filled slightly above 7440.
There are times when high leverage is called for. But you can be a sucker and use the High Leverage offered on the Slider or you can use your capital efficiently and create a synthetic high leverage trade, and say a prayer.
About the Hail Mary of Roger Staubach: