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Guide MargiX Signal

MargiX Admin
MARGIX
Published in
7 min readOct 28, 2019

LESSON 1: TRADE WITH 1 ACCOUNT

A. NOTICE THE SIGNS OF COLLECTING/DISCHARGING

The signs of collecting/discharging can be recognized by contradict Trends and Volume indexes:

✅Collecting: This is when the Trends Sell is overwhelmingly superior to the Trends Buy, but the Buy Volume is strong and superior to the Sell Volume, this is a signal of buying in large quantities of organizations and whales in the market etc.

✅Discharging: When Trends Buy overwhelms Trends Sell, but the Sell Volume index is strong and superior to the Buy Volume, this is a signal that those organizations and whales in the market want to maintain the price to sell at the best prices.
Then there will be the Pump (Post collecting)/Dump (After discharging) phase to optimize the profit of these organizations, whales, etc.

Market is showing collecting signs

Knowing this signal helps us quickly identify market trends in the near future to have appropriate trading plans

B. TRADE WITH FLUCTUATING VOLUMES

MargiX provides market transaction data in microseconds. We can track and understand the times of market fluctuations to get the most optimal entry and exit with the following simple method:

↗️Place Long order when market has sudden and overwhelming Buy Volume compared to Sell Volume, plus Buy speedometer increasing strongly at high levels (from 8 to 15). BTC price at that moment is going side-way or just slightly increasing. Followings are the images to recognize sudden and strong increasing trends of the market.

↘️Go Short when suddenly Sell Volume appears and overwhelms Buy Volume. Sell speedometer increases strongly at high levels (from 8 to 15). At that moment, BTC price is going sideway or slightly decreases. Followings are the images to recognize sudden and strong decreasing trends of the market.

C. RECOGNIZING “INVERSELY PROPORTIONAL” TREND OF MARKET

1️⃣Step 1: Notice Open prices of 1 hour (1H) timeframe as a standard point, including both Bitmex price and Index price.

▷Method 1: Watch for Open price of 1H frame to capture the following prices:

▷Method 2: Use both charts, XBT chart at Bitmex and BXBT Index chart, set timeframe for 1H, observe open price of each one and try to remember them.

2️⃣Step 2: Observing volume at least 15 minutes, when all conditions are met as followed, we notice the trend “Inversely proportional — Buying cheap → Price goes down in short term”

  • Buy Volume is greater than Sell Volume by at least 300
  • Current price is lower than Open price (including both Bitmex and Index) by 10 to 15 points.

When all of the above conditions are met simultaneously, it should be good to short (sell) when Sell Volume increases strongly and Sell speedometer points at high levels (constantly from level 3 to 5).

On the opposite, it would be the case of “Inversely proportional — Selling high → Price goes up in short term”. Enter Long when Buy Volume increases sharply, Buy speedometer constantly points at level 3 — level 5.

D. RECOGNIZING MARKET TREND BASED ON SPEEDOMETER SAVING FUNCTION

“Speedometer saving” is divided into 2 parts:

▶️Part 1: The duration of each level of each speedometer.

▶️Part 2: The number of times that speedometer points at these levels.

“Speedometer saving” enables us to catch the market trend during a specific timeframe (1H, 3H, 6H, so on).

With this function, we can apply to determine the market trend during upcoming timeframes as followed:

  • Observe the durations of levels in “Pump history” and “Dump history”
  • Compare these durations (in the same timeframe), which level has greater duration as well as number of active times will determine the trend.

For example: in the below image we can see that the levels of “Pump history” has better duration and number of active times compared to “Dump history”. In this scenario, if price has not gone up or has just increased slightly, the upcoming trend could be still up. Entry should occur when sudden Buy Volume appears and overwhelms Sell Volume.

E. Classifying Price Zones function with Trade Volume of Bitmex

“Classifying Price Zones with Trade Volume” is an index indicating BTC price fluctuation through different price zones in a day at Bitmex. This index is displayed in the most direct and understandable visuals to help users understand and compare. Side by side price zones, trade volume of Long/Short orders is integrated in each zone. This indicates that:

  • It helps users recognize which price zone does BTC price stay at mostly in different timeframes (1H, 3H, 6H, so on).
  • In each price zone, users know the trade volume for Long/Short at Bitmex (the most liquid exchange in the world)

At different price zones, the ratio of trading Long/Short at Bitmex (the most liquid exchange in the world) is different.

Knowing the above 2 indexes enables us to capture the fluctuating range of BTC price.

Moreover, we already know that cryptocurrency market is easily manipulated by unknown organizations or individuals. Therefore, being aware of Long/Short volumes in these prize zones enables us to peel out the potential market scenarios, so we can come up with appropriate trading strategies. We have realized that when one of the two betting ratios increases (Long is betting going up, Short is betting going down), meaning Long or Short is overwhelming the other, then a massive Dump or Pump would appear on the opposite way.

LESSON 2: HOW TO TRADE 2 — WAY LONG AND SHORT ETHEREUM (*) WITH LEVERAGE ON BITMEX

(*) ETH has average price fluctuation, possibility of increase or decrease is quite reasonable to control our positions.

Method of trade Long and Short simultaneously

1️⃣Step 1. Split your capital into halves and deposit them into 2 different accounts. (say account A and account B)

2️⃣Step 2. Determine the current trend

  • If the current trend is down trend then account A will short (sell) with 15% of its cap, using x10 leverage. (recommendation: Short more than Long)
  • After that, if trend goes against account A’s position then account B would long (buy) with 10% to 15% of account balance.

3️⃣Step 3. Manage two accounts — Long and Short

  • Set DCA (dollar cost averaging) orders for both account A and B, price of these orders must be $3 — $4 away from liquidation prices. Quantity of DCA orders should be only half of the current positions.

Example: Account A entered a Long position with 100 in quantity at price $165, liquidation price is $150 and x10 leverage level. Therefore, we would make DCA at price $153 with 50 in quantity. (liquidation price would differ according to different leverage levels, but the above DCA rule is the same)

  • Take profit (close the positions) if your position has a profit of 20% or above (with leverage).
  • The price for account A to take profit is also the DCA point of account B and vice versa.

Example: Account A entered a Long position at price $165, then made DCA orders at price $153; Account B would enter a Short at price $164, then made DCA orders at price $177. So account A’s position would close at price $176.9 (account B’s liquidation) and account B’s position would close at price $152.9 (account A’s liquidation).

  • After closing one of the two positions, continue to reenter another position (in the account you have just closed/take profit)
  • If a great volume suddenly appears in the market, handle as followed:
    → Method 1: Switch leverage to Cross (or leverage levels that less than x10) instead of DCA. After the market is back to normal, consider to switch leverage level back to x10.
    → Method 2: DCA by the same size with the current position at liquidation price (example: account A is having a position with a size of 100, then at liquidation price we would DCA with an amount of 100). Recommendation: account has considerably high balances.
  • After closing profitable positions, the distance between Long and Short positions’ entry price is relatively great (from $15 to $20 in ETH price).

Example: Account A just had profit but account B’s DCA order was activated, which made account B’s entry price closed to account A’s one.

  • We keep trading these two positions — Long and Short simultaneously. When reenter a Long or Short position, only go half size of the position you have just take profit.
  • When an account has doubled its position’s size (due to DCA) from initial size, we should close 1/3 amount of this DCA position to assure profit of both accounts. The rest of this position should be taken care of as normal.

→ Maintain until you can close two accounts’s positions with profit, end of trading process.

⭕️ MargiX Signal is not only fit for Margin trading but also for normal trading with the goal of maximizing profit with normal trading methods at exchanges like Binance, Huobi, Okex and so on.

🧧Good luck !

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MargiX Admin
MARGIX

Written by MargiX Admin

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