What is the BitMex Compound Bot?
The BitMEX Compound Bot is a software algorithm that is used to trade Bitcoin – i.e. buy and sell Bitcoin with the aim of increasing the amount of Bitcoin held. It uses capital that you provide on the BitMEX exchange. The Bot software is run and managed by the owners of the bot (meaning that you don’t have to run it on your own server) and it performs buy and sell actions within BitMEX via remote (API) calls. The process is fully automated, requiring no manual input or configuration – you just ‘set it and forget it’.
What is compound profit?
Compound profit is basically profit upon profit.
You might be familiar with the term ‘compound interest’ – compound profit is the same concept, but here we are talking about profit, not interest. Interest is guaranteed based on holdings, profit is not.
If you were to put in $5,000 and get 5% profit per month without withdrawing any money, this is what your return would look like over a 5 year period:
This looks like a very good return on investment over a short amount of time. The BitMEX Compound Bot has to date had average gains of more than 5% per month (see section ‘BitMEX Compound Bot Historical Performance’ below for details).
Now let’s look at the variables:
1. Initial Investment
The more you put in, the higher your potential gain. Also, the higher your risk (assume that you could lose it all).
2. Monthly Percentage
In the example above I used 5%. What can you actually get? In the next section I will show you the historical values that the BitMEX bot has been getting, note that historical performance does not guarantee future performance.
In the example, I used USD as it’s easy to relate to. With BitMEX, we will be using Bitcoin.
Bitcoin has historically been highly variable, so even if your holdings of Bitcoin were to increase, the fiat value could still be less than your investment value
The best and worst-case scenarios:
The best-case scenario is:
- The BitMEX Compound Bot accumulates a high percentage of Bitcoin on a monthly basis
- The value of Bitcoin goes up over time
The worst-case scenario is:
- The BitMEX Compound Bot loses a significant or entire amount of your capital
- The value of Bitcoin goes down over time
Ways to mitigate risk
- Withdraw some/all profit until your initial investment (plus subscription fee) is recovered. After this, your investment will be entirely comprised of profit gained by the BitMEX Compound Bot
- You can set stop losses, to mitigate against the risk of a sudden, large decrease of value in Bitcoin (as seen in early 2018 after high rises in 2017). Note that if you do this, the buy/sell and potential recovery operations of the BitMEX Compound Bot will be interrupted
BitMEX Compound Bot historical performance
The bot’s team run an account themselves and they publicly display their results on http://cryptocompoundbot.com/ each month.
This table shows the results of the developer’s own account, plus the results from my ‘SelfCrypto’ account:
|BitMEX Compound Bot Results||SelfCrypto Results|
|Month (2019)||BTC Gain % Month||BTC Gain % From Start||BTC Gain % Month||BTC Gain % From Start||BTC Holding||Notes|
|January||-5.3%||-||-||-||-||BitMEX Compound Bot started with 0.06btc on 14/01/2019|
|May||13.6%||80.7%||3.9%||3.9%||0.5193||SelfCrypto account started with 0.5btc on 17/05/2019|
Note that historical performance may not guarantee future performance.
The SelfCrypto account has only had 2 full months of results so far (June-July).
In June it increased by 5.4%. In comparison, the x10 Challenge account increased by 9.7%. I asked the developer about this, they said that the difference is because of rate limit changes and record volume within BitMEX. The bot has been re-written, and the bottleneck between the bot and the BitMEX exchange has been removed, meaning that orders will take place much faster and more reliably than before. When reviewing the orders placed with the SelfCrypto account and my brother’s BitMEX Compound Bot account (which is totally separate from my account), orders were placed within a second of each other.
In July, the amount of BTC held by SelfCrypto lowered by 11.3% (to 0.4855 BTC). This is comparable to the x10 Challenge account which lowered by 11.03%. Note that the SelfCrypto account recovered up to an all-time high of 0.5893 BTC on 10th August 2019, which is an excellent recovery.
My experience with the BitMEX Compound Bot
From 17th May 2019 to 12th July 2019, the amount of Bitcoin that I’m holding in this account has increased from 0.5btc to 0.5658btc (note BTC and XBT both mean Bitcoin – it can be listed as either on exchanges). That’s an increase of 14.4%. In GBP terms, I put in about £3,000 and it is now worth £5,120 (the increase is a result of two factors an increase in the amount of Bitcoin held, plus an increase in the value of Bitcoin). The overall GBP value has in fact reached just under £6,000 on at least 2 occasions already, but dropped due to the instability of Bitcoin.
My holding of Bitcoin has also dropped by a few percent on multiple occasions, but when it has; I have been impressed with how the bot has been able to recover the holding, each time bringing it to all-time highs.
What I like about the bot is:
- The account has never once come close to liquidating (which would result in me losing all the money in the account)
- Where Bitcoin has suddenly dropped in value (in once case by 40%), my account’s holding of Bitcoin dropped for a short period (e.g. a week), then fully recovered
- I have seen a good return on my investment (as shown in the table above)
- There are no settings to play with – you just put your money in and let the bot do its thing
- There is an active chat group In Discord. The developer is very friendly and approachable and has quickly answered all my questions
If you would like to subscribe to the BitMex Compound Bot
- Read the BitMEX Compound Bot website which gives details of the bot, history of performance, subscription options and details on how to subscribe
- Contact the BitMEX Compound Bot team on one of the options given (I used Discord). Tell them that your referrer is ‘Selfcrypto’ and you will get 10% discount on your first subscription
- The subscription is paid for in Bitcoin. If you haven’t bought Bitcoin before, I recommend that you buy it from an exchange such as: