Trading contracts, especially with leverage, is a risky business. Therefore, it is best if a trader can test his mastered strategies and tactics directly in the market without risking his funds prior to doing any real investing.
That is why BitMEX provides its customers with the place where they can simulate trading called BitMEX Testnet.
BitMEX Testnet is a service built on the Bitcoin testnet providing a realistic environment for traders to test their trading skills, devise new strategies or just see how the real BitMEX trading platform works.
It offers a demo account, initially topped up with 0.01 Testnet XBT (BitMEX’s ticker for Bitcoin) which is perfectly easy to set up. Once inside, there are more than a few demo markets available:
- XBT UPs/DOWNs
- Bitcoin / Yen
- Bitcoin Cash
- EOS Token
- Bitcoin / Won
In each of those, a trader can take a long or short position with a leverage of up to 100x with a limit, market, stop market, stop limit, trailing stop, take profit limit, or take profit market orders. Moreover, a trader can choose between perpetual and dated demo contracts, making the already realistic demonstration even better.
If you’re looking for information regarding BitMEX, read our full BitMEX review.
BitMEX real account VS. BitMEX testnet account
It is important for any simulation to come as close to the real thing as possible, and that’s where BitMEX Testnet does a really good job.
The customizable user interface looks exactly like the real thing so every newbie can see how it is to navigate through BitMEX’s options. Demo trader can see the whole order book as well ass all past trades and depth chart. Charts are also in real-time just the same as if you are using the real trading engine, making it possible for a user to witness the consequences of his decisions immediately as market events happen.
There is also a popular trollbox included for traders to exchange ideas as they trade, which is a great way to understand how the market feels.
Therefore, the real thing doesn’t differ from the Testnet account apart from the logo. Also, the initial amount of demo XBT can be replenished via faucet so you can prolong your trading simulation further.
When should I use BitMEX testnet platform?
BitMEX Testnet is a perfect place to test out new trading strategies and see how well would a certain trading tactic work in a natural trading environment.
Such a demo platform is also useful like a simulator is useful for a future pilot to test his mastered skills because it is one thing to backtest a strategy and completely different to be able to see it working in the real-time market.
Pros and cons
- Realistic market environment
- Provides the opportunity to test trading strategies and tactics
- Simple account creation
- XBT faucets can prolong the simulation
- Supports all BitMEX trading products
- Simulated trading (trading without the risk) is never the same as when there is a high degree of risk involved
Your capital is always at risk when trading.