It's possible to create a quick "Chimeratech Overdragon" OTK with this card in a Deck filled with Machines, if enough Machines are milled through before "Overload Fusion" is reached. However, this strategy is risky: often times, sufficient monsters will not be milled, or "Overload Fusion" will not be reached.
Have "Mezuki", "Zombie Master"/"Il Blud" and this card in a Zombie Deck, then use it to mill through the Deck. Use "Mezuki" to revive either one of those (Gemini Summon "Il Blud" if it is the one chosen) and start reviving and other milled Zombies.
Use this card in a "Flamvell" Deck. The monsters milled can be Special Summoned with "Rekindling".
Make a deck with multiple copies of the following cards in it; "Monster Reincarnation", "Jinzo", "Jinzo - Returner", "Volcanic Scattershot", "Metaion, the Timelord" and "Sephylon, the Ultimate Timelord". Flip "Magical Merchant", then mill until "Monster Reincarnation" is picked up. Use "Monster Reincarnation" to retrieve "Sephylon", then summon it and use its effect to summon "Metaion". On top of two 4000 ATK monsters, the added effects of any discarded monsters will activate. This could including 500-1500 damage from discarded copies of "Scattershot", and up to 3 copies of "Jinzo" on the field to prevent Traps from destroying "Sephylon" and ad battle damage. If "The Sanctuary in the Sky" and 3 copies of "Radiant Jerals" are added to the deck you can gain up to 3000 Life Points and receive no battle damage if "Sephylon" is attacked.
Use this card to thin out your "Inzektor" Deck and possibly dump several monsters to Graveyard for quick equip opportunities. This should work well with several monsters of this archetype being able to equip others in Graveyard from the field.
Use this card to search out "Exchange of the Spirit". This can potentially mill enough cards to meet the activation requirement of "Exchange of the Spirit".
Special Summoning this card while you control a face up Prediction Princess Tarotrei will allow you to effectively special summon this monster face down. Plus, if you can keep Magical Merchant alive, Tarotrei will allow you to reuse it's flip effect multiple times.