Futures Grid Bot is a combination of Futures trading and Grid trading robot, which can bring about low risks and high profits. The greater the volatility, the higher the profits.
How to quickly get started with the "Futures Grid" that automates buying and selling to seize the opportunities present in a volatile market? This article will introduce the basics in three simple sections:
1. What Is Futures Grid?
2. How to Create Futures Grid Orders?
3. Tips on Futures Grid
1. What Is Futures Grid (Automated Trading)?
Grid trading is a type of quantitative trading strategy. The futures grid helps investors rake in profits like a fishing net by presetting the price range for each grid and dividing the funds into multiple portions.The grid bot automates buying low and selling high when the market price reaches the preset prices. Each buying-selling constitutes an arbitrage process.
As long as the market fluctuates up or down, there will be profits.
Advantages of bot trading:
1. 24/7 automatically buys low and sells high, without the need to monitor the market
2. Uses trading bot that frees up your time while observing the trading discipline
3. Requires no quantitative trading experience, friendly to beginners
4. Enables position management and reduces market risks
Futures Grid has two more edges over the Spot Grid:
1. Supports Long/Short directions to navigate various market conditions (please upgrade to Version 3.25.0 or above)
2. Supports up to 150x leverage for greater profitability
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Direction
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Initial Position
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Working Process
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Neutral
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No initial positions will be opened
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Open long and close long in the price range below the strategy entry price
Open short and close short in the price range above the strategy entry price
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Long
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Initial long positions will be opened based on the preset parameters
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Open long and close long
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Short
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Initial short positions will be opened based on the preset parameters
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Open short and close short
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How Futures Grid in Neutral Mode works:
How Futures Grid in Long Mode works:
How Futures Grid in Short Mode works:
2. How to Create Futures Grid Orders?
1. Access Future Grid
App: On the Homepage, click "Grid Trading" -> "Futures Grid"; or on the bottom navigation bar, click Futures, then select "Perpetual Futures" -> "Futures Grid".
Website: https://bingx.com/en-us/strategy/
2. Create Futures Grid Orders in 4 Steps:
Users can choose to create a strategy by "Auto" or "Manual". Take "Manual" as an example.
Step 1: Select a trading pair
Step 2: Select a Grid direction: Neutral, Long, or Short
Step 3: Set up grid parameters: Min. Price, Max. Price, Grids (grid number)
Step 4: Set the leverage & the investment amount to create the strategy
You can set a stop-loss ratio according to your trading habits if needed. The strategy will stop and close all holding positions once stop loss is triggered.
3. Tips on Futures Grid
Setting key parameters of the grid will have a direct impact on your profits. Here is to share some tips on Futures Grid trading:
1. Setting Price Range
The red box indicates the ideal price range of the grid, which lies between the resistance and support level.
Common ways to decide the upper and lower limits of the price range:
A. Refer to momentum indicators. For example, use the upper and lower Bollinger Band of the candlestick chart of the last 4 hours or of the day as the grid limits.
B. Set according to the candlestick chart pattern. For example, refer to the 4-hour candlestick chart and set the upper and lower limits according to the most frequent highs and lows.
2. Set Grids (Grid Number)
The grid number decides the grid density.
With a constant total investment, the denser the grids, the more they can capture small swings in the market, but, at the same time, the smaller the average fund per grid.
Setting a proper number of grids needs to take into account both the fund per grid and the grid density.
Usually, investors can refer to the Average True Range (ATR) which measures volatility. If you want your grid to trade every 15 minutes, refer to the 15-minute candlestick pattern to determine the ATR.
Grids = (Max. Price - Min. Price) / ATR (20) of 15-minute candlestick pattern
3. Other Tips: Backtesting and Stop-Loss
1) Use the backtesting features wisely by testing the performance of the parameters that you set. However, be aware that the historical data is for reference only.
2) Add a safety belt to your grid by setting stop loss.
See also: