Futures Grid Bot is a combination of futures trading and Grid trading robot, which can bring about low risks and high profits. The more volatile the market is, the more profits you can gain.
How to jumpstart Futures Grid as a newcomer and seize profit opportunity from volatility? This article will introduce:
1. What is Futures Grid?
2. How to create Futures Grid orders?
3. Tips on Futures Grid
1. What is Futures Grid?
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.
Therefore, investors can gain profits as long as there is volatility.
Here are the advantages of grid 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 enjoys two extra benefits compared to Spot Grid:
1. No exposure, with even lower risks;
2. Higher leverage, amplified profits.
Futures Grid Order Example:
2. How to create Futures Grid orders?
1. Access Future Grid
BingX App: On the home page, go to "Grid Trading" -> "Futures Grid".
BingX website:
2. Create Futures Grid in 3 Steps
Step 1: Choose a trading pair.
Step 2: Set grid parameters.
Choose "Auto" to use the recommended parameters or "Manual" to customize your settings.
Step 3: Set leverage & investment amount, and start 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. Tips on 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. Tips on Setting 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.
Grid number = (upper limit - lower limit) / 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: