What Is Futures Grid (Automated Trading)
Futures Grid is a powerful combination of Futures trading and Grid trading, designed to minimize risks and maximize profits. By setting price ranges for each grid and dividing your funds into multiple portions, this quantitative trading strategy enables you to capture profits as the market fluctuates. With the automated grid bot, you can buy low and sell high, leveraging arbitrage processes, even without constant market monitoring.
Advantages of Bot Trading:
- 24/7 automatic buying and selling without the need for constant market monitoring
- Trading bot maintains discipline and saves time
- Beginner-friendly with no requirement of quantitative trading experience
- Enables position management and reduces market risks
Futures Grid has two distinct advantages over Spot Grid:
- Supports Long/Short directions for navigating various market conditions
- Allows leverage of up to 150x for greater profitability
How to Create Futures Grid Orders?
To create your Futures Grid orders, follow these steps:
Step 1: Access Future Grid
App: On the Homepage, click "Grid Trading" -> "Futures Grid." Alternatively, on the bottom navigation bar, click Futures and select "Perpetual Futures" -> "Futures Grid."
Website: Visit bingx.com/en-us/strategy/
Step 2: Create Futures Grid Orders in 4 Steps:
Choose to create a strategy manually or automatically (for this example, we'll use the manual approach).
Select a trading pair such as BTC/USDT.
Choose a Grid direction: Neutral, Long, or Short.
Set up grid parameters: Min. Price, Max. Price, and Grids (number of grids).
Set leverage and investment amount to create the strategy.
Note: If needed, you can set a stop-loss ratio according to your trading habits. The strategy will automatically stop and close all positions once the stop loss is triggered.
Tips on Futures Grid
Optimize your Futures Grid trading by considering the following tips:
- Setting Price Range:
- Identify the ideal price range for your grid, usually between resistance and support levels.
- Common methods for determining upper and lower limits:
- Refer to momentum indicators like the upper and lower Bollinger Bands on the last 4-hour or daily candlestick chart.
- Set limits based on the most frequent highs and lows observed in the 4-hour candlestick chart.
- Set Grids (Grid Number):
- The grid number determines the grid density.
- Denser grids capture smaller market swings but decrease the average fund per grid.
- Consider both the fund per grid and grid density when setting the number of grids.
- Use Average True Range (ATR) as a reference to determine the number of grids based on desired trading intervals (e.g., every 15 minutes):
- Grids = (Max. Price - Min. Price) / ATR (20) of 15-minute candlestick pattern.
- Other Tips: Backtesting and Stop-Loss:
- Utilize backtesting features to test the performance of your set parameters, keeping in mind that historical data is for reference only.
- Strengthen your grid strategy by implementing a stop-loss mechanism for added safety.
Note: This guide serves as an introduction to Futures Grid Trading on BingX. It is important to conduct further research, stay informed about market trends, and exercise caution while trading. Remember that trading involves risks, and past performance is not indicative of future results.