Futures Grid Bot is designed to automatically buy and sell futures to maximize profits in a volatile crypto market.
Grid Bots are automated trading strategies designed to place buy and sell positions at predetermined intervals within a predefined price range. They’re designed to capitalize on price fluctuations, and perform best in volatile markets.
How Does the BlockFin Futures Grid Bot Work?
BlockFin‘s Futures Grid Bot offers three (3) ways — buy, sell and Neutral — to place your orders. Let's take a look at how each type of order works.
Buy Mode
Buy mode is suitable for volatile market conditions where prices are rising. Buy grids will enter buy positions upon creation at market price, and take profits by closing buy positions when the price rises.
Example
Suppose Trader A creates a Futures Grid Bot strategy based on the following parameters:
- Derivatives trading pair: BTCUSDT
- Market price: 19,000 USDT
- Upper price: 30,000 USDT
- Lower price: 10,000 USDT
- Number of grids: 5
- Grid mode: Geometric
- Leverage: 2x
- Intervals: 24.57% ≈ (30,000/10,000)((1/5) )– 1
Note
Geometric: Each grid has an equal price difference ratio. For example, if the interval is 24.57%, the price of the next order will be 24.57% higher than the previous price.
Geometric: Each grid has an equal price difference ratio. For example, if the interval is 24.57%, the price of the next order will be 24.57% higher than the previous price.
The system will calculate the price of each grid and place your orders with 2x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows.
Price (USDT) | Order Type |
30,000 | Sell Limit (Close buy) |
24,082 | Sell Limit (Close buy) |
19,331 | No order will be placed |
Market price: 19,000 USDT | |
15,518 | Buy Limit (Open buy) |
12,457 | Buy Limit (Open buy) |
10,000 | Buy Limit (Open buy) |
When the BTC price rises to 19,331 USDT, no order will be triggered. In the one-sided market, the BTC price rises to 24,082 USDT, the sell order will be filled in USDT, and a buy order will be placed at 19,331 USDT.
If the price continues to rise and reaches 30,000 USDT, the 30,000 USDT sell order will be filled and a buy order will be placed at 24,082 USDT. On the other hand, if the price falls back to 19,331, the 19,331 USDT buy order will be filled and a 24,082 USDT sell order will be placed.
Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 30,000 USDT or falls below 10,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.
If the market price falls outside the price range, you can choose either to terminate the Future Grid Bot strategy, or wait for the price to return to the range you’ve set, at which time the strategy resumes. Once you have terminated your bot, all your pending orders will be canceled and your positions will be closed at the current market price. Your assets will be credited automatically to your Account.
Sell Mode
Sell mode is suitable for volatile market conditions where prices are falling. sell grids will enter sell positions upon creation at market price and take profits by closing sell positions when the price falls.
Example
Suppose Trader A creates a Futures Grid Bot strategy based on the following parameters:
- Derivatives trading pair: BTCUSDT
- Market price: 20,000 USDT
- Upper price: 30,000 USDT
- Lower price: 10,000 USDT
- Number of grids: 5
- Grid mode: Arithmetic
- Leverage: 2x
- Intervals: 4,000 = (30,000 − 10,000)/5
Note
Arithmetic: Each grid has the same price difference. For example, if the interval is 4,000 USDT. The price of the next order will be 4,000 USDT higher than the previous price.
The system will calculate the price of each grid and place your orders with 2x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows:
Price (USDT) | Order Type |
30,000 | Sell Limit (Open Sell) |
26,000 | Sell Limit (Open Sell) |
22,000 | Sell Limit (Open Sell) |
Market price: 20,000 USDT | |
18,000 | No order will be placed |
14,000 | Buy Limit (Close Sell) |
10,000 | Buy Limit (Close Sell) |
When the BTC price falls to 18,000 USDT, no order will be triggered. In the one-sided market, the BTC price falls to 14,000 USDT, the 14,000 USDT buy order will be filled and a sell order will be placed at 18,000 USDT.
If the price continues to fall and reaches 10,000 USDT, the 10,000 USDT buy order will be filled and a new sell order will be placed at 14,000 USDT. On the other hand, if the price rises back to 18,000 USDT, the 18,000 USDT sell order will be filled and a 14,000 USDT buy order will be placed.
Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 30,000 USDT or falls below 10,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.
If the market price falls outside the price range, you can choose either to terminate the Future Grid Bot strategy, or wait for the price to return to the range you’ve set, at which time the strategy will resume. Once you have terminated your bot, all your pending orders will be canceled and your positions will be closed at the current market price. Your assets will be credited automatically to your Account.
Neutral Mode
For neutral mode, the strategy will begin with no initial position. The bot will place buy orders below the base price and sell orders above the base price. When the market price hits the preset price, the buy/sell position will be opened, depending on which order direction is filled.
Example
Suppose Trader A creates a Futures Grid Bot strategy based on the following parameters:
- Derivatives trading pair: BTCUSDT
- Market price: 20,000 USDT
- Upper price: 30,000 USDT
- Lower price: 10,000 USDT
- Number of grids: 5
- Grid mode: Arithmetic
- Leverage: 2x
- Intervals: 4,000 = (30,000 − 10,000)/5
Note
Arithmetic: Each grid has the same price difference. For example, if the interval is 4,000 USDT. The price of the next order will be 4,000 USDT higher than the previous price.
The system will calculate the price of each grid and place your orders with 2x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows:
Price (USDT) | Order Type |
30,000 | Sell |
26,000 | Sell |
22,000 | No initial positions will be placed |
Market price: 20,000 USDT | |
18,000 | Buy |
14,000 | Buy |
10,000 | Buy |
When the BTC price hits 18,000 USDT, the buy position will be executed, and the sell order at 22,000 USDT will be placed above on the next grid. When the price rises to 22,000 USDT, the sell order will be executed, and subsequently close the buy position, and a buy order at 18,000 USDT will be placed — that is, a grid trade is now completed and profits are made from the price difference.
Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 30,000 USDT or falls below 10,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.
If the market price falls outside the price range, you can choose either to terminate the Future Grid Bot strategy, or wait for the price to return to the range you’ve set, at which time the strategy will resume. Once you have terminated your bot, all your pending orders will be canceled and your positions will be closed at the current market price. Your assets will be credited automatically to your Account.