Introduction to BlockFin Futures Grid Bot
Futures grid trading is an automated strategy that trades futures contracts with preset intervals within a specific price range. The strategy will continuously buy low and sell high for each grid defined, and profit from the volatile market. It currently only supports One-Way mode.
How does BlockFin Futures Grid Bot work?
The essence of the futures grid is "volatility arbitrage", so the strategy is suitable when the market is sideways or volatile with the price continuously fluctuating within a range. Meanwhile, the futures grid strategy can be directional, in which:
- Buy Futures Grid: The bot will enter buy positions upon creation at market price, and take profits by closing buy positions when the price rises. It works best in volatile markets with a bullish outlook.
- Sell Futures Grid: The bot only possesses sell positions and earns profit by closing them when the price drops. It works best in volatile markets with a bearish outlook.
- Neutral Futures Grid: The both possess both buy and sell positions, in which the bot will sell the futures contracts when price is above the base price and buy the futures contracts when the price is below the base price.
Users can select the corresponding futures grid strategy based on their insight into the market outlook.
How to get started?
Click on [Futures] on the navigation bar, select [Trading bots], and click [Futures Grid].
Enter parameters manually and confirm the total investment amount to create a Futures grid bot (After you create a Future Grid bot, the initial funds will be isolated from your Trading account and used for grid trading only).
Grid Trading Parameters
Lowest price: The bot will stop placing orders when the market price is lower than the lowest.
Highest price: The bot will stop placing orders when the market price is higher than the highest price.
Grid quantity: The number of grids represents the number of pending orders divided into the price range. For example, if the price range is 100-400, the mode is arithmetic, and the number of grids is 3, it is divided into three grids: 100-200, 200-300, and 300-400.
Grid mode - Arithmetic grid: It keeps the same common difference between each grid. (For example: 1, 2, 3, 4.)
Grid mode - Geometric grid: It keeps the same common ratio between each grid. (For example: 1, 2, 4, 8.)
Leverage: The leverage used when trading contracts in the strategy. The default leverage is 3x.
Invested Margin (Amount USDT): The actual amount that was invested in this grid strategy. It will be used after the grid bot starts running.
Estimated liquidation price (Buy): Estimated liquidation price of the buy position with the maximum opening amount, on the assumption that all buy orders in the grid are filled.
Estimated liquidation price (Sell): Estimated liquidation price of the sell position with the maximum opening amount, on the assumption that all sell orders in the grid are filled.
Managing your Futures Grid bot
On the Futures Trading page, below the chart, navigate to [Trading Bots] and select [Futures Grid] to manage your bots.
1. Adjust Margin
Allocate additional margin to reduce liquidation risk without altering the amount allocated per grid. You can add a margin to the bot or reduce the margin.
2. Stop your bot
When you stop this bot, the system will cancel all pending orders. After stopping futures grid, all your pending orders under this bot type will be canceled, and positions will be closed at the market price.
Under the [Trading Bots] section, select [Futures Grid], then click [Stop] next to the ongoing bot you wish to stop and confirm.
3. Replicate parameters
One-click set-up to recreate your running bot with the same parameters.
4. View Bot Details
View more details about your running bot by clicking [Details], then you can access the Bot Details page.
In the upper right corner, you can [Stop], [Adjust Margin], [Share], or [Replicate parameters] for the current bot. Additionally, you can view Bot performance, running time, bot settings, position details, grid order, history, and funding fee information.
