While the cryptocurrency market is in turmoil in yet another wave of fear and panic, it’s time to master new tools that will help you trade successfully, regardless of who is running the show – bears or bulls.

The Futures Grid Bot is one of the exchange instruments that has a moderate level of risk and is easy to set up, making it a suitable start for beginners in the futures market.

The main advantage of futures trading is that if the market is volatile, the futures trader has the opportunity to make money. In addition, futures are:

  • Commissions are lower than on spot

  • Lower spreads and higher trading activity

  • Capital works more efficiently

  • You can make money both on growth and on decline

  • Wider functionality of orders

  • Volume is made on futures

  • Leverage can be used

Futures traders often receive rewards from crypto exchanges as part of promotional campaigns. Trading platforms are interested in increasing trading volumes and activity, and large volumes and high liquidity are easier to increase in the futures market. To do this, crypto exchanges stimulate users and organize tournaments, competitions, promotional campaigns with a prize fund for futures traders.

The main requirement is not about profitability, but about achieving a certain trading volume. Thus, in addition to profitability from trading on the futures market, you can get nice bonuses in the form of prizes from the crypto exchange. Prizes can reach 5000 USDT per account. For example, one of the largest crypto exchanges in the world, OKX, regularly holds competitions and promotional campaigns for futures traders with prizes, such as “Smart Trading Super League» with a prize pool of up to 150,000 USDT.

To simplify work with futures, traders use trading bots. These are specialized programs that execute transactions in accordance with a certain strategy. Bots will not replace a human trader, but they will help him free up time and not stop trading even during periods of rest or vacation. But this will require careful adjustment of the bot to your risk profile and taking into account your personal money management strategy.

What is a futures grid bot?

A futures grid bot is an automated strategy that allows you to trade futures contracts at a preset interval and within a predetermined range. For each given grid, the bot will buy low and sell high, ensuring profits in a volatile market.

Futures trading bot can work in three directions:

  • long trade

  • short trading

  • neutral trading, when the bot can open positions both long and short.

The operating principle of futures grid bots in long and short is the same and differs only in the direction of trading. To set up a grid bot in long or short, you need to specify:

  1. The lower and upper boundaries of the price range. The trading bot will operate within these limits. It is important to understand the average price value, since the bot will buy below the average value and sell above the average value. For example, when setting up a grid bot for the BTC/USDT pair, the lower limit of the grid range is $50,000, the upper limit is $70,000. The average price value is $60,000. Below $60,000, the bot will buy, above it will sell.

  2. Number of grids, which will be used, and the mode of construction of these grids – arithmetic or geometric. In arithmetic mode, the grids will be placed at an equal distance from each other. This will allow for an even distribution of orders. In geometric mode, the distance between the grids is set at a certain percentage value. This will allow, on the contrary, to place orders further from each other in the middle of the range and closer at the edges.

  3. Leverage size and volume of fundswhich are planned to be used in trading. It is better to choose a small leverage, for example, 3x. With such leverage, it will be difficult to face forced liquidation even in the event of a sharp reversal of the market trend. It is important to remember: the margin is distributed evenly between all orders in the grid and when a certain level is reached, it is automatically added to the position, and due to the fact that the entry price into the position at the grid levels is different. The level of margin use also changes, that is, it is not a fixed amount, but constantly changing.

After entering all the data to the exchange, the settings window will display the calculated data on the amount of funds per grid and the approximate liquidation price in case the price goes in the opposite direction.

Some exchanges offer additional features when setting up futures grid bots. For example, OKX has the following advanced settings:

  • Conditions for starting and stopping the bot. By default, the bot starts working immediately after clicking the create button. Using advanced settings, you can specify a specific trigger value after which the bot will start working – on price, the Relative Strength Index indicator (RSI, measures the rate of price change) or signals from TradingView. The trading bot stop conditions are set in a similar way. By default, the value is set manually, which can be changed to a trigger value – price, RSI indicator or signal from TradingView.
  • Actions with cryptocurrency in case of bot stop – sell or leave on the account.
  • Classic take profit and stop loss orders. The price for both types of orders can be specified both in absolute numbers and in percentage value, which is expressed as a percentage of profit and loss (PnL).

OKX also offers an advanced way to set up a futures grid bot — using artificial intelligence. In this case, the system will automatically determine the most relevant settings for the grid bot and launch it. All the trader needs to do is click the “Copy” button, select the leverage size and specify the amount of funds that will be used in trading in the next window, and click the “Create” button. After that, the bot will start working.

Although futures are considered a high-risk instrument, with a cautious and moderate approach, their use can significantly increase the efficiency of trading. Futures help make the trading deposit work and squeeze the maximum out of it. The main thing is to control your risks.