Introduction
The Futures Grid Strategy is an automated trading strategy that involves buying low and selling high within a specific price range. Users only need to set the upper and lower price limits of the range, specify the number of grids to be divided. Then, the strategy can be executed. This will calculate the buying and selling prices for each small grid, place orders automatically, and take profit from market fluctuations as they occur.
How does the Toobit Futures Grid Bot work?
Toobit's Futures Grid Bot supports three (3) types of orders — Long, Short and Neutral — to place your orders. Let's take a look at how each type of order works.
Long
Long mode is specifically designed to thrive in rising markets. This automated strategy leverages market volatility to maximize potential gains during uptrends.
Example:
Trader A creates a Futures Grid Bot strategy based on the following parameters:
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Trading pair: BTCUSDT
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Market price: 22,000 USDT
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Upper price: 30,000 USDT
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Lower price: 20,000 USDT
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Number of grids: 5
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Grid mode: Geometric
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Leverage: 5x
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Intervals: 8.44% ≈ (30,000/20,000)^((1/5) )– 1
Note:
Geometric: Each grid has an equal price difference ratio. For example, if the interval is 8.44%. The price of the next order will be 8.44% higher than the previous price.
The system will calculate the price of each grid and place your orders with 5x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows.
|
Price
|
Order Type
|
|
30000
|
Close Long
|
|
27658
|
Close Long
|
|
25505
|
No order
|
|
Market Price：25000
|
|
|
23519
|
Open Long
|
|
21688
|
Open Long
|
|
20000
|
Open Long
|
When the BTC price rises to 25505 USDT, no order will be triggered. In the one-sided market, the BTC price rises to 27658 USDT, the sell order will be filled in USDT, and a buy order will be placed at 25505 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 27658 USDT. On the other hand, if the price falls back to 25505, the 25505 USDT buy order will be filled and a 27658 USDT sell order will be placed instead.
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 20,000 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 Futures Account.
Short
Short mode is suitable for oscillating down markets. A shorting lattice strategy will establish a short position at the market price and then buy and close it when the price falls, earning a profit.
Example:
Trader B creates a Futures Grid Bot strategy based on the following parameters:
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Trading pair: BTCUSDT
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Market price: 25000 USDT
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Upper price: 30000 USDT
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Lower price: 20000 USDT
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Number of grids: 5
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Grid mode: Arithmetic
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Leverage: 5x
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Intervals: 2000 = (30000 − 20000)/5
Note:
Arithmetic: Each grid has the same price difference. For example, if the interval is 2000 USDT. The price of the next order will be 2000 USDT higher than the previous price.
The system will calculate the price of each grid and place your orders with 5x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows:
|
Price
|
Order Type
|
|
30000
|
Open Short
|
|
28000
|
Open Short
|
|
26000
|
Open Short
|
|
Market price: 25000
|
|
|
24000
|
No Order
|
|
22000
|
Close Short
|
|
20000
|
Close Short
|
When the BTC price falls to 24000 USDT, no order will be triggered. In the one-sided market, the BTC price falls to 22000 USDT, the 22000 USDT buy order will be filled and a sell order will be placed at 20000 USDT.
If the price continues to fall and reaches 20000 USDT, the 20000 USDT buy order will be filled and a new sell order will be placed at 22000 USDT. On the other hand, if the price rises back to 24000 USDT, the 24000 USDT sell order will be filled and a 22000 USDT buy order will be placed instead.
Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 30000 USDT or falls below 20000 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 Funding Account.
Neutral
The Futures Grid strategy also features a "Neutral Mode" that thrives on market volatility, regardless of the price direction. This automated approach capitalizes on price swings in both upward and downward movements.
Example:
Trader C creates a Futures Grid Bot strategy based on the following parameters:
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Trading pair: BTCUSDT
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Market price: 20,000 USDT
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Upper price: 30,000 USDT
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Lower price: 10,000 USDT
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Number of grids: 5
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Grid mode: Arithmetic
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Leverage: 5x
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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
|
Order Type
|
|
30000
|
Open Short
|
|
26000
|
Open Short
|
|
22000
|
No Position/Order
|
|
Market price：20000
|
|
|
18000
|
Open Long
|
|
14000
|
Open Long
|
|
10000
|
Open Long
|
When the BTC price hits 18,000 USDT, the long position will be executed, and the short order at 22,000 USDT will be placed above on the next grid. When the price rises to 22,000 USDT, the short order will be executed, and subsequently close the long position, and a long order at 18,000 USDT will be placed.The 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 futures account.
Risk warning: Futures Grid Bot is a strategic trading tool and not financial or investment advice from Toobit. Use Futures Grid Bot at your own discretion and assume all risks associated with it. Toobit will not be liable for any losses you may suffer as a result of using this feature. Users are strongly advised to read and fully understand the Futures Grid Bot Tutorial, take appropriate risk management measures and trade sensibly within your financial means.
Toobit Team
