To go long or short has always been a topic in the constantly changing crypto market. Usually, it is the bullish longs who are ready to embrace financial freedom, but the bearish shorts turn out to be the winner. However, no matter whether it is to magnify your profit through margin or to increase fluctuations via futures, the key lies in your ability to predict future market trends.
To do so, you must be well-prepared for market fluctuations. 80% of crypto will show price volatility, and so it is necessary to have abundant knowledge and experience in transactions, as well as the patience for monitoring the market 24/7. The high requirements of profiting from the crypto market have set back numerous investors.
Many investors are wondering if there’s a tool that can help them to profit without keeping an eye on the market? Well, the Futures Grid Bot has come to the investors’ rescue as an effective tool that can satisfy all appetites.
01 What is the Futures Grid Bot?
Just as its name implies, the Futures Grid Bot is a combination of grid trading and futures trading, which can bring grid profit for users when going long or short.
The bot will divide your investment into several grids and keep buying low and selling high within the price range. The futures grid is like a fishing net - by tracking the price of the contract, the bot continuously reaps profit from grids.
02 What kind of investors are suitable for the Futures Grid Bot?
Investors who want to go short
Statistics show that most investors choose to go long in the futures market. Regardless of the market dynamics, if one wants to go short, the Futures Grid Bot will be a less risky and more profitable choice. Compared with spot trading, the Futures Grid Bot can earn investors with not only grid profit, but also extra funding fees paid by the long side.
Investors who want to magnify profit via leverage in grid trading
Investors can now gain stable profit via KuCoin Trading Bot in spite of the market volatility. As shown in the survey of community users, many of them want to magnify their profit when running grid bots, and the Futures Grid Bot can perfectly match their needs.
Investors who want to trade in futures market but lack of experience
Generally, futures trading requires experience and skills. However, the Futures Grid Bot greatly lowers the threshold for entering into the futures market, offering investors AI parameters to help them start trading without commanding in-depth knowledge of futures trading.
Investors who do not want to bear high risks
The Futures Grid Bot keeps buying low and selling high within a preset price range and arbitrage, so even if the investors misjudge the market, they can earn grid profit. If investors choose to go short, they will probably get the extra profit from funding fees paid by the long side. In theory, the longer the bot runs, the higher the profit investors can get, because grid profit can cover the losses caused by the wrong projection of the market.
Investors who want to be free from the 24/7 market monitoring
Investors can set“Stop Loss” in “Advanced Settings”, meaning when the bot reaches the take profit price or the stop loss price, orders will be automatically closed and liquidation can therefore be avoided.
03 How to use the Futures Grid Bot?
The Futures Grid Bot is now available on the latest version of the KuCoin app. You can just simply download the app and log in to try the bot.
Step 1: Download the KuCoin app (click here to download).
Step 2: Tap into KuCoin and choose “Trading Bot”--> “Futures Grid”.
Step 3: Set parameters for your bot. You can set AI parameters or customize it by yourself.
How to set AI parameters
Step 1: Choose a contract
Step 2: Choose long or short.
Notice: The bot will automatically go long or short, but you can also change the side by yourself.
Step 3: Enter investment amount. Running bots requires funds in the Trading Account, so please make sure that you have enough balance.
Step 4: Tap “Create” to run the bot.
How to customize parameters
Step 1: Choose a contract
Step 2: Choose long or short. For reference, the distribution of long/short will be displayed.
Step 3: Set leverage. You can devote a small amount of funds and gain more profit by increasing the leverage, but the risk of liquidation will increase as well.
Step 4: Specify price range. You can choose “Fill AI Parameters”, then change the parameters based on your needs. The lower price is the minimum price for the bot to buy a contract and the upper price is the maximum price for the bot to sell. When the market price is below the lower price, the bot will stop buying contracts; when the market price goes beyond the upper price, the bot will stop selling contracts. In other words, the bot will only trade within the preset price range.
Step 5: Enter the number of orders, namely the number of grids. Under the same price range, the more the number of orders, the more the grids, the more frequent the buy low and sell high.
Step 6: Enter your investment amount
Step 7: Tap “Create” to run the bot.
The Profit of the Futures Grid Bot are from funding fees, grid profits and futures profits. To realize greater profit, you can pay attention to the following tips:
- If you want to make funding fees, the best way is to focus on the long/short distribution. Based on the historical data, generally, the short side can gain funding fees.
- Profit grids may be affected by many factors including underlying asset, price range, take profit price and stop loss price, grid interval, etc. It is suggested that novices choose AI parameters to optimize bot settings and yield greater profit.
- If you choose the right side, there’ll be more futures profit; however, if not, running the bot for the longer term can also make up for the losses.
- With only a handful of funds, it is recommended to raise the leverage or to choose a trading pair with a lower value of a single lot.