Futures Grid Trading Guide

Create steps:
(1) After entering the APP, select "Grid Trading"

(2) Enter parameters on the transaction page and confirm the investment amount to create a grid. (The funds invested after the grid is created will be isolated from the trading account and used independently in the grid strategy)

(3) After the creation is complete, you can view and manage the grid strategy in the "Strategy" at the bottom of the transaction page.

(4) During the operation of the strategy, the income generated by grid arbitrage can be withdrawn at any time, or the grid can be stopped.

Basic Settings

1 Select the direction
Buy / Long: The strategy is to buy low and sell high, buy once when one grid falls, and sell once when one grid rises, applicable to trends and turbulent bull market conditions, and open long positions when the grid is created.
Sell / Short: The strategy is to buy high and sell low, sell once when a grid falls, and buy once when a grid rises. It is suitable for trends and turbulent bear market conditions. Open a short position when the grid is created
Neutral : Start price with strategy All grid settings above are short (buy high and sell low), start price with strategy All grid settings below are long (buy low and sell high)
Applicable to the oscillating market for consolidation, there is no initial position when the grid is created.

2 Create policy parameter description
Arithmetic/Geometric setting
The arithmetic  is equal to the price difference between each grid
The Geometric is equal to the profit between each grid

Minimum/Maximum Price: The price range in which the strategy operates. If the range is exceeded, the strategy will no longer execute the order operation.
Number of grids: The number of grids indicates the number of pending order cells divided in the shock interval (affecting profit per grid).
The system will calculate your initial margin value based on the number of grids, leverage and the price range you set. Please note that the denser the grid, the higher the corresponding initial deposit amount.
Leverage: The leverage multiple used in contract transactions in the strategy. The maximum leverage currently allowed is 50x
Stake Margin: The amount of currency staked in the grid strategy. Among them, the maximum available is equal to the current maximum transferable amount of the currency in the trading account.
Take Profit/Stop Loss Price: When the market price reaches this price, the strategy will automatically stop and the market price will close the position.
Estimated liquidation price: The actual estimated liquidation price of the position currently held.

3 Operation strategy
Buy/Long
When the price falls to a grid's buy order price and is filled, the strategy will form a sell order in the upper grid of the grid.

Sell / Short
When the price rises to the sell order price of a grid and is filled, the strategy will form a buy order in the lower grid of the grid.

Neutral
When the price falls to a grid's buy order price and is filled, the strategy will place a sell order on the grid's upper grid.
When the price rises to the sell order price of a grid and is executed, the strategy will send a buy order in the lower grid of the grid.

Example(take ETH/USDT contract as an example)

Setting parameters

Grid properties: long grid

The lowest price in the range: 1,600 USDT

The highest price in the range: 1,800 USDT

Number of Grids: 5

Grid Mode: Arithmetic

Leverage: 2x

Investment amount: 5000USDT

ETH/USDT price when the strategy was created: 1672USDT

strategy run

The first stage - initial pending order: the system will calculate the price of each gear of the strategy as 1600, 1640, 1680, 1720, 1760, 1800, and then place a buy order with 2 times leverage at these prices

price direction
1800 --
1760 buy
1720 buy
1680 buy
1640 buy
1600 buy
If the market depth is good, the buy order higher than the market price will be executed to open the position, and then the sell order to close the position will be placed at the position one level higher.

price direction
1800 sell
1760 sell
1720 sell
1680 --
1640 buy
1600 buy
Therefore, the status of pending orders after the strategy is activated is that there is a buy order to open a position at each price of 1600 and 1640, and a sell order to close a position is placed at each price of 1720, 1760 and 1800.

The second stage-strategy operation: If the market price falls below 1640, the buy order will be executed at that position, and the program will automatically place a sell order at the corresponding upper position of the small grid of 1640-1680 (that is, the price of 1680). If the price rises, place a buy order at the corresponding lower position after the sell order is executed.

price direction
1800 sell
1760 sell
1720 sell
1680 --
1640 buy
1600 buy

In this way, by cyclically placing orders and transactions with market fluctuations, you can continue to earn fluctuation income in volatile market conditions.

Setting parameters

Grid Properties: Short Grid

The lowest price in the range: 1,600 USDT

The highest price in the range: 1,800 USDT

Number of Grids: 5

Grid Mode: Arithmetic

Leverage: 2x

Investment amount: 5000USDT

ETH/USDT price when the strategy was created: 1672USDT

The first stage-initial pending order: the system will calculate the price of each gear of the strategy as 1600, 1640, 1680, 1720, 1760, 1800, and then place an opening sell order with 2 times leverage at these prices

price direction
1800 sell
1760 sell
1720 sell
1680 sell
1640 sell
1600 --
If the market depth is good, a sell order lower than the market price will be executed to open the position, and then a buy order to close the position will be placed at the lower position.

price direction
1800 sell
1760 sell
1720 sell
1680 --
1640 buy
1600 buy
Therefore, the status of pending orders after the strategy is activated is that there are buy orders for closing positions at each price of 1600 and 1640, and sell orders for opening positions at each price of 1720, 1760 and 1800.

The second stage-strategy operation: If the market price rises to exceed 1720, the sell order at this position will be executed, and the program will automatically place a buy order at the corresponding lower position of the small grid of 1680-1720 (that is, the price of 1680). If the price falls, place a buy order at the corresponding lower position after the sell order is completed.

price direction
1800 sell
1760 sell
1720 --
1680 buy
1640 buy
1600 buy

In this way, by cyclically placing orders and transactions with market fluctuations, you can continue to earn fluctuation income in volatile market conditions.

Setting parameters

Grid Properties: Neutral Grid

The lowest price in the range: 1,600 USDT

The highest price in the range: 1,800 USDT

Number of Grids: 5

Grid Mode: Arithmetic

Leverage: 2x

Investment amount: 5000USDT

ETH/USDT price when the strategy was created: 1672USDT

The first stage - initial pending order: the system will calculate the price of each gear of the strategy as 1600, 1640, 1680, 1720, 1760, 1800, and then place an opening order with 2 times leverage at these prices. A pending sell order that is higher than the market price opens a position, and a pending buy order that is lower than the market price opens a position.

price direction
1800 sell
1760 sell
1720 sell
1680 --
1640 buy
1600 buy
Therefore, the status of pending orders after the strategy is activated is that there are buy orders for opening positions at each price of 1600 and 1640, and sell orders for opening positions are placed at each price of 1720, 1760, and 1800.

The second stage-strategy operation: If the market price falls below 1640, the buy order will be executed at that position, and the program will automatically place a sell order at the corresponding upper position of the small grid of 1640-1680 (that is, the price of 1680). If the price rises, place a buy order at the corresponding lower position after the sell order is executed.

In this way, by cyclically placing orders and transactions with market fluctuations, you can continue to earn fluctuation income in volatile market conditions.

4 Precautions
4.1. After the market price exceeds the highest/lowest price of the grid interval, the program will not continue to operate. If the price continues to run unilaterally and does not return to the grid interval, the position held at this time may suffer floating losses , and even risk liquidation. Therefore, it is recommended to set the stop loss price at a reasonable position on the upper and lower sides of the grid, so as to stop the loss in time.

4.2. The funds invested after the grid is created will be isolated from the trading account and used independently in the grid strategy. Therefore, users need to pay attention to the risks brought to the overall position in the trading account after the funds are transferred out.

4.3 If during the operation of the grid strategy, the currency encounters unpredictable abnormal situations such as suspension and delisting, the grid strategy will automatically stop.
4.4 After the contract grid is created, if the margin is insufficient to pay the funding fee or the order cannot be placed due to excessive floating losses of the positions, the grid strategy will be stopped by the system risk control. Please increase the margin in time to keep the grid running properly.