Automated trading is an increasingly popular method of profiting from price volatility in the cryptocurrency markets. OKX provides a range of powerful, cutting-edge trading bot strategies that perform various functions without requiring active management. Among them is futures grid mode — a futures trading bot that automatically buys and sells futures contracts at predetermined price levels.
Although this tutorial focuses exclusively on our futures trading bot, it’s just one of several automated trading solutions we offer. The other bot modes are spot grid, recurring buy, arbitrage order, iceberg order and TWAPs. You can learn more about each in this dedicated guide to OKX trading bots.
What is the futures grid trading bot, and what are its advantages?
OKX’s futures grid trading bot is an automated futures contract trading strategy. The bot sets an order grid at predetermined price levels above and below the initial entry price. In its simplest terms, the bot sells futures contracts when the price is above entry and buys when below. By automatically buying low and selling higher, the trader profits from price volatility without managing their positions actively.
The futures grid trading bot has three modes: long, short and neutral. With long selected, the bot will only open and close long positions. With short selected, it only opens and closes short positions. With neutral selected, the bot will open or close shorts above the market price and open or close longs below the market price.
A critical difference between the spot grid automated strategy and the futures trading bot is the ability to trade with leverage. In futures grid mode, you can amplify position size with leverage, enabling you to trade greater volume than otherwise possible. Be warned, though. Leverage is a more advanced tool that carries much greater risk than simple spot trading.
If you’re going to trade leveraged positions with the futures grid trading bot, make sure you fully understand the risks first. You can learn more about leverage and margin requirements in this dedicated guide.
Automate buys and sells with OKX’s futures trading bot
The futures grid trading bot is currently only available for USDT-margined futures contracts. Therefore, you must select a futures contract to access it.
From the OKX app home screen, tap Trade at the bottom.
In the app’s “Trade” section, tap the trading pair at the top of the screen.
Tap Futures, select USDT-margined and choose a futures contract for the underlying asset you want to trade.
Next, tap MNL in the top-right corner and tap Trading bot mode.
Tap the highlighted menu to select your trading bot.
Then, tap Futures grid.
Futures grid AI strategy
Like spot grid, the easiest way to use the futures grid trading bot is with the back-tested AI strategy. After selecting your trading pair, tap AI strategy.
Tap Long, Short or Neutral to select the strategy deployed and enter the total margin you want to use. Then, tap Create.
Check your order details and add an optional take profit or stop-loss order. Then, tap Confirm.
The position will then appear in the “Open orders” section at the bottom of the “Trade” section. Here, you can check its current profitability and other details, and exit the position by tapping Close.
Manually setting the futures grid parameters
To enter your own futures grid parameters, select the futures grid trading bot and tap Set myself.
First, select Long, Short or Neutral. Next, enter the grid’s upper and lower price bound, and the total number of grids. Then, select “Arithmetic” or “Geometric” to determine exactly how the grid lines are spaced.
Arithmetic mode will space grid lines at equal price intervals. For example, if you’re trading BTC with an upper price of 25,000 USDT and a lower price of 15,000 USDT, and 10 grids, each grid line will be 1,000 USDT apart.
Geometric mode uses a fixed percentage to determine grid placement. This results in widening grids further out from the starting price.
You can also add leverage to your trades to increase your position size relative to the margin used.
When you’ve entered the futures grid bot parameters, tap Create.
On the next screen, check the order details and add a price at which to stop loss or take profit. Finally, tap Confirm to place your order.
The position will then appear in the “Open orders” section at the bottom of the “Trade” section. Here, you can check its current profitability and other details, and exit the position by tapping Close.
Profit from futures volatility with the futures grid trading bot
OKX’s futures trading bot is a powerful automated trading strategy that seeks to profit from cryptocurrency futures market volatility. By automatically buying low and selling high, users make money from the difference in prices in rapidly moving markets.
The trading bot’s futures grid mode creates a grid of price levels at which to trade. You can either set these yourself or use our backtested AI strategy. When the price moves up, the bot executes orders according to the strategy — long, short or neutral — you are following.
Futures grid is just one of the powerful trading bots OKX offers. Try it yourself today to automate trades and lock in profits from futures contract price volatility. Game on!
Source: https://www.okx.com/academy/en/futures-grid-trading-bot