Futures Grid parameters explained

Ideal for oscillating markets, the futures grid strategy has the advantages of automatic trading and risk control. Setting the parameters is a key part of using and profiting from this tool.

Before getting started, let us guide you through some of the keywords and parameters so that you can better navigate the futures grid strategy.

Futures grid glossary

1. Futures grid: an automated strategy for trading futures to buy low and sell high in a specific price range. Users can simply set the highest and lowest price in the range, decide on the optimal level of grid subdivisions and start running the strategy.

2. Long grid: best for oscillating markets, automatically buying low and selling high.

3. Short grid: best for oscillating markets, automatically selling high and buying low.

4. AI strategy: using the grid strategy parameters recommended by the system. Recommended parameters are generated by calculating the most suitable parameters for the current market based on a smart algorithm combined with backtesting of the past 7-day market data.

5. Manual creation: users set their parameters and trigger conditions based on their judgment of the oscillating range.

Order parameters

1. Highest price: the upper limit of the price range for grid trading. No orders will be placed when the market price exceeds the highest price.

2. Lowest price: the lower limit of the price range for grid trading. No orders will be placed when the market price is lower than the lowest price.

3. Price range: formed by the pre-determined highest and lowest price. The strategy bot will buy low and sell high as the price fluctuates within the scope.

4. Number of grids: also called ‘grid number’, where the price range is equally divided into corresponding portions for the strategy to place orders accordingly.

5. Leverage: the leverage multiplier used in futures trading by the strategy. Currently, the maximum leverage allowed is 125X.

6. Trigger price: grid trading will be enabled when the market price reaches the set price.

7. Invested amount: the amount of crypto invested in the grid strategy. The maximum available means the maximum amount of this currency that can be transferred out of your trading account.

8. Take-profit/Stop-loss price: the strategy will be terminated when the market price reaches the set price.

9. Opening position limit order: setting parameters to control the range between the initial entry price and the order price within a certain proportion (due to the high volatility of the market, the final transaction price may be different from the order price. This way you’ll be able to control the slippage.

10. Arithmetic mode: each grid has an equal price difference (for example, 1, 2, 3, 4).

11. Geometric mode: each grid has an equal price difference ratio (for example, 1, 2, 4, 8).

12. Profit per grid: price difference of a single grid *min (the amount bought and the amount sold in a single grid interval).

13. Grid profit: the total profit of each grid within the grid range.

14. Available funds: funds available in the account for futures grid trading.

15. Total amount: available funds after using leverage, where the total amount = margin x leverage.

16. Estimate liquidation price (long): estimated liquidation price when all long positions are filled and the maximum number of long positions are opened.

17. Estimate liquidation price (short): estimated liquidation price when all short positions are filled and the maximum number of short positions are opened.

18. Estimate liquidation price (order parameters): estimated liquidation price for the current position.

19. Actual leverage (order parameters): actual margin trading risk of the current position. Actual leverage = position value ÷ strategy account assets.

PnL parameters

1. Total profit: profit since the grid strategy started running. Total profit = grid profit + accrued PnL

2. Grid profit: total realized PnL generated by all grid trading orders deducting the transaction fees.

3. Accrued PnL: PnL resulting from the rise or fall of the base currency of the current trading pair (the price change of the last price of the base currency relative to the average entry price). Accrued PnL = (current price - average entry price) x current position

4. APY = total profit ÷ initial margin ÷ days running x 365

Disclaimer

Futures grid trading is a transaction tool. The above-mentioned information should not be considered as financial or investment advice from Bitget. Profits from futures grid trading may be impacted by one-sided market conditions or improper price intervals. You can adjust your futures grid trading strategy according to market conditions. Your use of this tool is subject to your unconditional acceptance of all of Bitget's terms and conditions. You should be fully aware of the risks associated with cryptocurrency investments and proceed with caution. You agree that all investments on Bitget.com reflect your true investment intent, and you unconditionally accept the potential risks and gains of your investment decisions.