Trading Bots

Crash course on Futures Martingale

2023-06-13 04:490244

Master Futures Martingale With Bots Web Guide

Master Futures Martingale With Bots App Guide

1. What is the Futures Martingale product about?

The basic principle behind the Martingale strategy is for investors to trade in a single direction in a two-sided market. If they lose the trade, a larger trade will be opened in the opposite direction. When the market bounces back, the next profitable trade will exceed the combined losses of all previous trades, with additional profit. In other words, you make profits from buying low and selling high. The Martingale strategy has gained popularity among various investors thanks to its advantages. However, it is still subject to market risks, and is not a principle-guaranteed strategy. Investors need to control the risks.

Bitget has launched the Martingale bot for futures trading to cater to diverse user needs. Bitget's Futures Martingale supports two-way transactions, meaning it can both go long and short to make a profit by leveraging potential market reversals. The Futures Martingale can have customizable leverage and generate recurring profits, providing traders with more trading opportunities and flexibility.

2. Futures Martingale examples

It is important to note that the Martingale strategy does not work in a one-sided market. It is best for mid to long-term volatile markets.

When trading long in a mid to long-term volatile market, the Martingale bot will continuously buy the dip. The investor can apply higher leverage to get higher profits during a rebound.

For example, the bot initially places a BTC futures trade at US$10,000 (base order). If the price of BTC drops by 1%, the bot will automatically place another order (safety order) at US$9900. Similarly, the bot buys again at US$9801 (safety order), and so on. The average entry price will be reduced gradually.

When the price of BTC bounces back and reaches the take-profi t price, the Martingale bot will execute a sell order and complete the trading cycle. Note that the take-profit price is adjusted according to the take-profit target. If the investor sets a 10% take-profit target, the take-profit price will be adjusted according to the average entry price of the previous orders. The bot will automatically sell when the ROI reaches 10%, and complete this trading cycle.

Long Futures Martingale: Best for users who are bullish on after-market but expect the price to drop before rising. After opening long, the margin will be implemented according to the pre-set intervals and fill ratio when the price falls.

Short Futures Martingale: Best for users who are bearish on after-market but expect that the price may rebound. After opening short, the margin will be implemented according to the pre-set intervals and fill ratio when the price falls.

3. Advantages of Futures Martingale

1. Two-way trading, good for both bullish and bearish markets

Investors can go long and short with the Futures Martingale product to buy the dip, or profit by leveraging potential market reversals.

2. Customize parameters to control your risk

Traders can adjust the parameters of the Martingale bot according to their own trading habits and risk appetite, including single take-profit target and safety order multipliers, so that the risk is controlled.

Using bots lowers the entry threshold for traders who are not as experienced. There are three types of trading styles for users to choose from in the AI mode: Aggressive, Secure, or Conservative. Users can select the style that aligns with their needs without having to input various different parameters.

3. Boost profit with leverage

Bitget's Futures Martingale supports up to 125x leverage, allowing investors to leverage funds at low cost. It meets the different risk appetites of investors.

The Futures Martingale bot helps investors buy the dip in batches at the pre-set percentages, minimizing the risk. With this high level of safety, as long as the selected assets are of high quality, the asset price will rebound and gain profit even if there is a drawdown in the short term.

Disclaimer

Futures Martingale is a transaction tool. The abovementioned information should not be considered financial or investment advice from Bitget. Profits fro m Futures Martingale may be impacted by one-sided market conditions or improper price intervals. You can adjust your Futures Martingale bots according to market conditions.

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