1.What is Gate.io Future Grid?
Just as its name implies, Future Grids are a combination of spot grid trading and futures trading. This strategy will divide your investment into several grids and keep buying low and selling high within the price range. This strategy can bring grid profits to users when going long or short.
2.What kind of investors are suited for Future Grids?
Investors who want to magnify profit via leverage in grid trading. Without keeping an eye on the market, investors can complete traditional contract trading via future grids. The system automatically helps them trade and arbitrage according to the set parameters. In this way, Investors can achieve stable gains in spite of market volatility. For investors who want to magnify their profit on the basis of grid trading, future grids can perfectly match their needs.
Investors who want to go short. In a bearish market environment, users can set up short trades to meet the demand for gains through quantitative trading, even if the coin price is falling.
3.Operational procedure for Future Grids
Navigation - Click on “Copy Trading” - Select “Strategies Templates” - Click on “Create Strategy” in the Future Grids column - Select the trading pair - Set parameters - Click “Create” as shown below
Long/Short: If the market is forecast to rise, you can choose to go long, otherwise you can choose to go short.
Price range: The lower limit price refers to the lowest buying price for executing grid transactions. If it is lower than this price, no further buying is allowed. In contrast, the upper limit price is the highest selling price for executing grid transactions. If it is higher than this price, no more selling is allowed.
Leverage Ratio: You can devote a small amount of funds and gain more profit by increasing the leverage, but the risk of liquidation will also increase.
Number Of Grids: The number of grids is basically the number of orders. Under the same price range, the more orders there are, the more grids there will be, and the more frequently you can buy low and sell high. (limited grids: 2 to 50)
Arithmetic: The price interval of each grid is the same. The calculation method:
(Upper limit price-Lower limit price) / (Number of grids-1)
Geometric: The price spacing of each grid is equal in proportion, and the calculation method is as follows:
Base currency buy/sell qty per grid: In the future grids, the base currency buy/sell qty per grid=1
Contracts increasing: Quantity increment is off by default. When it is on, you can choose to increase the number of trades per grid by quantity or proportionally as shown below.
If the base currency buy/sell qty per grid=1 and contracts of increment per grid=2: Then in the first grid, it will buy/sell 1 contract, and in the second grid it will buy/sell 3 contracts(1+2). There will then be 5 contracts(1+2+2) for selling/buying in the third grid, and so on.
Trigger price of the strategy: The grid strategy will only run when the latest price is no greater than the trigger price. The trigger price should be below the latest price and should be within the range of the lowest price and highest price.
Auto stop-loss ratio: When your position is losing value and the % difference between average entry price and mark price is larger than the stop-loss ratio, the position will be closed at the market price and the strategy terminates.