Invest $50 And Make $120 in 7 Days Grid Trading On Binance Futures
Binance grid trading for the futures market is what everyone is talking about now. As a crypto trader who frequently places buy and sell orders to make quick profits, grid trading is one of the best bots you can try today.
A grid method allows you to plan out entry and exit orders ahead of time at predetermined intervals, or “legs,” from the current market price.
As a result, your account for all conceivable breakout possibilities and ensure that a pending order will be activated to enter you into the Binance Futures trade regardless of the trend’s direction. The size of your “grid” is determined by the number of levels (i.e., stop orders) put in either direction.
Buy stop entry orders are set above the current market price in a grid trading technique. If a bullish breakout occurs, these orders will instantly place you into a long position.
In the case of a bearish breakout, sell stop entry orders are placed below the current market price to initiate a short position. Grid methods work in both trending and turbulent markets, but they work better in the former
What Is Grid Trading?
Grid trading is a bot that helps futures traders automate tasks in Binance Futures like placing buy and sell orders.
All the trader has to do is set a price range and fill in the upper and lower prices for the grid bot to create predetermined intervals and start trading on that range on your behalf.
First of all, grid trading on Binance is used mostly when the market is not trending or swinging but in a ranging or fluctuating market.
For example, you may decide to put a buy trade at every $200 below the bitcoin price and sell orders at every $200 above the bitcoin market price.
As the market fluctuates or ranges, the grid bot continues to automatically run the orders for you once the conditions are met.
This strategy aims to profit from tiny price adjustments.
The higher the number of grids you use, the more transactions you’ll have.
There is a catch with grid trading on Binance futures, if you have the self-control to keep making smaller profits frequently and not go for the one big profit by buying the dip and waiting months to sell it high, then grid trading is for you.
Grid settings, such as the grid’s top and lower bounds and the number of grids, can be customized and controlled by users. The system will automatically buy or sell orders at predetermined prices after the grid has been constructed.
How Does Grid Trading Work On Binance
Let’s say you expect Bitcoin to trade between $38,000 and $42,000 in the following 24 hours. You could use a grid trading system to trade futures within this expected range in this situation.
You could set strategy settings on the grid trading screen, such as:
- The price range’s upper limits = 42,000
- Lower limits are = 38,000
- The number of grids = 60
- Your initial margin = $50
- Leverage = 100x
Plugin those figures into your grid bot on Binance, it will create 60 grids from 38,000 to 42,000 as below.
With an initial trading capital of just $50 and leverage of 100:1 you will be trading with an investment of $5000.
Your profit per grid at this range will be $2.
Yes, each grid will earn you $2 if everything goes in your favor
Multiply that by 60 grids = 60 x $2
According to that chart on Binance, on the 21st of April, BTC was around 42,000 and on April 27th it hit 38,000. This means it took Binance 7 days to range from 42,000 to 38,000.
You would have made $120 on this trade within 7 days with just $50.
Risk Warning:
Grid trading as a strategic trading tool is not intended to be construed as financial or investing advice by Binance. Grid trading is done at your own risk and judgment.
Binance shall not be held liable for any losses incurred as a result of your usage of the function. Users should study and fully comprehend the Grid Trading Tutorial and practice risk management and sensible trading within their financial means.
Binance Futures Grid Trading FAQ
Does Binance accept trading bots?
Yes
What do i use Binance trading bots for
You can use them to automate your trading 24/7 including applying your own trading strategy.
Which trading bots can i use on Binance?
You can use a wide range of bots on Binance incluidng Grid tradign bots and Dollar-Cost-Average DCA bots.
Are Binance grid trading bots profitable?
The goal of the Binance grid trading bot is to make money for it’s traders using the trading concept of buying low and selling high at an expected range
What does Binance grid trading bots do?
Binance grid trading bots automate buying and selling of cryptocurrencies at a given price range.
How do i make money on Binance grid trading bot?
The grid trading bots sets buys and sell orders are your preferred price and then when the prices goes bearish or down, it buys.
Once the price goes bullish or up, it sells — and you are left with profit whcih is the difference between the buy and sell price.
How many grids ranges can i set up?
You can set up as many as 149 grids.
Can i repeat my profitable grid several times?
Yes.
If the grid activates at a particular price range — buys low, then sells high it will hit a profit. If the price comes down to the same spot, the grid bot will activate again until you tell it to stop.
Can i make profit with grid trading?
Yes
Can i lose my money with grid trading
Yes
Is grid trading legal?
Yes
Is grid trading on Binance safe?
Yes
Is grid trading same as DCA bots?
No.
Grid bots work best for swing traders or sideways market while DCA bots work best for long and short day trader
When to use grid bots on Binance
It is recommended to grid trade on Binance once the price fluctuations are low or rapid below 2% daily.
Benefits of Grid Trading
Grid trading has several advantages, one of which is that it allows you to trade systematically without having to predict the direction of a trend. You may set up your grid trading technique and let it do the heavy lifting for you instead of continually monitoring real-time market moves.
Trustworthy Crypto Trading Strategy
Grid Trading is a well-established, well-tested, and profitable trading strategy that has been around for a long time. There have been some successful traders who have used it for decades on a variety of markets.
Due to its great volatility, the crypto industry has shown to be one of the most reliable venues for Grid Trading strategies.
Usability
Because it does not contain any complicated calculations, measurements, or market indicators, the strategy is simple to grasp and implement. For entities with no prior experience in the crypto trading markets, it will be straightforward to set up.
Adaptability
Binance Futures Grid Trading uses the most basic trading concept (buy low, sell high, profit the difference), so it can be used in almost any market and efficiently create a profit, regardless of trend or market behavior.
By setting the price range and number of grids, you can actively control the strategy’s frequency and duration.
Grids can be set up for the short term, capturing micro profit from all of the day’s little changes with hundreds of trades every hour, or for the long term, picking a big range and leaving it to run for months to profit from every larger trend shift.
Enhance Risk Management
The ability to choose your grid strategy lets you to more actively control the risk/reward level than in most other types of trading.
You can use a GRID Bot on Binance futures to make a consistent small profit with absolutely no risk (for example, by using a stablecoin combination like BUSD/USDT), or you can risk more for potentially large returns (e.g., with a low market cap coin that has high fluctuations)
Automated Trading
Because of its simple reasoning and the fact that all of its operations are preset and independent of market behavior, Grid Trading is particularly amenable to automation.
Not only that but employing a Trading Bot to execute Grid Trading on Binance futures is far easier and more efficient than manually executing the technique.
It’s one of the best options for traders who want to start automating their trading because it can work in virtually every market, in any situation, at any time, and for almost any term.
How to Set-up Your Futures Grid Trading Strategy
- Grid trading step 1: Click here to Login or register for Binance
- Grid trading step 2: Go to the [Deriavatives] then [USDS-M Futures] trading platform
- Grid trading step 3: Click on [strategy], then select [Futures Grid]
- Grid trading step 4: Switch from Automatic to Manual by click on [Manual] so you can set custom settings
- Grid trading step 5: Enter your lower price, upper price, Grids…
- Grid trading step 6: Click on [Advanced] to tweak your Grid bot further with Trigger Price, Stop Bottom Price, Stop Top Price…
Futures Grid Trading Glossary
- Neutral: Recommended for markets were price bounces between a specific high and low price.
- Long: Recommended for bull markets that are volatile or trending
- Short: Recommended for bear markets that are volatile or trending
- Cross Margin: All cross positions under the same margin asset share the same asset cross margin balance. In the event of liquidation, your assets full margin balance along with any remaining open positions under the asset may be forfeited.
- Isolated Margin: Manage your risk on individual positions by restricting the amount of margin allocated to each. If the margin ratio of a position reached 100%, the position will be liquidated. Margin can be added or removed to positions using this mode.
- Lower price: the highest price range you want to set for the Grid bot
- Upper price: The lowest price range you want to set for the grid bot
- Grids: The number of grids you want between the price range.
- Arithmetric: Each grid created will have an equal price difference
- Geometric: Each grid created will have an equal price ration difference
- Profit/Grid: The profit you may get for each grid you setup
- Grid Trigger (optional): If can set a trigger for orders to start once the market price goes above or below the Last price or Mark price trigger.
- Stop Trigger (optional): Is the Stop-loss of Grid trading. This will stop the Grid bot once the market price falls below the SL Bottom price or rises above the SL Top Price you have set.
- Cancel all orders on stop (optional): The system will cancel all unfulfilled orders for that token or coin once the Grid bot is stopped.
- Close all positions on stop (optional): The system will close all open positions at the market price for the token or coin when the grid bot is stopped.
Conclusion
Grid trading is essentially an attempt to profit from slight price changes. It assists you in trading logically and avoiding FOMO where possible through quantitative trading.
