How to Master Futures Grid Trading
This module will primarily focus on the operational level, introducing how to deploy grid strategies using three methods: Ultra AI, recommended strategies, and manual settings, and guiding users on how to progressively master efficient trading paths from small capital and low leverage.
1. Understand the Mechanism of Contract Grid Trading
Before starting to use Gate’s contract grid, you need to review Gate’s contract grid product documentation and other materials, or learn about basic concepts of contracts and grids through professional third-party media platforms, understanding features such as leverage, two-way opening positions, and automated execution.
2. Start with Low Leverage and Small Capital
It is recommended that spot users start with low leverage of 1-2x and a small amount of funds to gradually adapt to the volatility of Gate contract trading. After accumulating some experience, gradually increase leverage and invested capital.
3. Reasonably Set Grid Parameters
- Leverage Multiplier: Determined based on your risk tolerance and the selected cryptocurrency, for example, if you are risk-averse, you can choose mainstream coins like BTC with small leverage multiples;
- Price Range: Set reasonable upper and lower grid price limits covering the expected fluctuation range; this requires some judgment of the overall market trend or using technical analysis indicators, such as: using Bollinger Bands’ upper and lower rails in different time periods, MA line’s golden and death crosses, historical highest and lowest prices over a period, obvious support and resistance levels, etc.
- Number of Grids: The number of grids affects the spacing between each grid. The larger the price range, the more grid numbers needed, with more grids meaning smaller spacing and higher trading frequency. The grid number setting also requires market trend judgment - more grids for frequent market fluctuations, fewer for less volatile markets.
- Single Investment Amount: Allocate funds for each trade based on total capital and grid numbers to avoid exhausting funds due to overly dense grids.
4. Balance Between Fees and Grid Numbers:
Basic Calculation Formula for Single Grid Earnings: Per Grid Earnings = (Sell Price - Buy Price) × Contract Quantity × Leverage Multiplier - Fees
Calculate Single Grid Earnings and Fee Ratio: When selecting grid numbers, ensure each grid trade’s earnings can cover fees. Calculate the proportion of fees to total trading earnings, maintaining a reasonable ratio.
Fee Proportion = Fees/Per Grid Earnings × 100%
Generally, fee proportion should be kept below 5%, with lower being better.
5. Utilize Tools and Resources
- Market Analysis Tools: Use technical analysis tools to assist in judging market trends and selecting appropriate grid parameters. Common digital currency market analysis tool websites include: TradingView, Glassnode, Messari, CoinGecko, CoinMarketCap.
- Learning Resources: Read professional articles, participate in training courses, or join trading communities to continuously improve trading knowledge and skills. Besides learning on Gate Learn (official learning section), you can also learn from third-party platforms like Coin Bureau, Crypto.com University.
Pelajaran 1:What Is Futures Grid Trading?
Pelajaran 2:Advantages of Gate Futures Grid
Pelajaran 3:Futures Grid Parameters Explained
Pelajaran 4:How to Master Futures Grid Trading
Pelajaran 5:Use Cases and Key Considerations for Futures Grid Trading
Pelajaran 6:Highlights and User Guide for Gate Futures Grid
How to Master Futures Grid Trading
This module will primarily focus on the operational level, introducing how to deploy grid strategies using three methods: Ultra AI, recommended strategies, and manual settings, and guiding users on how to progressively master efficient trading paths from small capital and low leverage.
1. Understand the Mechanism of Contract Grid Trading
Before starting to use Gate’s contract grid, you need to review Gate’s contract grid product documentation and other materials, or learn about basic concepts of contracts and grids through professional third-party media platforms, understanding features such as leverage, two-way opening positions, and automated execution.
2. Start with Low Leverage and Small Capital
It is recommended that spot users start with low leverage of 1-2x and a small amount of funds to gradually adapt to the volatility of Gate contract trading. After accumulating some experience, gradually increase leverage and invested capital.
3. Reasonably Set Grid Parameters
- Leverage Multiplier: Determined based on your risk tolerance and the selected cryptocurrency, for example, if you are risk-averse, you can choose mainstream coins like BTC with small leverage multiples;
- Price Range: Set reasonable upper and lower grid price limits covering the expected fluctuation range; this requires some judgment of the overall market trend or using technical analysis indicators, such as: using Bollinger Bands’ upper and lower rails in different time periods, MA line’s golden and death crosses, historical highest and lowest prices over a period, obvious support and resistance levels, etc.
- Number of Grids: The number of grids affects the spacing between each grid. The larger the price range, the more grid numbers needed, with more grids meaning smaller spacing and higher trading frequency. The grid number setting also requires market trend judgment - more grids for frequent market fluctuations, fewer for less volatile markets.
- Single Investment Amount: Allocate funds for each trade based on total capital and grid numbers to avoid exhausting funds due to overly dense grids.
4. Balance Between Fees and Grid Numbers:
Basic Calculation Formula for Single Grid Earnings: Per Grid Earnings = (Sell Price - Buy Price) × Contract Quantity × Leverage Multiplier - Fees
Calculate Single Grid Earnings and Fee Ratio: When selecting grid numbers, ensure each grid trade’s earnings can cover fees. Calculate the proportion of fees to total trading earnings, maintaining a reasonable ratio.
Fee Proportion = Fees/Per Grid Earnings × 100%
Generally, fee proportion should be kept below 5%, with lower being better.
5. Utilize Tools and Resources
- Market Analysis Tools: Use technical analysis tools to assist in judging market trends and selecting appropriate grid parameters. Common digital currency market analysis tool websites include: TradingView, Glassnode, Messari, CoinGecko, CoinMarketCap.
- Learning Resources: Read professional articles, participate in training courses, or join trading communities to continuously improve trading knowledge and skills. Besides learning on Gate Learn (official learning section), you can also learn from third-party platforms like Coin Bureau, Crypto.com University.