Introduction to Futures Grid Parameters

Although the futures grid strategy has advantages such as being suitable for oscillating markets, automatic trading, and risk control, setting the right parameters is key to using this tool effectively and profitably. Before using the futures grid strategy, users should understand the relevant key terms and definitions of various parameters to better manage the strategy.

Futures Grid Related Vocabulary:

Futures Grid: A futures grid strategy is an automated strategy for trading contracts by buying low and selling high within a specific price range. Users only need to set the highest and lowest prices of the range and decide on the number of grids to start the strategy.

Long Grid: Suitable for upward oscillating markets, it automatically buys low and sells high.

Short Grid: Suitable for downward oscillating markets, it automatically sells high and buys low.

Neutral Grid: Suitable for oscillating markets, automatically buying low and selling high or vice versa.

AI Strategy: Use system-recommended grid strategy parameters directly (Recommendation logic: Parameters suitable for recent market conditions are recommended after backtesting 7 days of market data and combining it with an intelligent algorithm).

Manual Creation: Set parameters and trigger conditions based on your own judgment of the oscillation range of the market.

Order Parameters:

• Highest Price: The upper limit of the grid trading price range. Orders will stop being executed when the market price is higher than this.
• Lowest Price: The lower limit of the grid trading price range. Orders will stop being executed when the market price is lower than this.
• Price Range: A price range formed by the set highest and lowest prices. If the price oscillates within this range, the strategy robot will help users arbitrage by buying low and selling high.
• Number of Grids: The number of grid cells, with the system dividing the price range into corresponding portions for order placement.
• Leverage Multiples: The leverage multiple used in contract trading within the strategy. The maximum allowed leverage is currently 150x.
• Trigger Price: The grid starts running when the market price hits the set price.
• Investment Amount: The capital invested in the grid strategy, where the maximum available equals the maximum transferable amount in the strategy wallet.
• Take Profit/Stop Loss Price: The strategy terminates when the market price hits the set price.
• Arithmetic Mode: Indicates that the price difference between each grid is the same (e.g., 1,2,3,4).
• Single Grid Profit: Single grid price difference * min(quantity bought in that grid range, quantity sold in that grid range).
• Grid Profit: The sum of profits from all individual grids within the grid range.
• Available Funds: Funds in the strategy wallet available for futures grid trading.
• Investment Amount: The scale of available funds after using leverage, Investment Amount = Invested Margin * Leverage.
• Estimated Liquidation Price for Longs: Before the strategy runs, assuming all long orders in the grid are filled, the estimated liquidation price when the maximum number of long positions is opened.
• Estimated Liquidation Price for Shorts: Before the strategy runs, assuming all short orders in the grid are filled, the estimated liquidation price when the maximum number of short positions is opened.
• (Position Parameter) Liquidation Price: The actual estimated liquidation price of the current position.

Profit and Loss Parameters:

• Total Revenue: The total revenue since the grid strategy started running. Total Revenue = Grid Profit + Floating Profit/Loss.
• Grid Profit: The realized profit and loss generated by grid trading, accumulating all grid pair profits minus transaction fees.
• Floating Profit/Loss: The floating profit or loss generated by the rise or fall of the base currency of the current currency pair (the latest price of the base currency of the currency pair compared to the average purchase price). Floating Profit/Loss = (Current Price - Average Buy Price) * Current Position.
• Annualized Return = Total Profit and Loss / Total Investment Amount x 365 days x 24 hours x 60 minutes / Operation Duration (minutes) * 100%
• Grid Profit = Total Investment Amount x 365 days x 24 hours x 60 minutes / Operation Duration (minutes) * 100%

Disclaimer

Futures grid trading is a tool and not financial or investment advice from BYDFi. Profits can be affected by unilateral markets or improper price interval settings. Adjust strategies according to market conditions. Users accept all terms and risks when using this tool on BYDFi.com. Users should recognize the risks of cryptocurrency investment and operate cautiously. All investment actions on BYDFi.com represent the user's true investment intentions, and they accept the potential risks and rewards of their investment decisions.