How to make money on falling cryptocurrencies using a futures grid bot

The main advantage of futures trading is that if the market has volatility, the futures trader has the opportunity to make money. This allows traders to profit from both the rise and fall of cryptocurrencies. In addition, futures have the following advantages:

- Low commissions: Trading futures involves lower commissions compared to trading on the spot market.

- Smaller spreads and high activity: Futures markets typically have tighter spreads and high trading activity.

- Capital efficiency: The ability to use leverage allows you to make capital more efficient.

- Wide order functionality: Traders can use a wider range of orders for trading.

- High trading volumes: High trading volumes and high liquidity are concentrated specifically in the futures markets.

- Leverage: The ability to use leverage allows you to increase your profit potential.

Futures traders often receive rewards from crypto exchanges as part of promotional campaigns. Crypto exchanges are interested in increasing trading volume and activity, so they incentivize users by organizing tournaments, competitions and promotional campaigns with a prize fund for futures traders. The main requirement for receiving a reward is the achievement of a certain trading volume, and not necessarily a high profitability.

For example, one of the largest crypto exchanges in the world, OKX, regularly holds competitions and promotional campaigns for futures traders with prizes, such as the “Smart Trading Super League” with a prize pool of up to 150,000 USDT.

To make dealing with futures easier, traders often use trading bots. These specialized programs execute trades according to a specific strategy. While bots cannot completely replace a human trader, they can help free up time and allow for uninterrupted trading, even while on vacation or vacation. It is important to carefully configure the bot in accordance with your personal strategy and risk level.

A futures grid bot is an automated strategy that allows you to trade futures contracts within a predefined range at a preset interval. The bot buys low and sells high, ensuring profitability in a volatile market.

To configure a grid bot to go long or short, you need to specify:

1. Lower and upper limits of the price range: The trading bot will work within these limits.

2. Number of grids and construction mode: Grids can be arithmetic or geometric.

3. Leverage size and amount of funds: It is better to choose a small leverage, for example, 3x, to minimize the risk of forced liquidation.

When setting up a grid bot for the BTC/USDT pair, you can set the lower limit of the grid range at $50,000 and the upper limit at $70,000. The average price will be $60,000. Below this price the bot will buy, and above this price it will sell.

Some exchanges offer advanced settings for futures grid bots. For example, the following functions are available on OKX:

- Conditions for starting and ending the bot: You can set trigger values, such as price, RSI indicator or signals from TradingView.

- Actions with cryptocurrency when the bot is stopped: You can choose whether to leave the cryptocurrency in the account or sell it.

- Classic take profit and stop loss orders: Prices can be specified both in absolute numbers and as percentages.

- Advanced setup using artificial intelligence: The system will automatically determine the optimal settings for the grid bot and launch it.

Although futures are considered a high-risk instrument, when used with caution and moderation, their use can significantly improve trading efficiency. Futures help you make the most of your trading deposit. The main thing is to control your risks and carefully set up trading strategies.

This article does not encourage investment and is for educational purposes only.