3 Shares of Profit via Futures Grid 1x to Short in the Fallback Market

2021/06/24 10:34:42

There is an experience that every user in the cryptocurrency world will feel the same; that is, the market will always bring you a different "heartbeat" persistently. In the bull market, users who hold crypto assets enjoy the thrill of investment growth. In the bear market, users who short also experience an increase in the number and value of crypto assets brought by the price drop. And in the same relatively common period of market fallback and turbulence, what kind of trading strategy choice is most worthy for users to explore? In this blog post, we will use the simplest and easy-to-understand expression and thorough comparison to bring you the advantages of choosing a trading strategy on Futures grid 1x to short.

Before starting our reading topic, here’s a quick introduction to help you better understand KuCoin Trading Bot: Trading Bot 101: What is KuCoin Trading Bot and How Does it Work?

In order to enrich KuCoin users' experience of the trading bot, KuCoin now provides Futures Grid and Classic Grid to meet the needs of different trading bot users. So, in the more common market fallback period, how should users choose a suitable Grid?

Futures Grid 1x to Short vs Classic Grid

Let us examine the differences between them through a few comparisons.

1. The current market is in a fallback phase, and so shorting is more in line with the current market trend. By going short, more floating profit can be earned.  

2. Compared with the Spot market, the depth of the Futures market is slightly weaker, but the fluctuation is relatively greater, which leads to a higher probability of triggering grids arbitrage.  

3. The Futures Grid also has higher possibilities of earning funding fees. Most of the time, the funding fees are obtained by those who are going short.  

In addition to some theoretical comparisons, let us use an example to compare the different results of the two grids with the same capital allocation and the same trading pair to help you sort out the differences between them more clearly.

For example:  

We run a MATIC/USDT Classic Grid bot with a 770 USDT amount and a Futures Grid bot that shorts 1x of the MATIC/USDT pair with an investment amount of 770 USDT.  Parameters for the price range and the number of grids are the same for the two bots.  

For the same amount of investment, the grid profit of the Futures Grid is significantly greater than the Classic Grid.  


1. In order to increase the utilization rate of funds, the above operations can also be shortened by 2 times or more, which greatly improves the utilization rate of funds. But remember that it will increase the risk of liquidation. Please stay cautious when doing such operations.  

2. It is recommended that users run a bot for a longer period of time to maximize their profit. 

Closing Thoughts

For users who want to earn more profit and are more cautious in the period of market fallback and turbulence, Classic Grid and Futures Grid 1x to short are good choices. Under the proper operation, the 1x short may bring greater return possibilities: the right direction of shorting is in line with the trend of a market downturn; when the Futures depth is slightly weak, the relatively large fluctuation is more likely to touch the possibility of grid return; and the possibility of earning a higher funding fee.

In order to improve the utilization rate of funds, the Futures grid of the above operation can adopt 2X leverage or higher. But it should be noted that the corresponding risk of liquidation will increase. Please use it cautiously. If you want to maximize your profit, you can also choose to run the bot for a long time to receive the arbitrage benefits of every fluctuation in the market.

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The above content is for investment strategy sharing and reference, and the purpose is to make users better understand the relevant knowledge of the KuCoin Futures grid. This blog is not investment advice. Please think and judge rationally and arrange your trading strategy reasonably.

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