As a crypto trader, you're always looking for an edge. The world of crypto trading can be exciting, but you may find it challenging to stay ahead of the curve.
Enter the KuCoin Futures Grid Bot, a game-changing tool designed to automate your trading and optimize your returns. This powerful trading bot harnesses the volatility of the crypto futures market, executing trades on your behalf and freeing you from the need to constantly monitor the rising and falling markets.
Whether you're a seasoned trader or a newcomer to the crypto world, this article will guide you through the ins and outs of the KuCoin Futures Grid Bot, helping you unlock a new level of trading efficiency and profitability.
A Brief Look at Grid Trading
Grid trading involves strategically placing buy and sell orders at predetermined price intervals, allowing you to set upper and lower price bounds for your trades. This automated approach empowers you with control over your trade price range.
Unlike traditional strategies that have set rules for when to buy an asset, grid traders can make money by figuring out when there's peak demand and using grid trading to enter and exit positions. Hence, they know which side has an advantage over others who want it most.
What Is Futures Grid Bot?
The Futures Grid Bot automates buy and sell orders within two price points, allowing you to profit from both uptrends and downtrends while leveraging your positions to boost earnings.
The spread of buy and sell orders forms the grid, and because it operates in the derivatives market rather than focusing solely on the current token price, it's called Futures Grid.
KuCoin offers various ways to run the bot:
Auto: The AI system determines all the preset parameters.
Copy trading: Follow and replicate the settings of profitable users.
Customized trading: Set your own preferred parameters based on your own market research.
KuCoin Futures Grid Bot vs. Spot Grid Bot
The KuCoin Futures Grid trading bot works similarly to the Spot Grid Bot. They both help you earn passively through grid trading, but several factors differentiate them:
Go Long or Short with KuCoin Futures Bot
The first advantage of the Futures Grid bot is that you can take advantage of the market volatility irrespective of the direction it moves. You can either long or short a token on KuCoin Futures. If you think a token's price will go down, the KuCoin Futures bot will help you maximize your returns from the market sideways.
Support 10x Leverage on KuCoin Futures Grid Bot
The other advantage of the Futures Grid bot is the presence of leverage. Our bot currently supports leverage of up to 10 times your investment. You can amplify your returns by a multiple of 10. While this is a fantastic way to increase your capital, you should remember that higher returns equate to higher risks.
How do you know whether to use the Futures Grid and Spot Grid trading bot?
If you want to amplify your gains with leverage or profit from both upswings and downswings, the Futures Grid trading bot is for you. If you believe the market is bullish and want to stay away from leverage, the Spot Grid trading bot might be the one for you.
Learn more about the Spot Grid trading bot to make passive income in the crypto spot market.
Pro tip: Exercise caution during increased volatility to avoid the risk of being liquidated. Use high leverage only when the market is decisive in moving in one direction (up or down). Use the advanced settings of stop-loss and take-profit orders to control your positions properly.
KuCoin Futures Grid Bot vs. Futures Trading: Which Is Better?
The key benefits of the bot over manual futures trading are:
Higher number of entry and exit points: The Futures Grid Bot, an automated high-frequency trading strategy, provides more trading opportunities than a human trader could manage.
Reduced risk: The bot's grid strategy lowers the cost basis of positions, reducing potential losses and pushing the liquidation price further away.
Emotion-free trading: Manual trading is often influenced by emotions and biases. The bot lets you set your strategy without your emotions getting in the way.
Creating Your First Futures Grid Bot On KuCoin
Step 1: Select the Futures Grid Bot
The first step is to log in to your account with your registered email ID or mobile number. Once logged in, click the Trading Bot button on the app's home screen. From there, select the Futures Grid trading bot.
Futures Grid Bot Selection Process
Step 2: Explore the Futures Grid Bot Interface
Once you have entered the Futures Grid bot interface, you will be able to see the number of people using the Futures Grid trading bot strategy and the highest APR earned by a bot on a given day.
If you want more information on how the bot runs, you can watch a quick video on how to get started with the Futures Grid bot.
Scrolling down will lead to the list of top users with the highest APR that day. The APR number implies that the bot has made that much return on that day.
Click the Daily Ranking or the 7-day Ranking tab depending on what you want to see. KuCoin offers the option to copy profitable users’ settings and apply them to your Futures Grid in a single click. If you are a novice crypto trader, this might be your option. However, while copying other traders might be profitable, copy trading carries the inherent risk that the copied strategy might fail due to market swings, potentially leading to financial losses.
Exploring the Futures Grid Bot Interface
To get started, click Next at the screen’s bottom.
Step 3: Selecting a Futures Grid Bot Mode
If you decided not to copy other traders’ bot settings and instead want to set up your own bot, KuCoin offers two distinct options:
Selecting a Futures Grid Bot Mode
Let’s explore all the modes to check which mode is fit for you.
Auto Futures Grid Bot
Auto Futures Grid trading bot is a mode that lets AI determine the leverage, price range, and number of placed orders — all you need to do is determine the investment amount (margin) and the direction of the bot. All the pre-configured parameters are backtested and suited for novice beginners.
You can start an Auto Futures Grid bot in the following manner:
Select the crypto pair you want the bot to trade.
Check the details determined by the bot.
Determine whether you want the bot to trade long or short positions.
Enter the investment amount you want your bot to trade with and click Create to start the bot.
Custom Futures Grid Bot
If you want to create your own Futures Grid trading bot strategy — KuCoin has you covered! Once you select the Custom Futures Grid trading bot mode, you can determine your own parameters based on your price analysis.
To start your Custom Futures Grid trading bot, do the following:
Select your trading pair.
Set your price range — your bot will trade in this range.
Set your leverage - this is your gain and loss multiplier. It is automatically set to 2x for long bot strategies and 1x for short bot strategies.
Set the number of grids — as discussed in the earlier sections, the number of orders placed is the number of grids you want the bot to place on the price chart. The higher the number of grids, the higher the number of orders the bot places, and vice versa.
Enter the investment amount you want your bot to trade with and click Create to start the bot.
To use the trading bot, you must transfer funds from the Main Account to the Trading Account. You can directly transfer funds by clicking the swap button. As always, transfers between your accounts come at no cost to you.
Intra-Account Fund Transfer
The total investment represents the funds you want to put in the grid trading bot. The bot will take the funds from your KuCoin trading account, and once the bot completes trading, it will transfer all your funds back to your spot account.
You can click Advanced Settings to set up a specified Entry Price to start the bot. Once done, the bot will only work after the asset reaches this entry price.
Similarly, you can set up Stop-Loss and Take-Profit levels. Setting a Stop-Loss can ensure that the crypto price doesn’t unexpectedly move out of the grid range, leaving you with substantial losses.
Step 4: Starting Your Futures Grid Trading Bot
Now that you’ve selected the bot you want to create, it’s time to start it. After implementing the parameters, clicking the Create button will lead you to the order confirmation pop-up window.
This is the final check before starting your Futures Grid bot strategy. After clicking Confirm, the bot will officially begin running. You can always check your bot’s performance regarding the number of trades and profits by clicking on the Running tab at the bottom of the screen.
Running Bot: Overview
Alternatively, to copy another trader’s bot parameters, head to the daily or 7-day profit rankings and click on the trader you’d like to follow. This will open up the Order Details tab, where you can create the bot with their parameters.
Following Other Traders’ Strategies
Monitoring and Making Changes to The Futures Grid Bot
You can review your bot's performance and increase your investments by clicking the Increase Investment button. The Parameters section clearly explains all the details about your asset class and bot performance.
Running Bot: Overview
Click Details to check your Open Orders, Order History, and previously-set Parameters.
Open Futures Grid Trading Bot Details Tab
Stopping the Futures Grid Bot
If you want to lock in your profits or are forced to cut your losses from a losing trade, click the Turn Off sign in the top-right corner.
Stopping The Spot Grid Bot
Note that some trading pairs will offer different options to stop the bot, while others may only offer one option (like in this case).
Grid Trading Bot: Pro Version
If you are an advanced trader and want an even more in-depth visual overview of your trading bot, KuCoin has something for you. You can use the KuCoin Trading Bot Pro version on PC to view all your grids through a TradingView chart.
Futures Grid Trading Bot — Pro Version (Web)
Top Tips for Using the Futures Grid Trading Bot Strategy
These tips could help you maximize profits and minimize risks when trading with the KuCoin Futures Grid Bot:
Set Up Proper Leverage
Leverage amplifies your trading position, allowing you to potentially earn higher profits. However, it also increases the risk of liquidation if the market moves against your position. Therefore, it's crucial to set up proper leverage that aligns with your risk tolerance and market volatility.
Establish a Solid Trading Plan
A well-defined trading strategy is essential when using the Futures Grid Trading Bot. This includes setting your upper and lower price limits, profit per grid, and total investment. Your plan should also consider market trends and volatility.
Select a Trading pair That Matches Your Risk Tolerance
Low-risk traders should opt for high-cap coins like BTC or ETH due to their smaller price fluctuations. High-risk traders might prefer small-cap coins with wider price fluctuations. Always consider trading volume and market liquidity to avoid price slippage.
Set Take-profit and Stop-loss levels Wisely
These settings allow automatic buying and selling of positions at predetermined prices, crucial in grid trading to control losses.
Leverage Market Sentiment
Don't just focus on price charts; keep up with industry news to understand the market sentiment and trends. Significant news about leading coins, regulatory changes, or other developments can impact the market, requiring adjustments to your bot settings.
Monitor and Adjust Your Bot’s Settings Regularly
While the bot automates trading, it's important to regularly monitor its performance and adjust settings as needed. Market conditions can change rapidly, and your bot should adapt to maximize profits and minimize losses.
With over 2.4 million bots running, KuCoin’s Futures Grid trading bot is one of the most popular automated trading strategies for a reason. It is flexible, customizable, and allows you to trade the crypto futures markets 24/7.
We hope you found this guide helpful and informative. If you need additional help, please visit the KuCoin help center or contact our support team using the live chat feature at the bottom of the home page. Keep reading our guides to learn more about KuCoin products, trading & investing, or crypto & blockchain in general.