A few days ago, I told you about a futures grid strategy. Today I will explain its practical side, how it generates profit and where losses are possible.
As I mentioned before, if you want to use a grid strategy, the first requirement is to have a Binance account. On Binance you can easily apply a futures grid strategy to cryptocurrencies, metals or other tradable assets.
As I explained earlier, silver has good volatility. Since it is a strong and valuable metal I believe it is more suitable for investment and trading. It is considered one of the safer assets after gold and its demand continues to increase over time. That is why my main focus is on silver and I recommend trading silver more than other assets.
As you can see in the screenshot the futures grid that I started yesterday is giving me a good profit ratio. I simply set a trading range between 52 and 62. My bot will continue trading automatically as long as the price stays within this range.
Based on this range, I opened both a long position and a short position on silver. I used 2x leverage because I consider it relatively safe and I allocated 500 USDT to each side of the trade.
The strategy works like this whenever the price of silver moves by around 0.2%, the bot executes a trade and books a small profit.
So far, within the first 24 hours the bot has completed around 250 trades and generated about $5 in profit. In my opinion this is a very good return based on the APR.
I have set both the upper and lower trading limits at about 8%. As long as the price remains within this range, the bot will continue generating profits.
The main risk comes if silver makes a strong one-sided move of more than 8%, either upward or downward and breaks out of my trading range. In that situation there is a chance of a temporary loss.
However, if the price continues moving within the selected range the bot will keep making trades, continue booking profits and generate a good APR over time.
As you can see in the screenshot, many grid orders are active and the bot is continuously trading.
Take a look and decide whether this strategy suits you. If you believe the potential rewards are worth the risks and you can manage that risk properly then I think this is a good way to keep your funds working continuously and generate a steady APR.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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