Poloniex is excited to announce the launch of futures grid trading bot! With the new strategic trading tool, you can deploy the grid bot on a wide range of futures perpetual contracts and build neutral, long, or short grid strategies within a configured price range based on market changes. This trading strategy allows you to profit from price movements in volatile or sideways markets.
A sideways market occurs when the price of a crypto fluctuates within a horizontal range for an extended period of time without trending one way or the other. Most people tend to take conservative investment strategies under such market conditions, and grid trading can be an ideal tool to capitalize on market volatility.
Poloniex will continue improving its perpetual futures product and other services to offer users a finer trading experience. We are happy to help you with any questions you might have. Please visit our Help Center or contact our Customer Support for help.
[FAQ]
1. What is the futures grid trading bot?
Grid trading is a strategic trading tool that automates the buying or selling of futures contracts at preset intervals around a pre-determined price range. Grid bots can automatically buy low and sell high to maximize profits for you in a choppy market.
2. What is the best time to deploy the futures grid trading bot?
The futures grid trading bot performs best in volatile and sideways markets when prices fluctuate in a given range.
3. How does Poloniex futures grid trading work?
You can customize and set grid parameters to determine the grid's upper and lower prices and the number of grids. Once the grid is created, the system automatically buys or sells orders at preset prices.
For example, you expect Bitcoin to hover in a price range between 50,000 USDT and 60,000 USDT in the next 24 hours. Then you can set up grid trading parameters to trade BTC perpetual contracts within an expected price range to make profits on the price changes. Grid trading performs best in volatile and sideways markets when prices fluctuate in a given range. The more grids you include, the greater the frequency of trades will be. However, it comes with an expense as the profit you make from each order is lower.
4. Does Poloniex charge fees for futures grid trading?
The fee structure of futures grid trading is the same as that of regular futures trades. No extra charge will be applied.
5. How can I use Poloniex's futures grid trading bot?
You may refer to Grid Trading Bot FAQ or the articles below for more information:
- Poloniex Futures Grid Trading Explained
- Grid Trading Example
- Smart Customization of Futures Grid Trading
Poloniex Team
January 5, 2023
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