1.What Is a Futures Grid Strategy?
A futures grid strategy is an automated trading strategy that profits from buying low and selling high within a predefined price range.
Users only need to set the upper and lower price limits and choose the number of grids. The system will automatically calculate the buy and sell prices for each grid, place orders accordingly, and execute trades as the market fluctuates—capturing profits from price movements without manual intervention.
2.Applicable Market Scenarios for Futures Grid Strategies
The core idea of a futures grid strategy is range trading (oscillation arbitrage). It is best suited for market conditions where prices are expected to fluctuate within a range for an extended period, rather than trending strongly in one direction.
3.How the Futures Grid Strategy Works
3.1 Grid Direction Modes
The futures grid strategy supports three modes: Long, Short, and Neutral.
Long Mode
- Uses the invested amount to place buy orders at each grid level to open long positions.
- Some orders may be filled immediately depending on the current market price.
- The strategy only holds long positions.
Short Mode
- Uses the invested amount to place sell orders at each grid level to open short positions.
- Some orders may be filled immediately depending on the current market price.
- The strategy only holds short positions.
Neutral Mode
- Places buy orders below the current market price.
- Places sell orders above the current market price.
- No position is held at launch; positions are opened only when the price reaches a grid level.
- The strategy may hold both long and short positions over time.
3.2 Grid Initialization Process
- Order Size per Grid Based on your investment amount and selected leverage, the system calculates the contract size for each grid.
- Order Placement After the order size is determined, the system places buy and/or sell orders according to the selected grid direction.
3.3 Grid Execution Logic
3.3.1 Long Grid Strategy
After initialization, the strategy places buy orders at each grid level within the selected price range.
- Order Execution & Replenishment When a buy order is filled (price reaches the grid level), the system automatically places a sell order at the next higher grid level.
- Continuous Cycle Buy low → Sell high, repeating automatically.
Example (BTCUSDT Perpetual Futures):
- Price range: 100,000 – 110,000 USDT
- Grid type: Arithmetic
- Number of grids: 10
- Leverage: 3×
- Current price: 105,800 USDT
- Investment currency: USDT
Initial buy orders: 100,000, 101,000, …, 109,000
- Order execution: Buy orders above the current price (e.g. 105,800) may be filled immediately.
- Sell order logic: When a buy order is filled (e.g. at 105,000), a sell order is automatically placed at the next higher grid price (106,000). Once both orders are filled, a complete grid profit is realized.
- Fully automated: This process continues automatically until the strategy is manually stopped.
3.3.2 Short Grid Strategy
The strategy places sell orders at each grid level within the price range.
- Order Execution & Replenishment When a sell order is filled, the system automatically places a buy order at the next lower grid level.
- Continuous Cycle Sell high → Buy low, repeating automatically.
Example (BTCUSDT Perpetual Futures):
- Price range: 100,000 – 110,000 USDT
- Grid type: Arithmetic
- Number of grids: 10
- Leverage: 3×
- Current price: 105,800 USDT
- Investment currency: USDT
Initial sell orders: 101,000, 102,000, …, 110,000
- Order execution: Sell orders below the current price may be filled immediately.
- Buy order logic: When a sell order is filled (e.g. at 106,000), a buy order is automatically placed at the next lower grid price (105,000).
- Fully automated: The strategy continuously runs until manually stopped.
3.3.3 Neutral Grid Strategy
Unlike long or short modes, the neutral strategy aims to profit from both upward and downward price movements.
Order placement:
- Buy orders below the current market price
- Sell orders above the current market price
Execution logic:
- Buy order filled → Place a sell order at the next higher grid
- Sell order filled → Place a buy order at the next lower grid
Example (BTCUSDT Perpetual Futures):
- Price range: 100,000 – 110,000 USDT
- Grid type: Arithmetic
- Number of grids: 10
- Leverage: 3×
- Current price: 105,800 USDT
- Investment currency: USDT
Initial orders:
- Buy orders at: 100,000, 101,000, 102,000, 103,000, 104,000, 105,000
- Sell orders at: 107,000, 108,000, 109,000, 110,000
Why is there no sell order at 106,000? If a sell order were placed at 106,000, it would create overlapping long and short grid cycles within the same price interval, causing operational conflicts. To keep the strategy logic clear and consistent, only the closest sell order above the current price is retained.
- Order execution: Orders are triggered as the market price moves.
- Reverse order placement: After a buy at 105,000, a sell order is placed at 106,000. After a sell at 107,000, a buy order is placed at 106,000.
- Continuous automation: This process repeats automatically throughout the strategy’s runtime.
4.How to Create a Futures Grid
Using BTCUSDT Perpetual Futures as an example:
On Web
- Go to the HashKey homepage and click Strategy Trading → Futures Grid.
- Enter the grid creation page and select BTCUSDT Perpetual Futures.
On App
- On the Futures Trading page, tap Futures Grid.
- Enter the grid creation page and select BTCUSDT Perpetual Futures.
Once on the creation page, set up the strategy based on your market view and preferences:
- Choose the grid direction (Long / Short / Neutral)
- Set the price range for market fluctuations
- Select the number of grids
- Enter the investment amount
After completing these settings, you can create and launch the strategy.
How to Stop a Futures Grid
To stop a running futures grid strategy:
- Go to Strategy Trading → Futures Grid
- Select the active grid strategy
- Click Stop to terminate the strategy
From the same page, you can also:
- Set Take Profit / Stop Loss levels
- Click Add Margin to adjust the margin allocated to the grid strategy
These actions allow you to manage risk and fine-tune margin exposure without changing the grid structure.
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