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Binance Futures Grid Trading AI Parameters Guide

2022-01-19 02:25

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Grid trading is a strategic tool to automate buy and sell orders at preset intervals and preset price ranges in Binance Futures. The feature is designed to help users make profits on small price fluctuations as it performs best in volatile and sideways markets.

Traders can customize and set grid parameters on their own to define a range to profit from price volatility.

We acknowledge that not so many users know how to set parameters to build their own grid trading strategy. For this reason, we recommend AI-based parameters to help improve user experience and reduce the learning curve. These include lower price limit, upper price limit, and grid count.

With the AI function, anyone is able to create a grid trading strategy with just one click.

How to use grid trading AI-based parameters?

1. Go to [Futures] and click [Trading Bots] - [Futures Grid].

2. Go to the [AI] tab on the right to check the recommended parameters and enter your investment amount.

3. Once you've decided the amount of margin that you want to allocate to your grid trading strategy, click [Create], and confirm your grid order so the system automatically places buy or sell orders at the preset prices. Please note that the AI-based parameters are set in a Neutral direction and in Arithmetic Mode by default.

In addition, please note that the AI-based parameters function won’t work when there isn’t enough trading history on a given asset. Under such circumstances, you’ll have to set the parameters manually as explained here or click [Copy parameters to Manual settings] to modify the lower price, upper price, and grid number.

How are the AI-based parameters calculated?

Click to view details of each step below:

Step 1: Calculate Upper & Lower Price

Use 1D interval Kline data

  • Upper Band = MA + bbm * Standard Deviation
  • Lower Band = MA - bbm * Standard Deviation

*Learn more about bbm.

Note:

  • bbm is set to 3.
  • MA and Standard Deviation periods selection are:
    • For 7 days: use 1 day candlesticks for the past 7 periods;
    • For 30 days: use 1 day candlesticks for the past 30 periods;
    • For 180 days: use 1 day candlesticks for the past 180 periods.
Step 2: According to whether Upper or Lower Band is in the reasonable range, calculate the final grid upper limit, grid lower limit.
  • If min range
    Else grid upper limit = average price * (1 + default range)
  • If min_range
    Else grid lower limit = average price * (1 - default range)

Note:

  • min range = 1% * power(n, 1/3)
    • For 7 days: min range =1% * power(7, 1/3)
    • For 30 days: min range =1% * power(30, 1/3)
    • For 180 days: min range =1% * power(180, 1/3)
  • max range = 15% * power(n, 1/3)
    • For 7 days: min range =15% * power(7, 1/3)
    • For 30 days: min range =15% * power(30, 1/3)
    • For 180 days: min range =15% * power(180, 1/3)
  • default range = 5% * power(n, 1/3)
    • For 7 days: min range =5% * power(7, 1/3)
    • For 30 days: min range =5% * power(30, 1/3)
    • For 180 days: min range =5% * power(180, 1/3)
  • average price= (Open+Close+High+Low)/4
    • Using 1 hour interval Kline
  • DR = (average price - MA) / MA
    • MA is calculated in Step 1

Grid Number

Grid Number = (1 + buffer) * (grid_upper_limit - grid_lower_limit) / ATR

Notes:

  • Buffer is currently set to 30%;
  • ATR period selection:
    • For 7 days: use 30-minute candlesticks for the past 168 periods;
    • For 30 days: use 1-hour candlesticks for the past 360 periods;
    • For 180 days: use 2-hour candlesticks for the past 1080 periods;

For more details, please refer to the Academy article What Is Average True Range?

Risk Warning: Grid trading as a strategic trading tool should not be regarded as financial or investment advice from Binance. Grid trading is used at your discretion and at your own risk. Binance will not be liable to you for any loss that might arise from your use of the feature. It is recommended that you should read and fully understand the Grid Trading Tutorial and make risk control and rational trading within your financial ability. For a complete strategy trading disclaimer, please refer to here.

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