What is neutral future grid bot and how it works and, is it beneficial or not?
A neutral futures grid bot is an automated trading strategy designed to capitalize on price fluctuations within a specific price range in the futures market. Unlike long or short grid bots, it doesn't take an initial directional position (long or short) on the asset.
Here's how it works:
You define a price range for the bot to operate within.
The bot places buy orders at regular intervals below the current market price and sell orders at intervals above it.
If the price goes down, the bot buys at a lower price, potentially profiting when the price bounces back up and it sells.
Conversely, if the price goes up, the bot sells at a higher price, aiming to profit when the price dips back down and it buys again.
the bot capture profits from price swings within the defined range, regardless of the overall upward or downward trend.
Here are some key points about grid bot:
Suited for: They are best suited for range-bound markets, where the price is expected to fluctuate within a specific range for an extended period.
Advantages:
Potential for profits from price volatility.
Requires less directional prediction compared to long/short grid bots.
May offer better risk management by not taking a large initial position.
Disadvantages:
Requires careful setup of the price range to capture enough price swings without venturing outside the range.
Can generate a lot of trading activity, leading to fees.
Futures trading itself is risky.
My personal review: it's best and better you don't have to worry about liquidation and it is best for a steady profit without worrying about placing orders