Perpetual Contract Multi-symbol Grid Strategy

FMZ quantitative trading platform use teaching

https://www.youtube.com/watch?v=hlkvrRqEHTE

Perpetual Contract Multi-symbol Grid Strategy Video Guide

https://www.youtube.com/watch?v=lw56O8aRpuw

The grid strategy introduction:

Trading on futures stable coin based perpetual contracts, you can go short without holding any spot value, and all trading and profit are count with stable coin. Therefore, compared with the spot grid strategy, the perpetual contract grid strategy is more convenient and simple, and of course it also increases the risk of liquidation.

The strategy needs to set two main parameters: grid trade value, grid pct. If the grid pct is set to 0.01 and the trading value is set to 500, then the strategy will short 500 USDT for very 1% increase in the price of the trading symbol, and the same will be done if the price falls. The grid strategy rely on volatility to make profits. If the price back to the initial price in the future, all grid profits will be realized. If there is an obvious independent market, such as a 100% increase in one day, the grid will produce obvious floating losses, and if the trading value is too large, there is a risk of liquidation. In addition, trading pairs need to be active to trade frequently and increase profits.

Risk:

1. The risk of liquidation in a big drop. the position amount will continue to increase and it is likely to be liquidated. However, if the leverage is lower than 1, the risk of liquidation will be controllable, and there is no risk of liquidation in the balance strategy w**hen the price go up.
2. API error, if the return of API access is delayed or the data is wrong, it will cause a strategy exception.
3. Funding fee loss, there is little risk in this respect. Generally, the fee will be positive when the price go up. If the funding fee is too high, you can close the position in advance.