Hello everyone. How are you doing, and how is your life going? I hope you are all well and having a good time with your loved ones. In this post, I'll go over future grid trading and how you can take both long and short positions. Every trader and investor is looking for the best way to generate passive income with minimal effort. Yes, this grid trade is very simple to execute, and you can earn easy passive income, but you must first understand how it works and where to close your positions.
DIFFERENT STRATEGIES YOU CAN APPLY IN YOUR TRADES
There are many strategies to apply in future grid trade, the good thing about the grid trade is that you can enable neutral option which means you only set range and within this range both long and short positions are taken automatically. What are the different strategies you can apply in future grid trade, If you are a long term investor and can HODL then its better to execture Spot grid trade and just set the range according to support and resistance for long term where you will daily get passive income. For each grid your realized profit is calculated which depends on your amount of investment and the volatality of coin .
The other strategy is for mid-term investors to set their range in future grid trade and check for weekly support and resistance. Assume the weekly support is 17K and the resistance is 24K, and you set your range between these numbers to earn passive income on a consistent basis. The other strategy is for the short term, where it is better to use the Bollinger Band indicator to check the support and resistance levels on a daily basis. When the price falls below the Bollinger band, you set your lower range from there, and when it reaches the upper level, you close your grid trade and wait for the next opportunity.
How Neutral Future Grid Trade is profitable?
Before discussing the profitability of neutral grid trade, it is necessary to define neutral in the Future grid trade. The taking of both long and short positions in your trade is known as a neutral grid trade. Assume you've set your range to 18k to 22k, which means your lower range is 18k and your upper range is 22k. The changing point of the positions is at the midpoint of your range, which is $20,000. When the value is lower than the midpoint, the bot will trade for long positions; when the value rises above the midpoint, the bot will automatically change the position to short. That is, you will profit on both ranges and thus have a neutral future grid trade.
At all times, the bot will buy and sell for you, and your realised profits will be consistent. You can also set it to any of the positions, for example, if you believe the market is bullish, simply set your range and take it only to the long position, while your short position is disabled. Similarly, if you believe the market will fall, you set your short position range and disable your long position. However, if you notice that the market is trending in the wrong direction, you should switch to a neutral position, which will take both positions and earn you regular passive income.
THE ONLY DRAWBACK
This strategy works better for people who have more money and can set their range from very low to very high. If you have $10,000 USDT, it is best to set your range from $6,000 to $80,000 so that the bot can continuously execute your both positions and generate a passive income for you. This is one of the most successful strategies on Binance, and it is very simple to implement. This strategy can generate a sizable passive income with minimal effort. The only disadvantage of this strategy is that once you are out of range, the bot will stop trading until the price returns to the range.
This is one of the simplest ways to make money and one of the best Binance features. I have a lot of experience with Grid trading and have closed every time with profits. I've shared my knowledge of Neutral Future Grid Trade with you, and I hope you found the post informative and helpful. If you find the post useful, please reblog it so that it reaches as many people as possible and that they can benefit the most. Also, remember to upvote, which will help me financially and grow my account. Please feel free to ask any question, and I will do my best to answer it.
- PICTURES ARE TAKEN FROM CANVA AND EDITED IN CANVA.
DISCLAIMER
Please keep in mind that I am not a financial advisor. Never, ever take anything I say as financial advice. Conduct your own research. Before making any investment decisions, consult with a professional investment advisor! My posts are strictly for entertainment purposes!!
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