FAQ

An Introduction to Futures Strategy Trading for Beginners
Published on: 2024/10/22 08:04Last Update: 2025/09/26 10:06

1. How to Choose Your Strategy Based on Market Conditions:

   - Sideways Market/Range Trading - Futures Grid Strategy

   - Mid-to-Long-Term Sideways Market/Incremental Entry - Futures Martingale Strategy

   - Indicator Trading - Futures CTA Strategy

 

2. Choose Your Mode:

  •    Bot Trading Mode

We will select the most optimal strategy parameters based on backtested results You only need to set the leverage and the margin amount to invest.

  •    Manual Trading Mode

You can set parameters such as the highest and lowest price in the range, grid type and number, leverage, and margin amount. For beginners, the bot trading mode is recommended. Do note that annualized backtested returns, single grid profit rates, and other data are based on historical data and do not guarantee future earnings.

 

3. How to Determine the Grid Price Range

To maximize your grid returns, the key is to ensure that your "net" captures as many "fish" as possible. Therefore, determining a reasonable price range becomes crucial. For example, day traders can determine the price range using "highest price in range = daily resistance level” and “lowest price in range = daily support level." This is a relatively simple method for defining a price range, among others. If the current price deviates from the set price range, you can manually terminate the strategy. After setting a new price range, restart the strategy to ensure it can execute trades and generate profits.

 

4. How to Set the Number of Grids

When the price range is fixed, a larger number of grids will result in lower profit per grid, higher trading frequency, and increased transaction costs; conversely, a smaller number of grids will increase profit per grid, decrease trading frequency, and reduce transaction costs. Therefore, determining a reasonable number of grids is also very important.

 

5. How to Follow Strategies

CoinW offers a strategy-following feature that allows users to replicate and deploy different strategies easily. When following a strategy, you will only need to set leverage and the margin amount to invest, and your strategy will make profit for you. For beginners, we recommend choosing a strategy based on the highest APR, profit, and number of followers in the strategy hall. 

 

6. How to Track Your Strategy Trading Status

In the strategy hall, click "My Strategies" to view pending and ongoing strategy trades. Click "Historical Strategies" to view past strategy trades. Click "Terminate" to stop the strategy operation. We recommend that all users set stop-loss prices to control risk. Users should stay informed about market trends and information to make corresponding adjustments to their grids.

 

Disclaimer

Futures trading strategies are trading tools and should not be considered financial or investment advice provided by CoinW. Futures strategy trading profits may be affected by extreme market conditions or less-than-ideal parameters. Please conduct thorough research and adjust your futures trading strategy while employing robust risk mitigation measures.

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An Introduction to Futures Strategy Trading for Beginners
Published on: 2024/10/22 08:04Last Update: 2025/09/26 10:06

1. How to Choose Your Strategy Based on Market Conditions:

   - Sideways Market/Range Trading - Futures Grid Strategy

   - Mid-to-Long-Term Sideways Market/Incremental Entry - Futures Martingale Strategy

   - Indicator Trading - Futures CTA Strategy

 

2. Choose Your Mode:

  •    Bot Trading Mode

We will select the most optimal strategy parameters based on backtested results You only need to set the leverage and the margin amount to invest.

  •    Manual Trading Mode

You can set parameters such as the highest and lowest price in the range, grid type and number, leverage, and margin amount. For beginners, the bot trading mode is recommended. Do note that annualized backtested returns, single grid profit rates, and other data are based on historical data and do not guarantee future earnings.

 

3. How to Determine the Grid Price Range

To maximize your grid returns, the key is to ensure that your "net" captures as many "fish" as possible. Therefore, determining a reasonable price range becomes crucial. For example, day traders can determine the price range using "highest price in range = daily resistance level” and “lowest price in range = daily support level." This is a relatively simple method for defining a price range, among others. If the current price deviates from the set price range, you can manually terminate the strategy. After setting a new price range, restart the strategy to ensure it can execute trades and generate profits.

 

4. How to Set the Number of Grids

When the price range is fixed, a larger number of grids will result in lower profit per grid, higher trading frequency, and increased transaction costs; conversely, a smaller number of grids will increase profit per grid, decrease trading frequency, and reduce transaction costs. Therefore, determining a reasonable number of grids is also very important.

 

5. How to Follow Strategies

CoinW offers a strategy-following feature that allows users to replicate and deploy different strategies easily. When following a strategy, you will only need to set leverage and the margin amount to invest, and your strategy will make profit for you. For beginners, we recommend choosing a strategy based on the highest APR, profit, and number of followers in the strategy hall. 

 

6. How to Track Your Strategy Trading Status

In the strategy hall, click "My Strategies" to view pending and ongoing strategy trades. Click "Historical Strategies" to view past strategy trades. Click "Terminate" to stop the strategy operation. We recommend that all users set stop-loss prices to control risk. Users should stay informed about market trends and information to make corresponding adjustments to their grids.

 

Disclaimer

Futures trading strategies are trading tools and should not be considered financial or investment advice provided by CoinW. Futures strategy trading profits may be affected by extreme market conditions or less-than-ideal parameters. Please conduct thorough research and adjust your futures trading strategy while employing robust risk mitigation measures.

Was this article helpful?
9 out of 9 found this helpful
Limited-Time New User Offer!
Sign up now to claim your exclusive 12000 USDT gift pack!
Already have an account?Log In
Popular Articles