{"id":15702,"date":"2025-12-18T07:32:13","date_gmt":"2025-12-18T07:32:13","guid":{"rendered":"https:\/\/www.btse.com\/blog\/?p=15702"},"modified":"2025-12-18T07:32:13","modified_gmt":"2025-12-18T07:32:13","slug":"how-to-lock-in-profits-and-manage-risk-with-futures-grid-bots","status":"publish","type":"post","link":"https:\/\/www.btse.com\/blog\/how-to-lock-in-profits-and-manage-risk-with-futures-grid-bots\/","title":{"rendered":"How to Lock In Profits and Manage Risk with Futures Grid Bots"},"content":{"rendered":"

Grid trading is a strategy that sets up a series of buy and sell orders at predetermined price levels, below and above a price that you pick.\u00a0<\/span><\/p>\n

As the price moves up and down within your range, these orders are triggered, enabling you to profit from small price fluctuations.\u00a0<\/span><\/p>\n

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In this tutorial, we also implement a trailing stop condition that enables us to lock in profits in the event of a sudden market decline.<\/span><\/p>\n

The below example demonstrates what happens if we initiate a bot at a $100k Bitcoin price level that executes a trailing stop anytime profits fall below 5% of the initial investment.<\/span><\/p>\n

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Getting Started with Futures Grid Trading<\/b><\/h2>\n

First, we make sure there’s enough funds in our futures wallet. The available balance shows 6059 USDT, which provides more than enough cushion for a 1000 USDT initial investment.<\/span><\/p>\n

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We generally recommend at least a few thousand USDT, or several multiples of the intended initial investment\/margin, to help hedge against liquidation. Please follow the <\/span><\/span>tutorial here<\/span><\/a><\/span> for more info on how to move money to your futures wallet.\u00a0<\/span><\/span><\/p>\n

To get started, we go to <\/span><\/span>https:\/\/www.btse.com\/en<\/span><\/a><\/span> and go to the top left corner \u201cTrade\u201d and select \u201cFutures.\u201d<\/span><\/span><\/p>\n

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This time, we are using BTC-PERP, settled in USDT, as an example; on our platform, you can choose from over 100 different cryptocurrency futures to trade.\u00a0<\/span><\/p>\n

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Then, we go to the right side of the screen and select the Robot icon that is located at the top right side of the screen.\u00a0<\/span><\/p>\n

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We then land at the \u201cFutures Grid\u201d page, and need to fill out \u201cRange Settings,\u201d \u201cGrid Settings,\u201d and \u201cInvestment.\u201d<\/span><\/p>\n

This time, the current market price is 87,209, but we expect both a small dip in the short term and a longer rally in the 1-2 week time frame.\u00a0<\/span><\/p>\n

So we set our range settings at 95,000 for \u201cUpper Price\u201d and 85,000 for \u201cLower Price.\u201d\u00a0<\/span><\/p>\n

For the \u201cNo. of Grids\u201d, we pick 100, which means the bot will line up 50 buy and 50 sell orders within the range we designate above.\u00a0<\/span><\/p>\n

For the \u201cInvestment\u201d setting, we start with 1000 USDT as our initial margin, or investment.\u00a0<\/span><\/p>\n

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After pressing \u201cCreate (Long)\u201d, we get a confirmation prompt, and press Confirm.<\/span><\/p>\n

Now, we check the \u201cBot\u201d tab to see if we placed our order successfully.\u00a0<\/span><\/p>\n

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In short, the bot will place 100 trade orders between the $85-95k range, buying when the price dips and selling when it nears the top of the range.<\/span><\/p>\n

Next, we explain how setting a trailing stop order can help lock in profits in the event of a sudden market decline.<\/span><\/p>\n

What is a Trailing Stop?\u00a0<\/b><\/span><\/h3>\n

A trailing stop is a type of stop-loss order that automatically moves with the market price to lock in profits and limit losses. It helps traders to lock in winning positions and prevent big wins from turning into losses.\u00a0<\/span><\/p>\n

To add a trailing stop, press \u201cAdd\u201d under the \u201cTrailing Stop\u201d category of an existing grid bot.<\/span><\/p>\n

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After you press \u201cAdd,\u201d you will land on the page below.\u00a0<\/span><\/p>\n

We input $2,000 for \u201cDistance\u201d and $92,000 for \u201cActivation Price\u201d.<\/span><\/p>\n

In a non-grid trading scenario, we assume that Bitcoin will rally to $95,000, and want to lock in our gains if it drops by $2,000 or more.\u00a0<\/span><\/p>\n

The activation price refers to when the bot will start tracking the price.\u00a0<\/span><\/p>\n