Futures grid trading is an automated trading strategy designed based on price fluctuations. By placing orders in batches within a preset price range, the system automatically buys low and sells high or sells high and buys low, helping users capture price spread profits in a volatile market without the need for continuous monitoring.
In AlphaX, futures grid trading is mainly applied to perpetual futures trading. It supports long, short, and neutral strategies, suitable for different market conditions and trading preferences.
1. What is futures grid trading
Futures grid trading is a typical quantitative trading strategy. Its core logic is to divide multiple "grids" within a defined price range and deploy buy and sell orders at each price level in advance.
When the market price fluctuates up and down within the range, the system automatically completes the cycle of buying low and selling high. Each pullback and rebound in price creates an arbitrage opportunity.
This strategy is more suitable for volatility. In markets without a clear trend, it accumulates profits through frequent small price movements.
2. How to create a futures grid strategy on AlphaX
AlphaX offers two methods:
Method 1: AI strategies
1. After logging into your AlphaX account, go to the top navigation bar and click "Bots" > "Futures grid". From there, you can view the current featured AI strategies and create a strategy.
2. Click "AI picks", and choose a preferred futures grid strategy based on parameters such as long/short direction, 7d backtested APR, ROI per grid, and recommended investment cycle, then click "Use" > "Create strategy".
Method 2: Manual strategy creation
1. Select "Customize" to enter the parameter configuration page. Choose to set up a long, short, or neutral strategy.
2. Set the "Price range". Enter the "Lowest price", “Highest price", and "No. of grids".
You can also choose the grid mode:
- Arithmetic: Each grid has the same price interval.
- Geometric: Each grid changes by a fixed ratio.
3. Enter the "Margin" and "Leverage", then you can view the total investment amount and the estimated liquidation price.
4. (Optional) Click "Advanced settings" to set the "Trigger price" and "Take profit/Stop loss price".
Take profit (TP): When the market price reaches your take profit price, the bot will automatically close the position to lock in profits.
Stop loss (SL): When the market price reaches your stop loss price, the bot will automatically close the position to limit losses.
5. After confirming all parameters are correct, click "Create strategy" to run the bot. The system will automatically execute trades within the configured price range.
6. After the strategy is launched, you can view real-time key performance data on the "Running" page, including total PnL, ROI, grid profit, unmatched PnL, estimated liquidation price, arbitrage count, and status.
3. Futures grid profit and loss calculation example (BTC)
3.1 Basic parameters
- Pair: BTCUSDT
- Grid strategy: Long
- Initial open price: 74,000 USDT
- Grid highest price: 80,000 USDT
- Grid lowest price: 70,000 USDT
- No. of grids: 5
- Grid type: Arithmetic
- Leverage: 2x
- Margin per grid: 1,000 USDT
3.2 Price interval
Price interval = (80,000 − 70,000) ÷ 5 = 2,000 USDT
3.3 Grid order structure (long strategy)
A long grid only places buy orders at lower levels and close positions at higher levels:
| Grid | Buy price (long) | Sell price (take profit) | Margin per grid | Notional position | BTC amount | Profit per grid |
| G1 | 70,000 | 72,000 | 1,000 | 2,000 | 0.0286 | 57.2 |
| G2 | 72,000 | 74,000 | 1,000 | 2,000 | 0.0278 | 55.6 |
| G3 | 74,000 | 76,000 | 1,000 | 2,000 | 0.027 | 54 |
| G4 | 76,000 | 78,000 | 1,000 | 2,000 | 0.0263 | 52.6 |
| G5 | 78,000 | 80,000 | 1,000 | 2,000 | 0.0256 | 51.2 |
3.4 Trading execution logic
When BTC fluctuates within the grid range:
- A price drop triggers a buy order, opening a long position.
- A price rise triggers a sell order, taking profit.
- Each completed "buy low and sell high" cycle generates a profit loop.
3.5 Profit example
Assume BTC fluctuates within the range:
74,000 → 72,000 → 70,000 → 72,000 → 74,000 → 76,000
Profit overview
| Grid | Execution range | Number of executions | Profit per execution (USDT) | Cumulative profit (USDT) |
| G1 | 70,000 → 72,000 | 1 | 57.2 | 57.2 |
| G2 | 72,000 → 74,000 | 1 | 55.6 | 112.8 |
| G3 | 74,000 → 76,000 | 1 | 54 | 166.8 |
Total realized profit: 166.8 USDT
3.6 Total profit overview
Current price: 76,000 USDT
The position is in the middle grid range, with overall floating PnL close to break-even. Therefore, unrealized PnL ≈ 0 USDT.
| Item | Amount |
| Realized profit | 166.8 USDT |
| Unrealized PnL | 0 USDT |
| Total profit | 166.8 USDT |
*Note: The above results are based on fixed parameter assumptions and do not take funding fees or trading fees into account. Actual profits are subject to final executions.
4. Strategy description
The profits of AlphaX long futures grid strategy come from:
- Building long positions in batches at lower price levels.
- Taking profit in batches at higher price levels.
- Continuously arbitrage from price fluctuations within the grid range.
- Each completed buy-and-sell cycle generates one profit cycle.
The short futures grid strategy operates in the opposite way:
- Building short positions in batches at higher price levels.
- Taking profit by closing positions in batches at lower price levels.
- Accumulating profits through price fluctuations with the grid range during downward market trends.
Both strategies share the same grid mechanism and differ only in trading direction, making them suitable for different market conditions.
5. Risk warning
Futures grid trading is an automated trading tool and does not constitute investment advice, nor does it guarantee profits.
Main risks include:
- If the price breaks out of the grid range, the strategy will stop.
- Leverage amplifies gains but also increases risk.
- Extreme market conditions may lead to liquidation.
Users are advised to set parameters and investment amount appropriately based on their own risk tolerance.