Why do grids matter in my profits or losses within a futures bot?
📈 In Futures, increasing the grids can enhance profits in sideways markets, but with risks amplified by leverage.** A bot with adjusted grids operates more times within the range, taking advantage of small fluctuations to accumulate profits. Each low buy and high sell is multiplied thanks to leverage, which in narrow and stable ranges can generate significant returns. However, this only works if the price remains within the defined range, as leverage also magnifies losses if the market moves against it.
📉 The biggest danger in Futures is the "breakout" with leverage, which can quickly liquidate positions.** If the price breaks the range, the bot continues opening trades in the wrong direction, and leverage turns those losses into catastrophic ones. Additionally, very tight grids in volatile markets can lead to over-trading, increasing fees and depleting capital. To minimize risks, it is crucial to use wider grids in volatile assets, adjust leverage prudently, and set protective stops. In Futures, risk management is even more critical! ⚠️🔥
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