How to Use the Binance Trading Bots Landing Page?

2022-06-16 04:01

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Binance’s Trading Bots Landing Page aggregates Grid Trading, DCA, Auto-Invest, Rebalancing, TWAP, and VP bots, and other automated algorithmic trading features.

The new landing page also provides a comprehensive overview of Spot and Futures Grid Trading strategies, along with their performance and popularity amongst users, allowing traders to quickly replicate their parameters.

1. How to access the Trading Bots Landing Page?

Log in to your Binance account and click [Trade] - [Trading Bots].

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You may also access it via Binance Futures’ trading interface by clicking [Trading Bots] - [Overview].

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2. What features does the Trading Bots Landing Page provide?

Binance provides quick access to a range of automated trading strategies via the Trading Bots Landing Page. You can also check Bot Marketplace rankings, filter trading bot strategies using different criteria, and get free educational resources from the Strategy Academy.

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Trading Bots List

1. Spot Grid

Spot Grid Trading is a trading bot that automates the buying and selling on Spot trading. It is designed to place orders in the market at preset intervals within a configured price range. Binance Spot Grid Trading performs the best in volatile markets when prices fluctuate within a specific range.

To learn more, please refer to What Is Spot Grid Trading and How Does It Work?

2. Futures Grid

Futures Grid Trading allows users to apply grid trading strategies to Futures Contracts on Binance Futures, allowing them to increase their position sizes using leverage and maximize their potential profit.

To learn more, please refer to What Is Futures Grid Trading?

3. Arbitrage bot

The Binance Funding Rate Arbitrage Bot allows users to earn funding fees by simultaneously holding opposite positions in perpetual futures and spot markets. This delta-neutral strategy hedges price risk by taking long spot and short futures positions (Positive Carry) or by taking long Futures and selling spot positions (Reserve Carry), profiting from the funding rate mechanism.

To learn more, please refer to What Is the Binance Funding Rate Arbitrage Bot and Frequently Asked Questions.

4. Rebalancing Bot

The Rebalancing Bot automatically adjusts your portfolio position in the token combination of your choice. By buying low and selling high, your strategy can maintain the same ratio of asset values through rebalancing at preset intervals or thresholds.

To learn more, please refer to What Is Rebalancing Bot and Frequently Asked Questions

5. Spot DCA

Dollar-Cost Averaging (DCA) is an investment strategy that involves buying and selling an equal amount of assets regularly at different price points. It aims to achieve a better average price for the selected trading pair and reduce the impact of market volatility.

To learn more, please refer to What Is Spot DCA and How Does It Work?

6. Futures TWAP

The Time-Weighted Average Price (TWAP) trading algorithm allows you to disperse a large order into smaller quantities and execute them at regular intervals automatically to minimize price impact.

To learn more, please refer to How to Use TWAP Algorithm on Binance Futures.

7. Futures VP

The Volume Participation (VP) trading algorithm executes large orders with a specified urgency level. It aims to perform a trade at a pace that matches a portion of the real-time market volume by respecting the targeted volume participation level.

To learn more, please refer to How to Use the Volume Participation Algorithm on Binance Futures?

8. Algo Orders

Spot Algo Orders gives you access to our sophisticated TWAP and volume-based execution algorithmic orders to minimise slippage, information leakage and market impact, reducing your execution costs especially for large positions and illiquid assets.

To learn more, please refer to What Are Algorithmic Orders? TWAP & POV Strategies for Crypto Trading

3. How to visualize grid trading strategies’ performances and popularity via the Bot Marketplace?

The Bot Marketplace features top Grid bot strategies on Binance Spot and Futures. You can replicate their parameters to build your own trading strategies.

You can filter grid trading strategies, view the strategies’ ROI, PnL, or Popularity, and replicate the parameters to create a similar bot trading strategy.

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Bot Marketplace data updates

The Bot Marketplace data is refreshed hourly and will only display strategies that are currently active.

To view each bot strategy’s performance, you can refer to two key metrics:

1. ROI (Return on Investment)

ROI = PNL / Investment

  • For Spot grid strategies, investment refers to the total amount of assets committed to the creation of the grid.
  • For Futures grid strategies, investment is the Initial Margin when initiating the grid strategy.

2. PNL

PNL refers to the total profit or loss generated by a trading strategy over a period of time.
Spot grid strategy PNL = Current Value - Total Investment

  • Current value: The total value of assets allocated to the current strategy.
  • Total investment: The amount of assets used to initiate the grid strategy.

Futures grid strategy PNL = Matched PNL + Funding Fee

  • Matched PNL: The realized profit of filled grid orders that are matched by one buy-order and one sell-order.
  • Funding fee: Costs or profits from holding Futures positions, included in PNL for strategies running in the trading bots account.

Note:

  • For grid strategies operating in the master account (either Spot or Futures accounts), Funding Fee is not included in the PNL calculation.
  • For Futures grid strategies, unmatched PNL is not included in the PNL calculation.

How to filter grid trading strategies?

  • Markets - Select a trading pair
  • Directions - Neutral, long, or short
  • Runtime - Choose between seven time intervals
  • ROI - Choose an ROI interval
  • Zone - Specify symbol categories (e.g., CEX, DEX, Layer 1, Metaverse, NFT, etc.)

How to replicate/customize grid trading parameters on Spot Grid and Futures Grid?

Click [Copy] to display the order and its shared parameters.

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Please note that parameters can be adjusted.

You can refer to FAQs What Is Spot Grid Trading and How Does It Work? and What Is Futures Grid Trading? for more details about parameters adjustment.

4. How to check the Funding Rate Arbitrage Bot on the Bot Marketplace?

On Bots Marketplace, click [Arbitrage] to view current arbitrage opportunities ranked by APR. Filter by USDⓈ-M or COIN-M strategies under [Zone] or filter by [Direction], either Positive or Reverse Carry. You can also sort by 3d/7d/30d or Next Available APR.

To open an arbitrage strategy, click [Create] and enter your [Investment] amount.

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5. How to visualize trending pairs and volatility under the trading analytics view?

Top 10 Trending Markets

The Trading Analytics tab displays the top 10 trending asset pairs by the number of strategies running.

You can quickly look at the symbols with the highest number of grid orders and set up a grid trading strategy by clicking [Copy].

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Top 10 Volatility

You can also view the top 10 trending asset pairs by volatility, which is a crucial indicator for users deploying grid trading strategies.

The volatility % is calculated based on the symbol's hourly closing prices over the past 30 days.

To calculate the volatility for each symbol, refer to the steps below:

  • Step 1: Get the hourly close price data for each symbol: P1, P2,...., Pn
  • Step 2: Find the natural logarithm (LN) for the price data in the first step: LN(P1), LN(P2),...., LN(Pn).
  • Step 3: Calculate the price change ratio(Return) for each period starting from time T2 based on the results from the second step. e.g. LN(P2)-LN(P1), LN(P3)-LN(P2) .... LN(Pn)-LN(Pn-1). If Step 2 involves computing log returns or differenced prices, then Step 3 would calculate the percentage change (or ratio) in prices from time T2 onwards.
  • Step 4: Calculate the volatility sigma.
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  • Step 5: Calculate the annualized volatility.
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