In the case where the price of ETH/USDT contract fluctuates around 3770, we can design a simplified grid trading strategy based on this price point. Please note that the following strategy is based on a hypothetical scenario, and it needs to be flexibly adjusted according to market dynamics and personal risk tolerance in actual operation.
Strategy Update
Market Analysis: Considering that ETH/USDT is currently fluctuating around $3770, we assume that it may fluctuate within a certain range in the short term.
Grid Settings:
• Grid Range: Set a narrower range to accommodate the current narrow fluctuations. For example, assuming that the upper and lower limits are $3600 and $3900 respectively, a total of 6 grids are set up, each grid is about $50 wide.
• Buy/Sell Points: Set buy/sell points at $3600, $3650, $3700, $3750, $3800, $3850, and $3900, and automatically execute transactions based on price changes.
• Fund Allocation: Divide the total funds into 6+1 parts (an additional part as a reserve fund), invest one part of the funds in each grid, and the reserve fund is used to deal with emergencies or market breakthroughs.
Risk Management
• Stop Loss and Take Profit: Set tight stop loss and take profit points for each grid, such as -3% stop loss and +3% take profit, to protect profits and limit losses.
• Fund Management: Ensure that the risk of any single grid transaction does not exceed 2% of the account funds, and the total risk is controlled within an acceptable range.
Implementation and Monitoring
• Startup and Monitoring: Configure this strategy to the trading robot on the Binance platform, and closely monitor market dynamics and robot execution.
• Flexible Adjustment: If the ETH price breaks through the preset range, the robot should be paused immediately, the market situation should be reassessed and the strategy should be adjusted.
Continuous Optimization
• Review Analysis: Review once a week or every two weeks, analyze the grid execution effect, and adjust the grid parameters according to market behavior.
• Technical Indicator Assistance: Combine technical indicators such as RSI and MACD to assist in judging market trends and adjust grid strategies in a timely manner.
Remember that the market is always full of variables. Although grid trading can automatically execute transactions, investors still need to remain vigilant and respond to market changes in a timely manner. In addition, this strategy is only for example reference. Please make careful decisions based on your personal situation in actual operations.