At 20:00 on August 10, 2023 (UTC+8), Momo @momo_hodl from the Binance Futures team shared a wonderful talk on "Binance Trading Robot" in the Binance Chinese Community. The following is the main content of the talk:
Q1: What is a trading robot?
When everyone thinks of trading robots, they will definitely discuss strategic trading. Strategic trading is to define and describe your own trading mode in a clear way, and let the trading robot and program execute transactions according to the set rules. You can imagine that you are the director of a situational drama. You write different scripts according to different situations. The trading robot is the actor. As long as your script is set, the trading robot will perform according to the script. It relies on a preset strategy and algorithm, and when the market reaches certain conditions, it will automatically help you buy or sell assets. The best thing is that it can keep an eye on the market 24 hours a day and will help you make a move as soon as there is an opportunity.
Why do we need trading robots? First of all, robots will not be affected by emotions and will not panic due to market fluctuations (stay away from FOMO). Secondly, the robot can keep an eye on the market 24 hours a day and will not miss any opportunities. The most important thing is that the robot can save you a lot of time. You don’t need to stare at the screen all the time, so you can watch TV series and play games without any worries.
Q2: What are the Binance trading robots?
I don’t know if you have ever used Binance’s robots, but I think you may have heard of spot grid robots. It is actually a strategy of buying low and selling high through small fluctuations in the market. As for the contract grid robot, it should be the most vocal in the community. It uses a similar strategy in volatile markets, but what's special is that it can use a short strategy when the market is falling and use leverage to amplify your gains. Next, let’s talk about the intelligent position robot. This is a tool that is very suitable for long-term investors. It can provide a diversified position portfolio and automatically sell high and buy low for you, with the purpose of helping you increase your assets. The function of spot DCA is to help investors invest when the market is low, which can effectively reduce the average price of your investment. Finally, what I want to introduce to you is time-sharing delegation, which is also commonly known as TWAP. Whether it is contract TWAP or spot TWAP, these tools are specially designed for large transactions, ensuring that the impact of your large transactions on the market is minimized.
Q3: What is a trading robot account and which trading robots can be run in this account?
Binance trading robot account includes spot grid, contract grid, smart position, and spot DCA. This is completely independent from the original spot and contract accounts/wallets, making your trading experience smoother and conflict-free. The information is also organized and made into pictures for everyone. Please remember to save it.
Q4: Can you tell me more about grid trading?
no problem! Let’s take a closer look at Binance’s two grid trading tools: spot grid and futures grid. Grid has always been a robot that has been discussed a lot and loudly in the community. Many people are eager to try it but have little understanding of it.
First, let’s talk about what grid trading is. Grid trading divides the price range into a grid, with different price points one by one. The trading robot helps you execute the buying and selling. Take the spot grid as an example. It automatically buys low and sells high in the spot market to earn interest differentials from market fluctuations. To give a simple example, suppose you are bullish on BTC and judge that BTC will fluctuate from 20,000U to 35,000U (just an example, not any investment advice). You can use grid trading to make profits by "buying low and selling high" along the way. At this time, as long as the price falls between 15000U-30000U, the "buy order" will be automatically triggered. When the price rises online, a "sell order" will be automatically executed. The grid uses the fluctuations in this price range to create profits by buying and selling.
Next, let’s talk about the contract grid. The principle of contract grid is similar to that of spot. Except that contract grid operates in the contract market, the biggest difference is that the market situations that can make profits are different. The contract grid can move in three directions according to market trends: long, short, and flat. Going long means you are bullish, whereas going short means you are bearish. As for neutral (or neutral), it means that you think the currency will hover around a price range within a certain period of time, with no clear price direction (simply put, it can be done regardless of whether the market is spring, summer, autumn or winter).
Spot prices can only be long, which is suitable for bull markets, but contracts can be short or flat, so both bull and bear markets can be done. In addition, the contract grid can be leveraged to amplify the results. It should be emphasized that grid trading has two major advantages: First, it can automate trading, so that you don’t have to keep an eye on the market all the time, and it can avoid emotions interfering with trading strategies. Second, the way to make profits is relatively stable. As long as the market fluctuates, you will have the opportunity to earn the difference. I also share two articles here, hoping to help everyone learn: "How to select and copy contract grid strategies on Binance Futures" and "Step-by-step guide to grid trading on Binance Futures".
Q5: Can you talk about smart holdings and spot DCA?
First, let me talk about smart positioning. This is a strategy designed to diversify risk and automatically balance a portfolio over the long term. It sounds very abstract, but let me give you an example and you will understand.
For example, if your investment portfolio wants BTC to account for 35%, ETH to account for 35% and BNB to account for 30% (not an investment suggestion!) When the price of BTC rises, the smart position will automatically adjust your portfolio, sell some BTC and then buy again ETH and BNB to ensure that the combination ratio is always what you set. Let’s talk about spot DCA. It is an automatic buying strategy. When the price drops to a certain price you set, it will help you buy. This can not only help you reduce the entry cost, but also allow you to buy. Spread the risk.
Let’s talk about the difference between fixed investment and spot DCA: fixed investment is a “regular fixed amount” purchase, and the main purpose is to hold it for a long time. Spot DCA, on the other hand, buys through "pricing quota", enters the market when the price is low, and sells when the price reaches your desired level.
I know that some friends may still be confused about the difference between spot grid and spot DCA, so I will explain it here. Mainly, the spot grid focuses on making profits from small market fluctuations, while the spot DCA focuses on diversified purchases and waits for the price to rise before selling. Some people will definitely want to ask, how to choose from so many robots? Which strategy you choose depends on your investment goals and risk tolerance. Fixed investment is suitable for friends who invest in long-term and fixed amounts, spot grid is suitable for friends who want to trade frequently and take advantage of small market fluctuations, and spot DCA is suitable for investors who want to enter the market at a low level and earn profits from rising prices. I hope that the above explanation can help you find a strategy that suits you.
Q6: What are the benefits of using a trading robot account to open a contract grid?
I want to share with you two major advantages of using a trading robot account for grid contract trading. First of all, before you have a trading robot account, assuming you open the BTC contract grid, you can no longer open manual contract transactions.
. Now with a "Trading Robot Account" it's like you have a two-lane highway that allows for two different trading modes at the same time: contract grid trading and standard or manual contract trading. In other words, you can open BTC grid and general orders at the same time. This parallel transaction makes your operation more flexible and you no longer need to hesitate between different trading modes. Secondly, you can also adjust the margin of the contract grid independently. You can flexibly adjust your capital investment according to your own strategy and market conditions.
However, I would like to remind everyone that although there is a "trading robot account" in the name, you don't actually need to open a new wallet or account. Again, you don’t need to open a new wallet or account. The actual operation is like this: if you open the grid with a margin of 100U, the 100U will automatically be moved to the dedicated wallet of the "Trading Robot Account", and the funds will be transferred back to your original wallet after the end. In addition, what is different from the previous version is that when using a trading robot account to open a grid, if the grid is terminated, for example, you actively close the grid, or the price reaches the stop-profit and stop-loss levels, the position will be automatically If the position is closed, the original grid order will also be cancelled. Also, when a trading robot account opens a U-standard contract grid, it does not support multi-asset mode and isolated positions. Please pay attention here~
Q7: Is there any way for novices to get started quickly?
Of course! Today I will introduce you to a simple and practical way. Want to find the best strategy quickly? Don't miss our "Popular" tag feature. Through this function, everyone can easily find grid trading strategies with excellent performance in the market, and these strategies have been verified in real market environments, so they can provide everyone with a good reference.
Now, let me show you how to operate in simple steps:
First, open the homepage of Binance Futures. In the upper menu, you will see the "Trading Robot" item, click on it. Select "Contract Grid".
Next, there will be a "Popular" tab on the right side of the screen, click on it! Here, you will see a variety of strategies, and you can choose the strategy that best suits you based on factors such as "running time", "yield" and "return rate".
Once you’ve made your selection, enter the amount you plan to invest, then click “Start Running Grid” and you’re done!
Afraid of not remembering? fine! I have prepared teaching materials for you:
Everyone save it, it’s very useful. In addition, you can also go to the Binance Strategy official telegram group to discuss and learn from other friends. In this communication group, the ladies from the community operations and VIP teams will not only answer your questions, but also share the latest strategic trading activities and tutorials with you. There are still activities in the group. As long as you discuss and post orders, you will have the opportunity to share the bonus.
Q8: After the grid strategy ends, can the original position be retained?
Currently, after closing the contract grid strategy, all positions will be closed at the market price. However, our team has received everyone's voices and needs, and we will have the opportunity to introduce the option of retaining positions in the future. Please be sure to continue to pay attention to us.
Q9: Is it possible to open multiple grid strategies in one transaction?
Many friends are asking this question. Currently, a trading pair can only run one grid, but our team has already started working on this function, and there will be opportunities to support this function in the future.
Q10: Is it free to open a trading robot account?
This question is so critical. Many people really ask, if they want to talk about such a powerful product, should they...? Yes! This function is free, and you can use the functions and services under the trading robot account without additional payment. So please use the Binance trading robot more~
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