Which contracts are supported and which account needs to be funded?
Grid Bot Trading only supports USDT-M Perpetual Contracts (Using USDT as margin). You should fund your Phemex USDT Contract Trading Account. This account is specifically designed for futures trading activities, including grid bot trading. Bonuses cannot be used in Futures Grid Bot.
Where can I find detailed ROI expectations and operational parameters for each bot?
For detailed insights into each bot's ROI expectations and operational parameters, including the specific levels set for grid bots, you can refer to the individual bot descriptions in our bot marketplace. This information helps you understand the strategy and potential returns for each bot. For detailed information, please check Trading Bots Page
How can I track the daily performance of each bot?
To track the daily performance of each bot, you can utilize the feature on our platform by visiting Funds Page. Here, you can select "Type: Transfer(Trading Bots)" under Contract Trade Accounts to view the history and performance of your bot trading activities.
How does this work? Can you provide an example?
Grid trading involves placing orders at gradually increasing and decreasing prices, both above and below a predetermined price level. The system divides the price range of an asset into multiple levels and places pending orders at each level. As the price fluctuates, buy and sell orders are executed automatically, enabling traders to profit from market movements within the established grid.
Let's illustrate with an example using the long grid strategy.
Imagine the initial last trade price is $29,400, and the price subsequently rises to $35,400.
When the price drops to the buy order level, a sell order is placed above it. Conversely, when the price hits the sell order level, a buy order is placed below it. The highest grid level only has sell orders and the lowest only buy orders.
If the price falls below $28,000, you'll have a long position. If it keeps dropping, more long positions are added. Once the $28,000 buy order is filled, a $30,000 sell order is pending. When it sells at $30,000, the position closes with profit.
If the price goes to $26,000, the position increases: the $28,000 buy order results in 1 position, pending a $30,000 sell order. Similarly, the $26,000 buy order results in 1 position, pending a $28,000 sell order. The -$28,000 position closes at $30,000, and the -$26,000 position closes at $28,000.
What are the different strategies available?
- Long: Suitable for trending and volatile bull markets. It involves opening long positions when creating the grid.
- Short: Suitable for trending and volatile bear markets. It involves opening short positions when creating the grid.
- Neutral: Suitable for trending and volatile sideways markets. It creates buy and sell orders with grids but without establishing positions.
Then, the bot places pending sell orders above the last price and pending buy orders below the last price. Phemex's grid trading intends to allocate and trade the entire amount according to the selected strategy (Long/Short/Neutral) at the market when the bot is started. This approach ensures that the strategy is activated and operational from the start, with subsequent limit orders occurring as price levels on the grid are triggered
How can I set my Futures Grid trading bot on Phemex? What parameters should I consider when setting it up?
Two main parameters to consider are:
- Strategy selection: Long, Short, or Neutral.
- Grid Size: This affects the number of trades, required investment, and potential profit and loss. Higher numbers of grids result in smaller percentages of profits per grid but may incur more trading fees.
For detailed information, please check: How to Use Futures Grid Trading Bots on Phemex?
What are the limits for upper and lower prices?
Grid price lower limit: Price precision is the same as the corresponding trading pair. The price range is limited to [latest transaction price * 10%, 999,999]
Grid price upper limit: Price precision is the same as the corresponding trading pair. The price range is limited to [grid price lower limit * 1.005, 999,999]
If the Latest Trade Price goes beyond the price range, the grid strategy will stop placing orders. Once the Latest Trade Price returns within the range, the strategy will resume placing orders.
Why does the Realized P&L turn negative when the profit/grid shown during creation is between +1% and -1.5%? And are trading fees included in the Realized P&L
Realized PNL: PnL from a portion of the trading bot’s closed positions during operation (DCA method). You can understand it as the same as Standard Mode Trade.
For example, the price plummeted from 450 to 100. At each price level, a buy order was placed:
Buy 400 at size 1
Buy 300 at size 1
Buy 200 at size 1
Buy 100 at size 1
After these trades, a long position was established, with a size of 4 and an entry price of 250.
As the price begins to rise, reaching 200, your position will close once:
Close one position at size 1 with a closing price of 200
At this point, the grid PNL can be calculated as follows:
Grid PNL = (200 - 100) * 1 = 100
However, it's important to note that trading fees are incurred. Thus, the realized PNL, as well as the grid PNL, will include these fees.
Additionally, the rePNL (realized PNL) can be determined:
RePNL = (200 - 250) * 1 = -50
Where can I find more information about the formulas used?
For detailed information about the formulas used in Phemex Futures Grid Trading Bot, please check: Phemex Futures Grid Trading Bot Formulas
Do they come with any associated fees? Are they also Maker or Taker?
The bot considers both funding fees and transaction (exchange) fees. Both are included in the realized P&L. For detailed information, please check Fees & Conditions and Funding History
Moreover, here is an explanation on the fee structure for the bot trading:
Initial Position: For the initial position, users are required to pay the taker fee.
Long Grid Example: When selecting 10 grids, the system places 10 buy limit orders. Among these, seven orders with prices lower than the current price are considered maker orders. Meanwhile, three orders with prices higher than the current price are executed immediately as taker orders, opening the initial position.
Subsequently, the system places opposite-direction orders.
Short Grid Example: Similar to the long grid, orders below the current price are considered taker orders and will be executed immediately, opening the initial position.
In summary, the system places orders for the number of grids you select, and depending on the current price, some become maker orders, while others become taker orders.
SL/TP Orders: Since Stop Loss and Take Profit orders are conditional market orders, they will be executed as taker orders once triggered.
How do trading bots factor in liquidation?
Let's illustrate with an example using the neutral grid strategy.
In a neutral strategy, a bot will place limit orders to buy low and sell high within a specified price range determined by the number of grids. Initially, there's no estimation for the liquidation price.
For instance, if the market declines after placing the neutral bot, buy orders will keep filling, leading to a large position. This differs from a traditional long position with fixed leverage and margin, reducing the risk of liquidation. Unrealized profits and losses affect the initial investment, and if losses increase beyond a certain threshold, the bot may face liquidation. Note: Orders are confined to the price range specified for the grid.
