Have you ever lost money in trading due to an avoidable error? We have a solution.
Futures has been one of the most used financial tool in both stock markets as well as cryptocurrencies. It provides leverage and lets a user trade multiple times their monetary capacity. But this has become risky due to human error.
With technology, automatic trading has developed where software’s (bots) can be used to enter and exit at fixed prices eliminating the human error while ensuring that your trading capital is not eaten up.
Below are a few Trading Bots that can ensure timely entry and exit and eliminate human error to save you from an unnecessary loss.
- Futures trading allows you to buy or sell the underlying commodities at a fixed price in the future.
- Traders need to close their market positions before the contracts expire.
- There are many futures trading bots providers in the market, and the best of them are Pionex, Bitsgap, and 3Commas.
- Pionex comes with a GRID trading bot and DCA trading bot to automate your trading strategy.
- 3Commas offers GRID, DCA, and Options trading bots to its users.
- The Spot Futures Arbitrage bot by Pionex came out recently. It provides a way to earn up to 50% APY with minimum risks.
- Bitsgap is one of the best trading bot providers and supports up to 25 major trading platforms.
- The platform recently came out with its Bitsgap Binance Futures bot that makes small returns using hundreds of orders in a day.
- You can also copy an already existing bot at 3Commas using the copy trading bots option.
- Except for Pionex, Both futures bot providers connect with your trading platform using API keys and can never withdraw any funds from your trading account.
- Each of these platforms comes with a subscription plan and has specified features.
Before moving forward, let’s understand the basics of Futures trading, which involves futures contracts.
What is a Futures Contract?
A futures contract is a legal agreement to buy or sell a commodity at a specified price in the future. The buyer is obliged to buy and receive the underlying commodity when the futures contract expires. At the same time, the seller is obliged to sell and deliver the underlying commodity when the contract expires.
What is Futures Trading?
Futures trading is not about receiving the underlying asset when the contract expires, as investment managers and traders do not need items such as 1,000 barrels of oil. However, they are highly interested in making a profit from the price movements of oil.
Traders trade the underlying commodities on leverage to gain returns; however, they need to close their trades before the contract expires. Numerous futures contracts expire on the 3rd Friday of every month; however, it does vary depending on the contract. So do proper research before investing in a futures contract.
How does Futures Trading work?
Traders invest in a futures contract using a trading platform such as Binance, BitMEX, Bybit, etc. Some of these platforms, such as PrimeXBT, offer 1000x leverage, so you do not need to have significant capital. Investors buy and sell the underlying commodities before the contracts expire. The difference between the buying and selling prices is their profit.
What are Futures Trading bots?
Since you trade futures contracts on leverage, even a slight change in the market price can significantly impact your capital. Hence, you must keep human emotions such as fear, greed, anger, etc., out of the market.
However, it is difficult to control your emotions toward the money you’ve invested as a beginner. This is where trading bots come in; they automate your trading and execute pre-planned trades.
How do trading bots work?
Trading bots execute buying and selling in a pre-defined way. They will enter the market when a set of conditions given by you are fulfilled. For example, it will buy or sell a coin when the price goes below a certain level.
Trading bots work fine but it is advisable that you monitor a few trades manually before trusting them with a larger capital.
Trading bots like Bitsgap, Pionex, and 3Commas have been used my thousands of users and hence are much safer than relatively new ones.
Best Futures Trading bots
There are various trading bot providers in the market, and below are the best three of all options you get.
1. Pionex Trading Bot
What is Pionex?
Pionex is an exchange and trading bot, provider. Their automated bots allow you to execute your trading strategies without staring at the screen 24*7.
Since the bots are available for free, it is well suited for users who are starting with low capital. The trading bots provide a host of features. Further, there are 12 trading bots available with Pionex.
To learn more about how to use use the platform, read our Pionex Trading Bot review.
Pionex offers a huge array of 16 different trading bots that helps you trade with flexibility. The most recent one is the Pionex Spot-Futures Arbitrage Trading bot.
Spot-Futures Arbitrage bot
Pionex recently came out with its Spot-Futures Arbitrage Trading bot that offers up to 41.6% APR. It is advised that this strategy is to be used only by aggressive traders. The bot gains returns by distributing your capital equally in the spot and futures market based on the leverage of your choice.
The Pionex Spot-Futures Arbitrage bot is the one with minimum risks involved. You can try it and choose to upgrade later if required.
How many grid bots are on Pionex?
Pionex offers 2 different types of GRID trading bots: “Use AI Strategy” and “Set Myself”. It is based on one of the most basic trading strategies of buying low and selling high. All you have to do is select the region you want the bot to execute trades on your behalf.
Although, you must be sure about the region you’re assigning the bot. With Grid trading, your losses become smooth if the market goes in the opposite direction.
Pionex DCA trading bot
DCA or Dollar Cost Averaging is an investment strategy that involves periodic investments in an asset. Suppose you have to invest $100 to invest in bitcoin. Then instead of investing $100 at once, you invest 10 dollars every Monday. You can change the investment period accordingly.
Pionex offers a DCA trading bot that automates the above process.
Pionex uses Binance and Huobi’s market maker and enjoys meager trading fees at these platforms. Therefore the platform charges you a 0.05% trading fee, which is lower than most major trading platforms. However in case of leveraged trading the fees are even less. Maker and taker fees in leveraged trades are both at 0.1%.
Withdrawal fees at Pionex is shown in below table, you can also visit Pionex fee page for more details.
Pionex Mobile App
Pionex offers a straightforward and interactive mobile app for android and iOS users. The app has the best UI/ UX among all the crypto trading bots’ mobile apps. You can keep track of the market and all of your trading bots at Pionex using its mobile app.
Is Pionex safe?
Pionex is a safe and legit platform. It is aggregated from Binance and Huobi and therefore your funds are securely stored in these exchanges. The platform comes with a U.S. FinCEN’s MSB License. You can also enable 2FA for an additional layer of security to your Pionex account.
2. 3Commas Futures Trading Bot
What is 3commas?
3Commas is an online platform offering its services by providing trading bots to automate its users’ trading strategies. It is a Miami-based company and allows users to follow pre-set trading strategies or one of their own.
You can easily connect your trading platform to 3Commas using API keys without giving the bots withdrawal rights.
To learn more read, the 3Commas review.
3Commas GRID Bot
The GRID trading bot at 3Commas allows you to set a buying area and selling area. The bot will automatically follow the most basic strategy of buying low and selling high.
3Commas DCA bots
Dollar-Cost Averaging bots at 3Commas allow you to invest at preset regular intervals, automatically averaging your buy price.
3Commas Options bot
Learning about options can be one of the most challenging tasks. However, it is because they offer possibilities of high returns. You can buy a Call Option and be bullish; else, you can buy Put Options and be bearish while dealing with options. 3Commas provides an options trading bot, and to learn more, visit 3Commas.
Copy Trading Bots at 3Commas
You can discover previously configured bots on 3Commas and copy their setting to create your trading bot. Additionally, you can adjust the configuration and settings of the copied bot. However, you should be considerate about the funds you own before running this bot.
3Commas offers four subscription plans to its users, Free, Starter, Advanced, and Pro. Additionally, by choosing longer ones you get discounts on them. The plans are available as monthly and yearly. The details of each are as below:
Is 3commas safe?
3Commas is not clear about its security protocols; however, the trading bots at 3Commas cannot withdraw any funds from your trading account, as they run using API keys. In addition, 3Commas collects users’ trading data and uses it to enhance its trading bots.
3. Bitsgap Futures Trading Bot
What is Bitsgap?
Trading bots help you automate your trading strategy. Bitsgap is one of the best trading bots providers in the market. It supports over 25 trading platforms including Coinbase, Binance, Poloniex, Kraken, Bitfinex, etc. The platform offers a demo mode for its users to try the bots before investing real money into the market.
To learn more read, the Bitsgap review.
Bitsgap Futures bot
The Bitsgap Futures trading bot completely automates your futures trading. It is capable of gaining returns from both rising and falling markets. The bot opens and closes hundreds of positions in a single day and takes smaller returns. The bot works with both GRID and DCA trading strategies. However, as of June 2021, the bot is only available to use on Binance.
To learn more read our review on Bitsgap Binance Futures bot.
GRID trading bot
Bitsgap GRID trading bot works a bit differently as it calculates the profit per grid. It does so by subtracting the trading fee % per grid from the price % for buying and selling. The platform recommends setting your profit per grade between 0.5-2%, it also allows you to set GRID spacing and quantity. To learn more read, the three crypto GRID trading bots.
The backtesting feature at Bitsgap studies the previously configured bots and for a bull or bear market. It then gives you a list of markets where the trading bot provides maximum returns over a fixed interval.
Is there a Bitsgap App?
No, Bitsgap does not offer its services through a mobile app yet.
The platform provides its users with crypto signals and an opportunity to gain returns from market movements. These signals help traders recognize the price movements early; however, they cannot configure price movement alerts.
We have a list of telegram channels that helps you get signals on crypto trading.
The platform offers you a 14-day free trial of the trading bots. However, after the free period ends, you are required to get a subscription. Bitsgap offers three different types of subscription plans to its users. Below are the pricing and features of each plan in the below image.
Is Bitsgap safe?
All of your funds remain secure in your trading platform’s wallets. Since the trading bot uses API keys to connect your trading platform with Bitsgap, it does not have permission to withdraw on your behalf. Bitsgap suggests you use 2FA, and if you go through too many unsuccessful login attempts, it will lock your account.
Phemex, a top 5 exchange known for its AI bots for trading, offers a complete futures bot trading feature that is tailored for beginners. The bot enables users to automatically execute buy and sell orders for futures contracts at personalized preset prices.
The feature supports three distinct strategies and allows traders to navigate changing market conditions. Currently, the Phemex grid trading bot supports futures contracts, with spot contracts coming soon. Both novice and seasoned traders are welcome to use the feature to manage their future trading activities and take advantage of market movements.
Now is actually a great time to try out futures grid trading bots, as the limited-time xPT pre-mining event is still ongoing. Trading volume generated from Phemex trading bots counts toward pre-mining, so users can use this tool to earn more xPT airdrops.
Is the futures grid trading bot on Phemex free of charge?
Yes, the feature is completely free for all users.
Does Phemex have an app?
Yes, traders can automate their profits with futures grid trading bots on Phemex and the Phemex app.
Is Phemex safe?
Yes, Phemex is a top trading exchange offering a cutting-edge platform. Using an innovative cold wallet system, Phemex always ensures users’ funds’ safety at all times. Additionally, any user can take advantage of the Proof of Reserves tool on Phemex to verify the secure storage of their assets.
5. The Altrady Futures Trading Bot
Altrady’s unique automated crypto trading tools have thousands of traders using it every day to maximize returns by automating their trades. The company offers several types of bots, including GRID and SIGNAL Bots, that provide experienced traders with an easy way for them to take advantage in fast-paced markets without having any knowledge or skill set on hand.
Altrady offers the complete toolset for every style of crypto trading:
- Trade on multiple exchanges and exchange accounts
- More than one account on a single exchange
- Real time break-even calculation
- Offline price and order alerts
- Visual trade feedback on the chart
- Unique integrated market scanners
- Trade automation with take profit and stop loss
- Signal bots with tradingview webhook or Crypto Base Scanner signals
- Grid bots with trailing up and down
- Portfolio management with subaccounts
- Trading analytics
Worth mentioning that they are continuously improving their set of features, and on their short roadmap Q3-Q4 of 2022, they will add:
- New mobile app
- Portfolio with external wallet support
- Dex integration
- Paper trading
Leverage your knowledge and skills with the most advanced trading platform there is: Altrady 14 DAYS FOR FREE
Best Futures Trading Bot: Conclusion
Bitsgap, Pionex, and 3Commas are the best futures trading bots in the market. Each of these platforms come with their specifications.
- On the one hand, Pionex provides the Spot Futures Arbitrage trading bot with up to 50% APY.
- The Bitsgap Binance Futures bot opens hundreds of positions every day to make smaller returns.
- 3Commas provides an option to copy trading bots of other users based on the returns provided by the bot.
If you’re looking for a longer and safer investment and top performance, then you can go for Pionex or Bitsgap. However, if you’re looking for more variety, then you can choose 3Commas.
Frequently Asked Questions
What is Margin Trading?
Margin is the minimum funds required to do leveraged trading. When a user trades in a leveraged manner, some funds are secured as margin. This is called as margin trading.
Why margin is required?
Margin funds makes sure that the an user does not deny payment if they incur a loss.
How to connect Bitsgap with Binance?
To connect Binance with Bitsgap, head to my exchanges section and click Add new Exchange. Now select the exchange you wish to connect. Head over to your Binance API management section and copy-paste the API Key and Secret Key to their respective fields.
How to make a 3commas trading bot?
The first step to make a 3Commas trading bot would be to sign-up to the platform and choose a subscription plan. Then head to the main menu and select the type of bot you wish to create. Let’s assume it’s a GRID trading bot; after that, move to the advanced section to name your bot and select your trading platform. Finally, select your trading pair and customize your bot according to your trading strategy.
How does a trading bot work as instructed?
Trading bots are connected via the exchange by various methods, such as API keys. The exchange to users issues these API keys and help authenticate the user and execute trade on your behalf.
How does Pionex Grid Bot work?
Pionex Grid Bot works by buying a token or coin at a low price and selling it at higher prices. You must select the zones where the bot can execute buying and selling.
Is the 3Commas Bot free or paid?
3Commas bot is available for free as well as paid. The free version has all the necessary features, such as GRID bot, DCA bot, Options bot, and Smart Trade.