The popular idiom- "Whatever is worth doing at all, is worth doing well”, can be traced to its premier use in a letter, the 4th Earl of Chesterfield, Philip Stanhope sent to his son in 1774. 

That idiom helps amplify the message that anything beneficial or profitable you've set out to accomplish, it's best that you put in the extra effort to get it done to achieve maximum success.

So if you must trade Futures, you should put in the extra effort to trade it well like a Pro and this involves using the best trading strategies; choosing profitable trading pairs, opting for easy-to-use trading techniques and features, and trading on a platform that is reputable, efficient, and secure with low-trading fees like Binance-the most popular trading platform.

By the way, before we proceed, I would like to inform you that Binance turned 5 recently and they are giving away so many goodies to celebrate their anniversary. Here is a direct link to claim yours.

Let's proceed. 

Trading generally in the crypto volatile market can be very stressful, time-consuming, and sometimes disappointing especially when your trades go against your prediction, or analysis, or even worse when you trade like a novice.

Many traders have sorted out ways to leverage the nature of crypto trading to earn profits trading. The simple truth about crypto trading is that volatility is in its genes, therefore whoever hopes to leverage crypto trading to make profits must be prepared to trade the volatility, and learn trading skills, strategies, and techniques to substantially succeed, and that lays the groundwork for "trade like a Pro mindset".

If you are reading this article, you sure probably want to trade like a Pro, and Binance has some exciting trading strategies incorporated in its Futures Trading that you may want to try due to its effectiveness and high success rate.

Kindly remember that I am not a financial adviser, and all my crypto articles like this one you're reading now are mere trading guides drafted from mainly my research work and experience as a seasoned crypto trader.

In this article, you will learn all you need to know about using trading strategies to trade Binance Futures like a Pro. It will discuss three (3) trading strategies available on the Binance Strategy Trading landing page, and a Step-by-Step Guide to using the strategy trading interface.

Are you excited to learn? Let's jump in right away…

To harvest sweet apples, you first need to plant an apple seed- am I right?

In the same vein, to use strategy trading, you need to first understand what it involves. So let's begin our learning class by discovering what strategy trading means and what benefits are there, if any, from using it.

What is Strategy Trading？

Strategy Trading is an automated or manually fixed plan based on profitable trading principles and designed to aid traders in accruing a positive ROI when they enter trades either by going long or short in financial markets. 

When a trader uses a strategy that has been tested to generate profitable ROI, the chances of accruing profits are higher than losses and generally, minimizes and almost mitigates risk.

Now let's discuss the benefits of using strategy trading because there are many awesome benefits.

Benefits of Trading Futures using Strategy Trading.

The benefits of strategy trading can be compared to the benefits of using an automated command to complete tasks- easy and efficient.

Strategy Trading offers numerous benefits and some key ones are outlined below:

• Very efficient and easy to use to trade futures contracts.
• Minimize Losses and gives you a higher rate of wins which means more profits.
• It can be automated or set manually, hence its accessibility to both seasoned and non-seasoned traders.
• It helps to remove trading with emotions.
• It creates a higher rate of order execution without a need for continuous monitoring of market conditions.
• It helps to execute tailored conditional orders.

Strategy trading can be your ticket to profitably trading the volatile crypto market successfully.

Now that we have an in-depth knowledge of what strategy trading is, and the awesome benefits that it can bring if effectively used, let's discuss three (3) types of strategy trading available on the Binance Futures interface. 

As we discuss each of them, take note of the trading principle it is developed on, when it is most effective and if it is the best fit for your trading style.

The First Strategy Trading.

The first Binance Futures strategy trading available to all Binancians trading futures is Futures Grid Trading and this strategy is developed on the trading principle to buy low and sell high at regular or preset grid intervals.

What is Futures Grid Trading?

Futures Grid trading strategy is one of the most widely used trading strategies as it is based on the most popular crypto trading basics to buy the dips and sell the highs. 

Using this strategy requires placing orders along a grid; taking into consideration the historical price data of an instrument which is usually found on the asset price activity charts to pick out grid points to set both buy and sell orders. 

Profits are made when there are price movements of financial assets and so by using this strategy to set lower and upper price limits and then placing orders to buy below the market price close to the lower limit and placing sell orders above the market price close to the upper limit price; profits are made in batches along the set grids whether the price of the asset increases or decreases depending on your market play- Long/Short.

When should you use this strategy?

Grid Trading works best in volatile markets where there are sharp price movements and for trading pairs with higher volatility.

How does Futures Grid trading work?

Let us consider an example:

Bitcoin (BTC) is known to be a very volatile coin; meaning the price of BTC rises and drops rapidly.

To set up a Grid Strategy trading for BTC, we need to set parameters or allow the AI bot to use historical data to choose the parameters.

Historical data of BTC will help us choose a lower and an upper limit price around the market price which then forms the grid range to select grid points to place buy and sell orders.

Take a look at the image below;

If the current BTC price is $22,000; we need to pick a lower limit and an upper limit price that will form the range for the grid orders. The lower limit can be at $17,500 where BTC has support and the upper limit may be at $23800 where BTC has resistance. 

Grid price points from $17,500 upwards can be set to place Buy/Long orders, while grid prices close to $23,800 can be set to place Sell/Short orders depending on your trading preferences.

The Binance Futures Grid Trading offers flexibility with the option for traders to use an AI BOT to set the parameters automatically or configure the parameters manually, which gives room for seasoned traders like me to experiment and perfect trading strategies.

For a comprehensive understanding of Futures Grid Trading, consider reading my published article on Grid Trading here or look up this reference on Binance FAQ

Also, consider looking up this article that explains What is Long/Short Grid Trading?

Here is an extra incentive for you to use Futures Grid trading: 

Binance Futures has launched the Strategy Trading (Grid Trading) chat room to encourage the sharing of futures grid trading knowledge and strategies amongst users. To celebrate the launch, users may join the new chat room and share 2,999 BUSD by participating in promotions.

Hit this direct link to the info to learn how to take advantage.

The Second Strategy Trading.

The second Binance Futures strategy trading available to all Binancians trading futures is TWAP Algorithmic Trading meaning Time-Weighted Average Price Algorithm Trading. This strategy is developed on the principle of trading with algorithms or programmed calculations based on the Time-Weighted Average Price of a chosen trading pair.

What is TWAP Algorithmic Trading?

Time-Weighted Average Price Algorithm Trading is an API-integrated trading strategy that allows users to programmatically leverage Binance’s in-house algorithmic trading capability to distribute a large order into smaller quantities and then execute these smaller quantities at regular intervals automatically to minimize price impact.

The goal of this algorithmic strategy trading is to achieve an average execution price close to the time-weighted average price of the user-specified period.

When should you use this strategy?

TWAP trading algorithm is used when a trader has a large order to execute and wants to mitigate the significant market impact. TWAP is then deployed to optimize a trade’s average price by slicing orders execution over a specific time duration. So basically, TWAP is used whenever a trader is about to place an order size larger than available liquidity on the order book or when there is an anticipation of a high price volatility period with no clear upward or downward trend like in the case of BTC most times.

How does the TWAP algorithm trading strategy work?

To understand how the TWAP algorithm works, take a look at the illustration of TWAP Algorithm Execution Patterns in the image below;

Assume that a trader wants to place a trade order to buy/sell a $20,000 trade size.

The trader simply selects the order trade size-in this case $20,000 and then sets the execution time- in this case,30mins.

At the end of 30mins, the TWAP strategy completes all orders, the TWAP order will stop.

Note: The minimum order size to use TWAP is $10,000 and the minimum execution time is 5mins while the maximum execution time is 24hrs.

For more info on how to use or learn about the technicalities of this strategy, consult the article- How to Use TWAP Algorithm on Binance Futures

The Third Strategy Trading.

The third Binance Futures strategy trading available to all Binancians trading futures is Volume Participation Algorithmic Trading. Just like the previous strategy, this trading strategy is developed on the principle of trading with algorithms. The algorithms used are calculated based on the trading Volume Participation of the chosen trading pair.

What is Volume Participation Algorithmic Trading?

The Volume Participation (VP) trading algorithm is an opportunistic algorithmic execution strategy that enables the automated execution of larger orders with a specified urgency level. 

The VP strategy is automated to execute large order trades at a pace that approximately matches a portion of the real-time market volume by respecting the targeted volume participation level, hence it is used to quickly take advantage of a swift price movement.

When to use a Volume Participation algorithm?

The Volume Participation algorithm is suitable for an order execution that involves sizable notional orders larger than the available market liquidity while minimizing the impact of the placed order on the market.

How does the Volume Participation algorithm trading strategy work?

Assuming a trader wants to catch a sharp price movement to Buy/Long or Sell/Short quickly before the market price of an asset moves, this strategy is extremely helpful to limit the order market impact while targeting the average market trading price over the execution period.

Here is an Illustration of Volume Participation Algorithm Execution Patterns

For a better understanding of how to use this strategy effectively, consider looking up the article- How to Use Volume Participation Algorithm on Binance

To get the best result from any of these trading strategies you need to be deliberate about using them by learning how to use them, when is the best time to use each of them, the trading pairs they work best with, and what factors you'll need to take into consideration; other factors that must be put into consideration like trading orientation, patience, consistency, continuous adaptability, flexibility, and the application of key learnings, etc.

We have now learned about three (3) trading strategies to opt for when trading on Binance Futures; let us now focus on how to get started with using the Strategy Trading Landing Page on Binance highlighted in a Step-by-Step Guide on how to use it.

How to use the Strategy Trading Landing Page

The Binance Strategy Trading Landing Page provides quick access to a range of automated trading strategies which includes Spot Grid, Futures Grid, TWAP, and VP algorithmic trading bots.

On the Landing page, the Strategy Pool Section shows top Grid Trading Strategies on Binance for Spot and Futures, allowing users to copy trade the same parameters for their trading strategy; allowing them to use the filters to display a specific panel of Grid Trading Strategies, display corresponding ROI, PnL or Popularity, and replicate the corresponding parameters to create a similar Grid Trading Strategy.

How to access the Strategy Trading Landing Page?

Here is a step-by-step guide to access it and set up any trading strategy.

Step1: First you would need to create a verified Binance account by clicking here and then complete the KYC verification process after creating the account.

If you already have a verified account that you currently trade crypto with, then you can skip the first step and proceed to the second below.

Step 2: If you have successfully created your crypto trading account or have a verified trading account, follow these steps below;

From a browser, Go to Binance and click [Trade] - [Strategy Trading] or simply navigate the Strategy Trading Landing Page from the Binance front page from your browser by accessing Binance Futures’ trading interface and clicking [Strategy Trading] - [Overview] or you can use this direct link.

From your Binance APP, simply Go to Home and click Strategy Trading or ale this direct link.

To learn more about how to use or access the Binance Strategy Trading Landing Page, click this link.

Are you scared or optimistic to break new ground by using strategy trading!

It's okay to feel so, and that is why Binance has now integrated a Mock Trading Environment to allow users to practice Futures Trading strategies without risks.

So you can start practicing how to use each of these trading strategies using the Mock Trading environment to give strategy trading a try.

Here is how to access the Mock environment in highlighted simple steps;

Step 1: Go to Home on your Binance APP

Step 2: Click on the Futures icon, below(second to last icon button left)

Step 3: Click on the three-dotted horizontal line icon top right.

Step 4: On the next window interface, Click on the Mock Trading icon, log in to your Binance account, and get started using the test net to start learning and experimenting.

Kindly Note that trading derivative futures assets are volatile products with a high risk of losing money quickly due to price fluctuations, therefore you should always DO YOUR OWN RESEARCH, and never trade or invest funds that you can not afford to lose.

If you enjoyed reading this article and would like to read more about profitable crypto trading techniques, mooning NFT projects, and using Crypto Loans on Binance, hit this direct link to my crypto research archive.

References 

How to use the Strategy Trading Landing Page

What Is Futures Grid Trading

What Is Long/Short Grid Trading

How to Use TWAP Algorithm on Binance Futures

How to Use Volume Participation Algorithm on Binance