There are various Futures trading bot providers in the market, and in this article, we will be looking at the best 3 of them.
Table of contents
- Summary (TL;DR)
- What is a Futures Contract?
- What is Futures Trading?
- How does Futures Trading work?
- What are Futures Trading bots?
- Best Futures Trading bots
- Pionex Futures Trading Bot
- Bitsgap Futures Trading Bot
- 3Commas Futures Trading Bot
- Best Futures Trading Bot: Conclusion
- Frequently Asked Questions
- 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.
- 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.
- 3Commas offers GRID, DCA, and Options trading bots to its users.
- 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 price 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 towards the money you’ve invested as a beginner. This is where trading bots come in; they automate your trading and execute pre-planned trades.
Best Futures Trading bots
There are various trading bot providers in the market, and below are the best three of all the options you get.
Pionex Futures Trading Bot
What is Pionex?
Pionex is an exchange and a trading bot provider. Their automated bots allow you to execute your trading strategies without staring at the screen 24*7.
The trading bots are entirely free for everyone. To learn more, read the Pionex review.
Pionex offers nine different trading tools, and 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 50% APR and extremely low risk. The bot gains returns by distributing your capital equally in the spot and futures market based on the leverage of your choice.
The Spot Futures arbitrage bot comes with minimum risks. To learn more read, our guide to the Pionex Spot-Futures Arbitrage bot.
GRID bot on Pionex
Pionex offers six different types of GRID trading bots. 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. If you have more than $100,000 at Pionex, you can apply for the Pionex market maker program and enjoy 0% fees.
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 (Money Services Business) License. You can also enable 2FA for an additional layer of security to your Pionex account.
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, the 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.
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.
To learn more read, the crypto trading signals telegram channel.
The platform offers you a 14-day free trial of the trading bots. However, after the free period ends, you need to get a subscription plan. Bitsgap offers three different types of subscription plans to its users. You can observe 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 has the permissions to make withdrawals on your behalf. Bitsgap suggests you use 2FA, and if you go through too many unsuccessful login attempts, your account will lock your account.
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.
GRID trading 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.
Dollar-Cost Averaging bots at 3Commas allow you to invest at preset regular intervals, automatically averaging your buy price.
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 plans you get discounts on these plans. The details of each of these plans are as below:
Is 3commas safe?
3Commas is not clear about their security protocols; however, they store almost all the funds in cold storage. Additionally, the trading bots at 3Commas cannot withdraw any funds from your trading account, as they run using API keys. 3Commas collects users’ trading data and uses it to enhance its trading bots.
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. At the same time, 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
Margin can also be termed as your initial capital to open a leveraged position. Since most traders use leverage while trading in the futures market, the margin is the collateral they provide to borrow additional funds.
To connect Binance with Bitsgap, head over to my exchanges section and click on 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.
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.