Futubull Team

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New strategy trading feature now live! Executes automatically 24/7 to help you buy low, sell high, and capture market volatility

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While you're still staying up all night tracking the market and waiting for the best entry point, another group of investors has already achieved 24-hour automated deployment through the Futubull App's intelligent strategy trading feature!

Upgrade from manual order placement to automated strategy deployment, capturing market opportunities 24/7.

🔍How to find strategy trading:

1. Open the Futubull APP and click 'Discover'.

2. Click 'Strategy Trading' to enter the page and set your trading strategy.

1. Grid trading strategy: A 'Day Trade wonder tool' for volatile markets.

Facing fluctuating markets, are you still manually selling high and buying low? The grid strategy automatically helps you 'buy low and sell high' through the system, continuously profiting from price movements. Place orders on your phone, saving time and effort.

💡What is the grid strategy? What are its advantages?

– Strategy principle: Within the set price range, multiple grids are automatically divided. Buy when the price drops one grid and sell when it rises one grid, capturing profits from every fluctuation like a fishing net.

– Core Advantages:

✅24/7 automatic spread earning: Never miss any trading opportunity, capture fluctuations for low buying and high selling around the clock.

✅Strict discipline execution: Eliminate emotional operations like 'chasing highs and dumping lows,' making profit-taking and stop-loss more decisive.

✅Zero barrier, easy to get started: 1-Click self-service activation, directly select mature strategies on your mobile phone.

– Suitable for:

Range-bound market or oscillating upward trend.

Assets with relatively regular volatility.

Investors who hope to accumulate returns gradually through high-frequency trading.

⬆️Futu now supports two types of grid modes: Benchmark Price Grid and Range Network Strategy

1. Base Price Grid:

– Centered around a benchmark price, grids are generated by expanding upward and downward based on set step sizes or proportions.

2. Range Grid:

– A specified number of grids are generated between the set upper and lower price limits.

*The price mode supports two types of pricing models: equal price difference and equal ratio.

Equal price difference: The price difference between each grid is fixed.

Equal ratio: The price ratio between adjacent grids is fixed.

📣 Practical examples of grid strategy.

So, how do we use the grid strategy? Here, we will use NVIDIA (NVDA) as an example to simulate how to operate the price difference model in a base price grid strategy.

For more strategy setup interpretations, please check the feature entry.

We set a strategy: NVIDIA's initial benchmark price is $180, down $2 Buy when it rises, $4 Sell; number of grids 3, order quantity per trade 10 shares , the operation method and live execution logic are as follows:

The design images displayed on the screen are for illustrative purposes only and do not constitute any investment advice or guarantee.

When the strategy starts at NVIDIA’s stock price of $180, the system will execute a passive accumulation logic of 'buying on dips and selling on rallies'It won’t directly buy the first trade at $180.Based on the parameters, the system will automatically calculate the trigger price points for three low-price buy orders and execute limit orders once the prices are hit:

– First buy order trigger price: $178 (10 shares)

– Second buy order trigger price: $176 (10 shares)

– Third buy order trigger price: $174 (10 shares)

*At this point, the position is 0 shares, and the account needs to reserve a maximum defensive principal of USD 5,280.

⏳Market scenario analysis:

1. One-sided upward market trend --- missed opportunity

– Trend: After the strategy was activated, NVIDIA's stock price continued to rise from $180.

– Result: The stock price has never retraced to touch $178,All three buy orders were unable to be executed.The strategy remained entirely in cash, with a capital utilization rate of 0. Although there was no loss, it completely missed out on the gains from the one-sided upward market.

2. Falling then rising market --- Volatility arbitrage

Falling phase:

- When the grid strategy begins, a limit buy order will be placed at $178.

- Once that buy order is triggered and executed, the system will use $178 as the new benchmark, immediately placing a limit sell order at $182 above and another relay buy order below at $176.

When the price continues to drop unilaterally and triggers the execution of a buy order at $176, it will automatically execute the pending order based on the latest benchmark price. A limit sell order will be placed at $180 above, while a final relay buy order will be placed at $174 below.

Rising phase:

- When the price rebounds and the sell order at $180 is triggered and executed, the latest transaction price of $180 becomes the new benchmark price. At this point, the unexecuted $174 buy order below will be canceled.

– Simultaneously reset the new benchmark at $180, place a limit sell order at $184, and place a follow-up buy order at $178.

3. One-sided plunge market --- risk management

– Trend:Extreme decline occurs, stock price breaks through all grids and plunges below $174.

– Result: The system executes all three buy orders placed at $178, $176, and $174, reaching the maximum position limit of 30 shares. At this point, even if the share price continues to drop to $170, the system will pause placing orders to stop losses.

To guard against risks in one-sided plunge markets, consider configuring the 'Advanced Settings':

– Strategy Maximum Position: This parameter determines the maximum amount of capital the strategy can use to purchase stocks, preventing the system from over-ordering in extreme market conditions.

– Position Stop-Loss Condition:This parameter triggers an automatic market price liquidation during trading hours when overall position loss reaches a set percentage (x%).

Note: This phase of support only allows for grid trading (i.e., initial positions can only be opened by buying on price declines; holding related short positions is not allowed). Currently, only two modes are provided: Benchmark Price Grid and Range Grid.

✅Backtesting case demonstration:

1. This case study is for demonstration purposes only. Design images displayed on the screen are for illustrative purposes and do not constitute any investment strategy recommendation.

2. Historical backtesting returns are for reference only and do not represent or guarantee future actual returns.

2. Martingale Strategy: Advanced Operations Using the 'Cost Averaging Method'

🔍What is the Martingale Strategy? What are its advantages?

Strategy Logic:The Martingale Strategy is an automated trading method involving 'dynamic position sizing.' When you favor a particular asset but it experiences short-term fluctuations, this strategy will automatically increase the purchase amount at set multiples as prices fall, thereby lowering the average holding cost. As long as there's a significant rebound in price, there's an opportunity to quickly break even or profit. It works well in volatile markets with short-term rebounds or pullbacks.

You can think of it as automating the traditional 'Dollar-Cost Averaging (DCA)' method while adding a 'buy-the-dip' concept, allowing accumulation of holdings at lower prices during volatile market conditions.

Core Advantages:

✅Quickly Dilute Costs: Through dynamic position increases on downturns, effectively reducing the overall holding cost.

✅ Suitable for long-term optimistic assets: By entering the market in batches, the pressure of timing the market is reduced

Applicable scenario:

- Volatile market or medium to long-term upward fluctuation (such as U-shaped rebound)

- High-quality assets with a positive long-term outlook (such as large-cap tech stocks, index ETFs)

- Suitable for investors with sufficient capital and high risk tolerance for long-term investment, or experienced traders. If you believe that an asset will trend upwards in the long term but has significant short-term volatility, this strategy helps achieve 'winning with more capital,' especially performing well in upward fluctuations

📣 Practical case study of the Martingale strategy

How to use the Martingale strategy? Here, we will still use NVIDIA (NVDA) as a case study to simulate how the price differential model of the Martingale strategy works

We set up a strategy:

– Trigger price: $200,

– Price differential increase: Add positions every $2 USD drop

– Single-period profit target: +5.0%

– Initial position opening amount: $500 USD

– Each additional position amount: $500 USD

– Maximum number of additional position orders: 3 times

If the strategy is triggered and NVIDIA's stock price continues to fall, the following phased position building and profit-taking reset process will be executed:

When NVIDIA's stock price reaches $200, an automatic market order of $500 USD will be placed, calculated based on the current market price to purchase the corresponding number of shares and establish a foundational position.

– DCA #1: When the stock price falls $2 from the initial purchase price to $198 ($200 - $2), invest $500 USD, calculate the corresponding number of shares based on the current market price, and execute a market order.

– DCA #2: When the stock price falls another $2 to $196, invest $500 USD, calculate the corresponding number of shares based on the current market price, and execute a market order.

– DCA #3: If the stock price continues to fall $2 to $194, invest another $500 USD, calculate the corresponding number of shares based on the current market price, and execute a market order.

After the strategy completes position building (or during any of the above stages), if the holding profit/loss ratio (based on average cost price) is >= 5%, the strategy will close the position for profit-taking and reset the opening price for each layer as well as the number of layers opened.

Additionally, if you want to increase the scale of additional positions, you can set up multiple price or multiple amount scaling in advanced settings. Note that increasing the scale will affect the average holding price of the assets traded and the overall investment style.

Setting Example：

Assuming the DCA (Dollar-Cost Averaging) amount is set to $500, with a multiplier of 2, the subsequent DCA amounts will be as follows:

DCA #1 (1st DCA): $1,000 USD ($500 × 2)

DCA #2 (2nd DCA): $2,000 USD ($1,000 × 2)

DCA #3 (3rd DCA): $4,000 USD ($2,000 × 2)

✅Backtesting case demonstration:

1. This case study is for demonstration purposes only. Design images displayed on the screen are for illustrative purposes and do not constitute any investment strategy recommendation.

2. Historical backtesting returns are for reference only and do not represent or guarantee future actual returns.

Interactive Rewards

Share your experience or suggestions on using the strategy trading feature in the comments section (screenshots are welcome)! Help us improve the product experience.

Comments with at least 50 words will receive 66 points! Additionally, we will select two thoughtful fellows to award 188 points and a Futu money bank collectible!

🚀 Start your smart strategy trading journey now and bring professional trading capabilities within reach!

⚠️Important Risk Warning：

Grid trading strategies may fail to achieve expected returns in one-way market conditions and could even lead to losses. In a one-way upward market, the strategy might sell positions too early, causing investors to miss out on subsequent significant gains; whereas, in a one-way downward market, the continuous buying mechanism may deplete funds prematurely or result in substantial paper losses for the portfolio.

The core risk of the Martingale strategy lies in its extremely high demand for liquid capital. In a market scenario where asset prices continuously decline in one direction, the doubling-down mechanism may expose investors to severe liquidity pressure, potentially forcing them to close positions due to capital exhaustion. This strategy is strictly prohibited for products with liquidation risks (value going to zero) or high leverage. Investors must reserve ample liquid funds to meet ongoing capital demands and carefully select assets with long-term investment value to prevent uncontrolled losses.

Futubull is an all-in-one financial investment and trading platform, with securities services provided by Futu Securities International (Hong Kong) Limited. This content does not constitute any offer, solicitation, recommendation, opinion, or any guarantee regarding any securities, financial products, or tools.

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