What Is the AI Futures Trend Bot and How Does It Work
Part 1 - What is the KuCoin AI Futures Trend?
How does it work?
The KuCoin AI Futures Trend is an automatic trend tracking quantitative trading strategy. It tracks the cryptocurrency's 1-hour period weighted moving average, with golden crosses to buy and dead crosses to sell.
Specifically, it opens long/closes short when the short-term weighted average crosses above the long-term weighted average, and closes long/opens short when the short-term weighted average crosses below the long-term weighted average. This is particularly useful for tracking trends in upward or downward moving markets. The strategy helps users find the best entry and exit points, profiting in a rising or falling market trend.
Who is it suitable for?
The AI Futures Trend is suitable for almost all traders. Especially for traders who don’t have time to watch the market, it can help them monitor the market 24 hours a day while seizing profits from the trending market without having to watch it.
This trading bot is also ideal for traders who may not have a well-established trading system or extensive experience in futures trading. By investing funds in the bot, users can automatically monitor trading signals and execute futures transactions.
What kind of market conditions is it suitable for?
The AI Futures Trend excels in tracking trending market conditions but not be optimal for oscillating market conditions. It effectively identifies opportunities and profits from both uptrends and downtrends. However, caution is advised when the market exhibits range oscillation, as this strategy may lead to losses. Therefore, it is important to carefully assess the prevailing market conditions and refrain from utilizing AI Futures Trend during prolonged periods of market fluctuations.
How to use it effectively
1. Understand the strategy: Understand how AI Futures Trend works before using it.
2. Choose the right market: This strategy works best in trending markets.
3. Choose the right trading pair: Choose mainstream tokens with large trading volumes, such as BTC and ETH.
4. Set a take-profit and stop-loss: Due to the high risk of futures trading, setting a take-profit and stop-loss for this strategy may avoid the risk of liquidation.
5. Monitor the market: Keep an eye on market fluctuations for your chosen token and bot performance.
What’s the risk?
In volatile markets, the strategy may incur losses. Therefore, it's crucial to closely monitor the prevailing market conditions and refrain from employing AI Futures Trend during prolonged periods of market fluctuations.
Part 2 - How To Start AI Futures Trend Bot?
Enter the KuCoin App Home Page, tap Trading Bot.
Select AI-Powered > AI Futures Trend.
Create a bot, select the trading pair, enter the investment amount. You can also set a take profit target and stop loss target in Advanced Settings.
After starting the bot, you can view the order details in Trading Bot > Running Bots.
After tapping Stop Bot, the system will cancel all pending orders placed by this bot and close the position at the best price in the market.
Part 3 - FAQ
Q: Can AI Futures Trend be turned off during operation?
A: Yes, you can manually turn it off the AI Futures Trend at any point.
Q: Will using AI Futures Trend cause losses? If so, how should one respond?
A: Like any trading strategy, AI Futures Trend carries inherent risks. Given its nature as a quantitative futures trading strategy, these risks may be heightened. It's essential to thoroughly understand the strategy's operational principles, implement appropriate risk management practices such as setting take-profit and stop-loss, and vigilantly monitor market conditions.
Q: What market conditions are suitable for the AI Futures Trend ?
Answer: The AI Futures Trend is designed for trending markets, encompassing both uptrends and downtrends.
Q: Does AI Futures Trend support setting take-profit and stop-loss?
A: Yes. The AI Futures Trend support users to set take-profit and stop-loss.