Introduction to Futures Combo Bot

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2024-06-12 11:10:28

The Futures Combo Bot is an innovative tool designed to streamline your futures trading experience. It enables users to construct portfolios that comprise multiple futures contracts, and automatically rebalance positions to maintain preset ratios of various contracts despite market movements. Futures Combo ensures that the portfolio aligns with the user’s strategy, providing greater flexibility in executing users’ strategies in various market conditions.

Key Advantages:

Build and Manage Diversified Portfolios: Create portfolios combining multiple futures contracts with customizable allocation ratios. Each portfolio may consist of two (2) to 10 contracts.
Effortless Rebalancing: Maintain your desired portfolio composition through automatic rebalancing, which happens when preset thresholds are met or during specific time intervals.
Flexibility for Various Strategies: Adapt your trading approach to different market conditions with a wide range of parameters, including contract selections, position directions, leverage, and rebalancing settings.
AI-powered Optimization (Optional): Leverage AI strategies for optimized trading decisions to enhance your portfolio performance.

How Does Futures Combo Work?

Futures Combo allows users to create a portfolio consisting of two (2) to 10 contracts. Users can manually set the parameters or rely on AI strategies to execute their trading decisions. Futures Combo employs a rebalancing mechanism through a preset ratio trigger and/or fixed time intervals to maintain the user’s preset allocation ratio.

Example 1: Rebalancing Triggered by Percentage Deviation

Allocation: BTCUSDT (Long, 50%), ETHUSDT (Long, 40%), SOLUSDT (Long, 10%)
Leverage: 1x
Rebalance Conditions: 10% Deviation
Investment: 10,000 USDT
Position Margin Ratio: 60% (Determined and adjusted by the system)

Contract	BTCUSDT	ETHUSDT	SOLUSDT
Direction	Long	Long	Long
Target Allocation	50%	40%	10%
Initial Position Value (USDT)	3,000	2,400	600
Current Position Value (USDT)	2,300	2,800	900
Current Proportion	38.3%	46.7%	15%
Trade Type	Open Long	Close Long	Close Long
Order Amount (USDT)	700	400	300

When the proportion of any contract deviates from the target allocation by more than 10%, the rebalancing mechanism will automatically adjust the proportion to align with the preset target. For example, if BTCUSDT breaks above 60% or when ETHUSDT falls below 30%, the system will rebalance the allocation to achieve the target allocation percentage of BTCUSDT (50%), ETHUSDT (40%), and SOLUSDT (10%).

The precision of the percentage deviation is set at 1%, and users can select from the range between 1% and 50% (inclusive) to allocate assets in their portfolio.

Example 2: Rebalancing Triggered by Fixed Time Interval

Allocation: BTCUSDT (Long, 50%), ETHUSDT (Long, 40%), SOLUSDT (Long, 10%)
Leverage: 1x
Rebalance Conditions: 2 hours
Investment: 10,000 USDT
Position Margin Ratio: 60% (Determined and adjusted by the system)

Contract	BTCUSDT	ETHUSDT	SOLUSDT
Direction	Long	Long	Long
Target Allocation	50%	40%	10%
Position Value at T	3,000	2,400	600
Position Value at T+2H	3,200	2,400	400
Proportion at T+2H	53.3%	40%	6.7%
Trade Type	Close Long	N/A	Open Long
Order Amount (USDT)	200	N/A	200

The system checks the proportion of each contract at the preset time interval and automatically rebalances the portfolio to align with the initial allocation.

Users can select any value between 30 minutes and 28 days as their preferred time interval.

What Happens When the Min. Order Size Is Not Met During Rebalancing?

If the target position quantity of any contract in the trader’s portfolio, or the adjustment quantity falls below the minimum order size during rebalancing, the system will take the following actions:

Scenario 1: Target Below the Min. Order Quantity

Min. Order Qty	1 XYZ
Current Position Qty	5 XYZ
Target Position Value	0.2 XYZ (-4.8 XYZ)
Actual Position Value After Adjustment	1 XYZ

If the target amount is less than the minimum order quantity (i.e., target 0.2 XYZ, minimum order quantity is 1 XYZ), the bot will adjust to the minimum order quantity (in this case, 1 XYZ).

Scenario 2: Adjustment lower than the Min. Order Quantity

Min. Order Qty	1 XYZ
Current Position Qty	5 XYZ
Target Position Value	4.2 XYZ (-0.8 XYZ)
Actual Position Value After Adjustment	5 XYZ (No adjustment)

If the difference is smaller than the minimum order size (i.e., target 4.2 XYZ, minimum is 1 XYZ), the bot won't make any adjustments because it can't place such a small order.

AI Strategies

Futures Combo leverages AI technology to recommend trading strategies to users. There are six (6) AI-recommended strategies for each category. These categories cater to various asset classes, including large caps, memecoins, and Metaverse tokens, among other trending projects and theses in the industry. The AI-recommended strategies span across three (3) categories: high-yield, stable, and high-frequency, with two strategies under each category. This empowers users to effortlessly build portfolios that align with their trading preferences.

Fee Structure

The fee structure for Derivatives trading on Bybit applies to Futures Combo. A funding fee will be received or paid at the funding fee interval for the contract traded. For more information on the funding fee interval, please visit here.

Notes

All Futures Combo Bots run in Cross Margin mode under the Unified Trading Account (UTA). The liquidation process follows the UTA procedures. For further details, please visit this page.
Please note that all positions under your Futures Combo Bot will be terminated once liquidation occurs.
If a certain contract in your Futures Combo Bot is delisted, the entire bot will be automatically closed.

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