> For the complete documentation index, see [llms.txt](https://docs.tread.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tread.fi/creating-and-submitting-orders/strategies/time-constant.md).

# Time Constant

<figure><img src="/files/suutRJdLObol7SG943Fs" alt=""><figcaption><p>Execution with Time Constant</p></figcaption></figure>

The **Time Constant** strategy is designed for traders who need execution at a steady, predictable pace over a fixed duration. It follows a [**TWAP (Time Weighted Average Price) trajectory**](/creating-and-submitting-orders/advanced-settings/trajectories/twap.md), ensuring trades occur evenly across the order’s timeframe.

**How It Works**

* Users specify a **duration**, setting the total execution period.
* The engine prioritizes **maker execution** when possible but will switch to **taker execution** if necessary to maintain the schedule.
* Trades execute at a **consistent rate**, independent of market conditions.
* Execution is evenly distributed over time, maintaining a steady flow.

**When to Use This Strategy**

* **Shorter-Duration Orders** – Best for trades requiring execution within a **limited timeframe**.
* **TWAP Benchmarking** – Useful when the goal is to **match the TWAP price** over a set period.
* **Fixed Duration Execution** – Ensures a **steady execution pace** without adapting to market fluctuations.

**Potential Drawbacks**

* **Easily Detectable** – Other market participants may recognize and react to the strategy.
* **Lacks Market Awareness** – Trades at a **fixed rate** without adjusting to liquidity or volatility changes.
* **Less Efficient During Off-Hours** – Executes the same volume at **low-liquidity times (e.g., 3 AM) and high-liquidity times (e.g., 3 PM)**, potentially missing optimal trading windows.

This strategy is ideal for traders who require **consistent execution** and **TWAP benchmarking**, but it may not be optimal for those looking to adapt to real-time market conditions.

#### **Time Constant Configurations**

| [Trajectory](/creating-and-submitting-orders/advanced-settings/trajectories.md)               | [TWAP](/creating-and-submitting-orders/advanced-settings/trajectories/twap.md) |
| --------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------ |
| [Passiveness](/creating-and-submitting-orders/advanced-settings/passiveness.md)               | 0.02                                                                           |
| [Discretion](/creating-and-submitting-orders/advanced-settings/discretion.md)                 | 0.08                                                                           |
| [Alpha Tilt](/creating-and-submitting-orders/advanced-settings/alpha-tilt.md)                 | 0                                                                              |
| [Max OTC Percentage](/creating-and-submitting-orders/advanced-settings/max-otc-percentage.md) | 0%                                                                             |
| [Passive Only](/creating-and-submitting-orders/advanced-settings/passive-only.md)             | Disabled                                                                       |
| [Active Limit](/creating-and-submitting-orders/advanced-settings/active-limit.md)             | Disabled                                                                       |
| [Reduce Only](/creating-and-submitting-orders/advanced-settings/reduce-only.md)               | Disabled                                                                       |
| [Strict Duration](/creating-and-submitting-orders/advanced-settings/strict-duration.md)       | Disabled                                                                       |

<br>