Directional Bias

Directional bias control allows you to influence the timing and distribution of your buy and sell orders based on your market outlook.

How Directional Bias Works

• Range: -1 to +1 (neutral at 0)

• Positive Bias (+1): Favors long positions by front-loading buy orders and back-loading sell orders

• Negative Bias (-1): Favors short positions by front-loading sell orders and back-loading buy orders

• Neutral (0): Equal timing distribution for both buy and sell orders

Additional Notes on Directional Bias

• Alpha Tilt Adjustment: Directional bias maps linearly to alpha tilt adjustments (±1 → ±0.2 alpha tilt)

• Buy Orders: Positive bias adds positive alpha tilt (front-loads), negative bias adds negative alpha tilt (back-loads)

• Sell Orders: Positive bias adds negative alpha tilt (back-loads), negative bias adds positive alpha tilt (front-loads)

• Risk Management: Extreme bias values (±1) require up to 20% additional margin to account for increased directional exposure

Use Cases

• Bullish Outlook: Set positive bias to capture upward price movements more aggressively

• Bearish Outlook: Set negative bias to benefit from downward price movements

• Market Neutral: Keep at 0 for balanced market making without directional exposure