Use Cases and Best Practices

Use Cases

Dollar Cost Averaging (DCA)

Buy Strategy: Distribute buy orders below current market price

• Range: -2% to -0.5%

• Benefit: Systematic accumulation during price declines

Sell Strategy: Distribute sell orders above current market price

• Range: +0.5% to +2%

• Benefit: Gradual profit-taking during price rallies

Liquidity Provision

Market Making: Create symmetric order grids around current price

• Buy range: -1% to -0.1%

• Sell range: +0.1% to +1%

• Benefit: Capture bid-ask spreads and provide market liquidity

Volatility Capture

Wide Range Strategy: Place orders across a broader price range

• Range: -5% to +5%

• Benefit: Capture significant price movements in either direction\

• Liquidity Consideration: Ensure sufficient liquidity exists at your target price levels

• Exchange Selection: Consider exchange-specific order book depth and fees

• Timing: Avoid placing during high volatility periods unless intentional

Best Practices

Parameter Selection

• Order Count: 5-20 orders typically provide good granularity without over-complication

• Price Range: Consider market volatility and your risk tolerance

• Skew Settings: Use positive price skew for trending markets, negative for mean reversion

Risk Management

• Position Sizing: Ensure total quantity aligns with your risk management rules

• Range Width: Wider ranges capture more movement but require larger capital allocation

• Monitoring: Regularly review and adjust parameters based on market conditions

Performance Optimization

• Liquidity Consideration: Ensure sufficient liquidity exists at your target price levels

• Exchange Selection: Consider exchange-specific order book depth and fees

• Timing: Avoid placing during high volatility periods unless intentional