Trajectories

In tread.fi, trajectories define how orders are executed over time, shaping how trades interact with market conditions. Each trajectory provides a foundational execution approach, and strategies are built on top of these trajectories, applying specific configurations to achieve different trading objectives.

The Four Primary Execution Trajectories

1. VWAP (Volume Weighted Average Price)

   • Adjusts execution based on market volume, ensuring orders scale with liquidity.

   • Suitable for traders aiming to minimize market impact while maintaining a presence in the order flow.

2. TWAP (Time Weighted Average Price)

   • Executes orders at a fixed, consistent rate over time, ignoring market volume fluctuations.

   • Useful for traders seeking steady execution with a predictable trading footprint.

3. Target Time

   • Concentrates execution around a specific future event, ensuring the bulk of the trade occurs near the designated time.

   • Ideal for event-driven trading strategies that require precise timing.

Choosing the Right Trajectory

Each trajectory serves a different purpose, and selecting the right one depends on trading objectives, market conditions, and risk tolerance. Strategies in tread.fi leverage these trajectories, applying advanced configurations to fine-tune execution behavior.