Algorithms – Follower

Follower Strategy

Follower is a dynamic crypto strategy that sends a limit order at the best bid or ask price along with the market. The
strategy will follow the market until it is filled, modified, canceled, or limit is reached. The user can set a
parameter to how often the algo should update the order. Follower order is an algo that works well to get in or out of
crypto positions quickly.

How to place a Volven Follower strategy

  1. From the Ticker view:
    1. Select FO
    2. Click “Buy” or “Sell”
  2. Inside the Strategy Panel, fill in your desired
    1. Size
    2. IcebergOptional
      1. Iceberg splits your order into multiple orders, executing one after another. This hides the
        total size of your order for the rest of the market, just like an iceberg where most of the body
        is hidden beneath the surface.
    3. Price LimitOptional
      1. Price Limit defines the maximum price you would like to buy at or the minimum price you would
        like to sell at. This is very useful in crypto trading, where volatility is high.

      Let’s explain a SELL example with the following parameters:

      Symbol: BTC/USDT and last price is currently 20 000 USDT

      Size: 100% of your BTC holding

      Iceberg: 10%

      Price Limit: 19 990

      Since Iceberg is set to 10%, the follower will send 10 orders for 10% each

      Since Price Limit is 19 990 the follower will not sell below this Price Limit.

      1. Follower places the first limit sell order for 10% of your BTC holding (iceberg) at the best ask.
      2. The market moves down, and the new best ask is now 19 980.
        1. Since your Price Limit is set to 19 990, the follower will maintain 19 990 as its lowest selling price
          and place a new order at this minimum price.
      3. Whenever an order is filled, the follower will send the next iceberg order until the follower is fully filled.

      Note: Although the base intention of the algo is to get a passive fill, there is no guarantee as the market is
      fast-moving; however, over time, the passive fill rate is likely to be very high.