Algorithms – Smart Order
Smart Order Strategy
Smart Order 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. Smart Order is an algo that works well to get in or out of crypto positions quickly.
How to place a Volven Smart Order strategy
- From the Trading view:
- Choose a symbol
- Swipe right to “Buy” and left to “Sell”, push the strategy icon.
- Inside the Strategy Panel, fill in your desired
- Size. Default setting 10% of your holdings
- Limit Price – (Optional, price limit for when strategy will
not send new orders) Price Limit defines the maximum price you would like to buy at or at the
minimum price you would like to sell at. This is very useful in crypto trading where volatility
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.
- Push “Launch” to start the strategy
Let’s explain a SELL example with the following parameters:
Symbol: BTC/USDT and last price is currently 30 000 USDT
Size: 100% of your BTC holding
Price Limit: 29 980
Since Price Limit is set to 29 980, the Smart Order will not sell below his Price Limit
Since Iceberg is set to 10%, the Smart Order will send 10 orders for 10% each.
- The Smart Order places the first sell order 10% of your BTC holding (Iceberg) at the best ask price.
- The market moves down, and best ask is now 29 980. Since your price limit is set to 29 980, the Smart Order will maintain 29 980 as its lowing selling price and place a new order as this minimum price.
- Whenever an order is filles, the Smart Order will send the next iceberg order until it 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.