✏️Strategy Configurations
This section will guide users on how to setup and manage the parameters for their market making strategies.
Price Strategy:
Focused directional trading, being more aggressive on either buying or selling, based on a specific threshold preset by the user.
Notional
Refers to the total value of assets to be traded (quote token size)
Threshold
Sets a limit for price deviation before triggering actions (token price)
Refresh Time
Time interval for refreshing order and creating new orders according to ongoing market data
Volume Strategy:
Algorithmic strategies play an active side in contributing to trading activity.
Notional
Determines the total volume of assets to be traded (quote token size)
Threshold
Sets a minimum volume change required to trigger actions (token price)
Refresh Time:
Time interval for refreshing order and creating new orders according to ongoing market data
Randomness (can be used with Volume Strategy):
It allows to adjust actions based on random factors which can be beneficial in capturing trading opportunities and responding dynamically to market changes.
Manual Bid %
Manual price of token on bid side. If token price is $2 and manual bid is 0.8 then manual bid price should be $1.6
Manual Ask %
Manual price of token on ask side. If token price is $2 and manual ask is 1.2 then manual ask price should be $2.4
Best Bid Max %
Best bid maximum percentage from manual bid price. Outcome should be close or far from manual bid according to percentage of best bid max
Best Ask Max %
Best ask maximum percentage from manual ask price. Outcome should be close or far from manual ask according to percentage of best ask max
Order Amount
Specifies the size of order (quote token size)
Orderbook Strategy:
Keeps the market active on order book exchanges by contributing to an equally distributed order book with continuous trading activity.
Bid Spread
Sets the first level spread for placing bid orders
Ask Spread
Sets the first level spread for placing ask orders
Order Amount
Specifies the size of order (base token size)
Order Levels (OL)
Number of orders on each side (buy/sell) levels in the order book considered for trading
Bid OL Spread
Spread for placing bid orders in second order level onward in addition of last order spread
Ask OL Spread
Spread for placing ask orders in second order level onward in addition of last order spread
Bid OL Amount
Order size for bid orders in each order level (base token size) in addition of last order amount
Ask OL Amount
Order size for ask orders in each order level (base token size) in addition of last order amount
Refresh Time
Time interval for refreshing order and creating new orders according to ongoing market data
OL Refresh Time
Time interval for refreshing/canceling order level hold orders
Trades Buffer
Buffer size to fetch recent trade prices. Higher the buffer, the less likelihood to get manipulated by recent trades
Optimal Inventory (can be used with Orderbook Strategy):
Dealing with inventory risk and set inventory re-balancing target.
Min Spread
The minimum spread limit as percentage of the mid price
Refresh Time
It can be interval (1m, 5min, 1h, 1d) or in seconds (60, 300, 3600, 86400) to fetch market data and update inventory skew
Gamma
Risk factor, 0.01 for risk neutral, 0.5 for risk averse. Fail safe to 0.5
Volatility Buffer Size
Number of ticks that will be stored to calculate volatility
Kappa
Order book depth factor
Trading Intensity Buffer
Number of ticks that will be stored to calculate order book liquidity
Inventory Target Base %
Set target base asset in percentage to keep in inventory
Debug (Optimal Inventory)
Enable/disable debugging for optimal inventory to show more/less logs
The strategy configuration of LayBot allows users to define crucial parameters for market making. By carefully setting the trading pair, spread, order size, time intervals, price fluctuation range and risk management levels, users will be able to tailor the bots behavior to align with their specific trading girls and risk tolerance. This ensures a robust and adaptive market making strategy.
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