Mode 1: Basic
What It Does
Basic mode is the simplest ladder configuration. It uses 2 tiers of orders with symmetric spreads on both sides. All orders requote together when thresholds are hit, making it straightforward and predictable.
How It Works
- Orders are split into 2 tiers: inner (closer to price) and outer (further out)
- When price moves 2+ bps, inner orders are requoted to center around new price
- When price moves 8+ bps, all orders (inner + outer) are requoted
- Both sides (bid and ask) are treated equally — no directional awareness
- Inventory skew is applied to push prices toward reducing exposure
When to Use
- Choppy, ranging markets — Price bouncing between levels with no clear direction
- Low volatility periods — Stable prices with small oscillations
- Getting started — Simplest mode to understand and monitor
Key Settings
| Setting | Description | Example |
|---|---|---|
| Inner spread | Spread for closest orders to mid price | 4-8 bps |
| Outer spread | Spread for furthest orders | 15-30 bps |
| Order size | USD notional per order | $100-$500 |
| Number of levels | Total orders per side | 3-6 |
Potential Drawbacks
- No directional awareness — may get filled on the wrong side in trending markets
- Both sides requote together — misses opportunities to let favorable fills run
- Simpler logic means less adaptability to changing conditions
Tips
- Use wider spreads (10+ bps) on volatile pairs like SOLUSD or HYPEUSD
- Keep order sizes small until you understand fill patterns
- Good for overnight/weekend running when you want minimal surprises