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Mode 3: Advanced

What It Does

Advanced mode adds direction-aware requoting and asymmetric depth to the 3-tier structure. When price trends in one direction, the bot only requotes the side that price moved away from — leaving the side with potential fills untouched to capture the spread.

How It Works

  1. 3 tiers with slightly wider thresholds (3/8/15 bps) for more deliberate requoting
  2. When price moves up: only ask-side orders are refreshed (bids stay to potentially fill)
  3. When price moves down: only bid-side orders are refreshed (asks stay to potentially fill)
  4. Asymmetric depth places more liquidity on the side away from current position
  5. Measured requote interval prevents over-trading during fast moves

When to Use

  • Trending markets — Price has a clear directional bias
  • Medium-high volatility — Regular price swings with direction
  • Experienced traders — Understand directional risk and inventory management

Key Settings

SettingDescriptionExample
Inner spreadTightest orders near mid4-8 bps
Level spacingGap between each order level2-4 bps
Order sizeUSD notional per order$100-$500
Number of levelsTotal orders per side4-8

Potential Drawbacks

  • Slower requoting pace — may miss opportunities in very fast markets
  • Direction-aware logic can accumulate position if the trend reverses suddenly
  • More complex behavior — harder to predict what the bot will do in edge cases

Tips

  • Pairs well with the signal engine for directional bias detection
  • Use on markets where you observe consistent trending behavior
  • Monitor position closely during major news events — direction can reverse quickly