Ladder Bot Overview
What is the Ladder Bot?
The Ladder Bot is a geometric market making strategy that places multiple tiers of limit orders on both sides of the orderbook. Orders are spaced geometrically (in basis points) from the current price, creating a "ladder" of liquidity.
When the price moves, the bot selectively requotes orders to maintain optimal positioning. Different modes control how aggressively and intelligently this requoting occurs.
How It Works
- Place orders — Multiple limit orders placed at geometric intervals on both bid and ask sides
- Monitor price — Track oracle price movement in basis points
- Requote on threshold — When price moves beyond a configured threshold (in bps), requote affected orders
- Manage inventory — Skew prices to reduce directional exposure when position accumulates
- Repeat — Continuous cycle of placing, monitoring, and requoting
Mode Comparison
| Mode | Tiers | Direction-Aware | Speed | Best For |
|---|---|---|---|---|
| 1: Basic | 2 | No | Standard | Choppy/ranging markets |
| 2: Standard | 3 | No | Standard | General purpose, all conditions |
| 3: Advanced | 3 | Yes | Measured | Trending markets, adaptable |
| 4: Aggressive | 3 | Yes | Fast | Active markets, tight spreads |
| 5: Accumulator | 3 | Yes | Measured | Building directional positions |
Key Concepts
- Tiers — Orders are grouped into tiers (inner, middle, outer). Each tier has its own requote sensitivity.
- Requote threshold (bps) — How many basis points price must move before orders in that tier are refreshed.
- Direction-aware — Only requotes the side that price moved away from, leaving the favorable side to potentially fill.
- Inventory skew — Adjusts prices to encourage reducing accumulated positions.
- Asymmetric depth — Places more liquidity on the side away from current position.