Kelp balanced strategy amount confusion
Kelp balanced strategy amount confusion
Loading saved threads...
JCee · External communityPost link
External question — Stellar Stack Exchange
Author: JCee
Original post: https://stellar.stackexchange.com/questions/5795
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I'm setting up a Kelp
balanced strategy
on StellarX, and so far I got it working and trading, but I'm very confused about the amounts that Kelp bids. It only seems to bid
small amounts
, fractions of XLM. My Account has ample funds, and I've even tried filling half the account with the other token, but I can't get the amounts that are bid any larger.
Is this normal or am I doing something wrong? Which variables of the Balanced strategy govern this, if at all?
Quote
Report
banskt · External communityPost link
External answer — Stellar Stack Exchange
Author: banskt
Original post: https://stellar.stackexchange.com/a/5867
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
In the balanced strategy, the target amount of the bid uses the following formula:
targetAmount = (2 * availableAmount * spread) / (4 + spread)
and then reduce it by 5%. If you have multiple bid levels, then the
availableAmount
changes with increasing levels and the
targetAmount
decreases. The
targetAmount
for the balanced strategy cannot be controlled by any other configuration variable except the
spread
. But, if you increase the spread, then your
targetPrice
will also change.
For more details, see the code
here
.
As far as my understanding: If you want to control the order size, then you have to use the pendulum strategy. In balanced strategy, the mid market rate is obtained as
assetA / assetB
. So, a larger bid size will shift the balance leading to unrealistic bids and asks.
Edit: I downloaded the source code and modified the balanced strategy to include a configuration flag
AMOUNT_MULTIPLIER
to control the amount that Kelp bids. This is
not
suggested as it may lead to unrealistic bids and asks -- leading to significant losses in the market.
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External answer — Stellar Stack Exchange Author: banskt Source score (net votes, not local likes): 0 Original post: https://stellar.stackexchange.com/a/5867 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. In the balanced strategy, the target amount of the bid uses the following formula: targetAmount = (2 * availableAmount * spread) / (4 + spread) and then reduce it by 5%. If you have multiple bid levels, then the availableAmount changes with increasing levels and the targetAmount decreases. The targetAmount for the balanced strategy cannot be controlled by any other configuration variable except the spread . But, if you increase the spread, then your targetPrice will also change. For more details, see the code here . As far as my understanding: If you want to control the order size, then you have to use the pendulum strategy. In balanced strategy, the mid market rate is obtained as assetA / assetB . So, a larger bid size will shift the balance leading to unrealistic bids and asks. Edit: I downloaded the source code and modified the balanced strategy to include a configuration flag AMOUNT_MULTIPLIER to control the amount that Kelp bids. This is not suggested as it may lead to unrealistic bids and asks -- leading to significant losses in the market.
Checking account access…