What Is Automated Order Execution in Crypto Hedge Bot Development ?
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Order execution automation deals with the process by which the hedge bot implements a strategy decision into live trading on the exchange, thus bridging the gap between calculated and executed trade. This process needs to be constant and instantaneous, as hedging strategies imply multiple positions being placed within a short period of time to achieve the desired results.
The most of the engineering effort is put into the process occurring in between of a signal and filling of a trade. Order routing, rejection handling and partial execution management affect the ability of a hedge to maintain the correct structure once the position is open. Additional factors like cross-exchange execution add diversity, because each exchange will have unique latency, depth of order books and API rate limits.
And this is where the major part of engineering in Crypto Hedge Bot Development lies. The reliability of the execution can have a stronger impact on performance compared to the trading strategy. Even the most efficient hedging model developed during thorough trading bot development will perform poorly in the market if the execution process is not properly managed.
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