Execution Parameters and Backend Intelligence

Quote's algorithmic execution suite is designed for trading optimization by managing market impact, capturing passive liquidity and providing protection against predatory market participants.

When trading on the Quote UI, traders submit an order similar to a traditional perp-dex, with the only difference being two additional data points: urgency and strictness. On the backend, the data input refers to a suite of algorithmic strategies.

Urgency

The Urgency parameter determines how aggressively the system interacts with market liquidity. It dictates the size of orders posted to the book and the speed at which the system seeks a fill.

Strictness (Bounds Control)

The Strictness (or Bounds Control) parameter defines how much the execution is allowed to deviate from the indicated limit price or target participation rate.

Backend intelligence

The data provided in the order submission form triggers various background strategies designed to improve execution quality:

• Adaptive Volume Tracking The system monitors real-time market volume and historical moving averages to blend orders into the book and minimize information leakage

• Dynamic Order Placement This is a passive-only strategy that monitors and tracks bids (for buy orders) or offers (for sell orders) across multiple venues and various price levels within the order books

• Enhanced Fill Probability By distributing orders across several price layers simultaneously, the strategy increases the likelihood of execution based on the specific urgency requirements

• Segmented Execution Large parent orders are partitioned into smaller, user-defined clip which are then executed at precise, recurring time intervals

• Urgency-Driven Sizing The algorithms utilize a user-defined Urgency parameter to calculate the optimal volume to post at each depth level of the order book

• Anti-Gaming Protection All executions utilize models to randomize order schedules and sizes, protecting your positions from predatory market participants

• Smart Overfill Protection The system monitors all child orders in real-time to prevent over-execution, even during venue disconnections or technical timeouts

• Automated Error Handling To ensure execution consistency, the algorithms automatically regenerate child orders if a clip encounters errors or fails to fill completely within its allotted interval

• Non-Accelerated Pacing If market conditions move outside your limit price, the strategy remains disciplined; it will not increase aggressiveness to catch up for lost time, ensuring you only trade at your desired levels

• Order Randomization Users can apply a Variance setting to randomize clip sizes, helping to blend execution activity into the general market volume

More information around the Security and Advanced Features of the Quote Algorithmic Execution suite can be found here.