Adaptive first order

The "First Order" function in the "Hurricane" futures grid-bot is more important than it seems at first glance. In the following, we will explain how it works and how best to use it in different situations. A complete understanding of how it works is critical to effective bot trading.

The "First Order" feature is available for "long only" and "short only" strategies. When choosing the "No strategy" direction (when the bot places short orders above the current price and long orders below the current price), the "first order" is not available.

The first order is the first opening limit order in the grid. For long bots this is a buy order placed below the current price, for short bots it is a sell order placed above the current price. It is very important to correctly specify the size of the first order. Usually, its size should be several times larger than the standard order, so that the bot does not stand idle after the first trade if the current price starts to improve.

The size of the first order depends on how good your entry point is and what is the distance between orders. For example, if you place the first order at the bottom of the coin’s daily price range, and the daily volatility is 9%, the distance between orders is 0.3%, then the first order can be sold by 30 orders (if the price reaches the upper limit of the daily range), or by 5 orders ( if the price reaches the middle of the daily range, which is safer), or by 10 orders (if the price goes through a third of the daily range). Thus, in this case, the first order can be 10-30 times larger than the standard one: for example, the standard order is $10 and the first order is $100-300 (the smaller the first order, the lower the risks and potential income). If you tick the "market" setting, then when you first open a position, the first order will be bought at the market using a market order.

Important: The first order is placed not only before the first opening of a position, but also after it is opened (if the position size has become less than the first order), but its size is automatically reduced so that the sum of the current position and the first order being placed is equal to the full size of the first order specified in the bot settings. For example, if the size of the first order in the settings is 30 USDT, and the current position size is 10, then the first opening order in the amount of 20 USDT will be placed next to the current price.

Therefore, we do not recommend using a large first order if you do not limit the price of placing it in any way in the presence of a position. If you use the "Entry price limits" and "First order" functions, it is necessary to include in "Auto-detect price range" filter the "do not limit when position is more than" function in the amount of 30% to 70% of the size of the first order (If you do not enable this function, then in the case of a long trade at a level worse than the average entry price and the subsequent complete closing of the position, the margin balance may decrease compared to the initial margin balance).

The "Automatic size of the first order" function is made so that when using the "Automatically detect price range" filter (trading by levels), the system can automatically assign the size of the first order so that it is filled when the upper limit of the daily range is reached. We recommend that you enter the size of the first order manually, taking into account your risk and money management, as well as the algorithm used.