The grace feature will help you miss fewer signals by allowing you to define a percentage by which to extend the first entry price range, making it more likely that your entry will be filled. Let's dive in and see how it works in detail.
For a video tutorial about the Grace feature, watch the following:
To modify the First Entry Grace parameter, visit the following path in the Telegram bot:
Main Menu > Bot Configuration > Trading > client name > General > First Entry Grace Percentage
What is it trying to solve?
When trading automatically, you might experience a couple of cases where you might "miss" signals which basically means that the entry targets in your automated trade remain unfilled even though the signal entry target was reached. A couple of cases where you might miss a signal (assuming long signals) are:
- The signal was created when the symbol price was below the first entry price, but immediately as it was published many users entered the signal causing the price to increase again until it is above the first entry price. In that case, it's possible that the price increased before some users were able to place the orders in the exchange and therefore they might miss the signal if the price does not fall back into the entry range.
- The signal was opened when the price was outside the entry price range and all the users that entered the signal end up creating a "buy-wall" which causes the price to hover around the first entry price but never cross it. In that case, many users have entry orders at the same price and some might end up getting filled while others might be left unfilled before the price starts to increase again and move away from the entry price.
Both cases are especially common in cases where the signal is posted on a symbol with low-liquidity where a relatively small trading volume can significantly affect price movement (and create walls in the order book).
The purpose of the Grace feature is to help you avoid cases like the ones mentioned above where the signal entry price is reached (or crossed) but your trade orders might remain unfilled.
How does it work?
When your grace parameter is set, Cornix will extend the first entry target price by the defined grace percentage but only if the signal the trade is based on already entered the entry price range (that is, the price of the symbol reached or crossed the first entry target price).
When the grace parameter is set in your trading configuration, as soon as the first signal entry target price is reached, Cornix will immediately activate the grace option in the trade that was created for you automatically. When the grace is activated, Cornix will iteratively increase the first trade entry target price by small intervals until the order is filled, or until the maximum price as defined by the grace value is reached (that maximum price will be equal to the original entry price + the grace percentage). After reaching that maximum order price including the grace, Cornix will stop updating the order price and the order will remain open in the exchange until it is filled or canceled (just like any other regular order).
In effect, using the grace feature will allow you to extend the potential entry price range making it less likely you will miss signals that reached at least one entry target.
If this doesn't make sense yet, please continue to go over the example below.
Please note that as explained above, Cornix will only apply the grace percentage to the trade's first entry once at least one entry target is reached in the signal. This means that the grace will not help you in cases where the signal price never reached the entry price range.
Let's take as an example the following long signal on ADA/BTC:
Figure 1: Example of signal
Let's assume the signal was created when the price of ADA/BTC was 0.00002200. In this case, as long as the price stays above the first entry price (0.00002000) the grace parameter does not take effect and will not modify the trade in any way.
Now, let's assume the price of ADA/BTC decreases until it reaches exactly the first entry price at 0.00002000 before going up again and reaching the first Take-Profit target at 0.00003000. In this case, let's consider what would happen when the grace parameter is set and when it's not set in your trading configuration:
- Grace parameter is not set - In this case, your trade will have a simple limit order placed at the first entry target price of 0.00002000. Since the price dropped exactly to the first entry price before going up again, it's very possible that your order will remain unfilled depending on its location in the order book.
- Grace parameter is set to 2% - In this case, the trade will also be created with a regular limit order, however when the signal entry price is reached Cornix will activate the grace if the order is not yet filled. Since the grace is set, Cornix will continuously attempt to increase the order price little by little until the order is filled or the maximum price including the grace percentage is reached. In this case, since the grace is set to 2% the maximum order price Cornix will use is 0.00002040, which is 2% above the original price (1.02 * 0.00002000 = 0.00002040).
Please note that both examples assumed the trades were created without trailing entry. When trailing entry is used, the grace parameter will be ignored and will not affect the trade behavior.