The response curve in the Sonar app: linear or exponential, with a strength at each end.
When To Use It
Good For
- Selling into demand and buying into sell-offs
- Trading in proportion to market activity
Watch Out For
- Trading in proportion to market activity
- Quiet markets can mean few executions.
How It Works
- Windows with total volume below Activation Volume are skipped.
- Between Activation Volume and Curve Ends At, strength follows your curve.
- A cap limits the value of any single execution.
Set It Up
1
Open Create Strategy
Pick the chain, choose Buy or Sell, then Expert and Volume Response. Add a name if you like, and press Continue.
2
Pick The Token And Size
Select the token and how much to trade, the source if more than one holds it, and the counter asset: the chain’s native token or a stablecoin.
3
Shape The Response Curve
Linear or exponential. Set the volume range, from where it starts replying to where the curve ends, and the strength at each end.
4
Set Execution Controls
Volume is totalled over a recurring window. Add a minimum price move, and a cap on the largest single trade per window.
5
Add Optional Parameters
Extra parameters, such as limits or a scheduled start. Skip them to run on defaults.
6
Set Strategy
It starts right away, or at your scheduled start.
FAQ
What happens to small trades?
What happens to small trades?
Trades smaller than the start size are skipped.
Can one big trade empty my strategy?
Can one big trade empty my strategy?
No. The per-execution cap limits the largest single reply per window.
How is this different from Volume?
How is this different from Volume?
Volume executes against each incoming order at one fixed strength. Volume Response totals a window of opposing volume and executes once against it, at a strength your curve sets.
Related
Volume
Trade into real market orders at a fixed share.
RSI Oscillator
Sell the spikes and buy the dips in a sideways market.