Iceberg strategy

Published on Jun 17, 2022Updated on Apr 4, 20242 min read

The Iceberg strategy is temporarily not supported under portfolio accounts.

1. What is the Iceberg strategy?

The iceberg strategy is an algorithmic order type allowing users to avoid placing a large order and cause slippage. An iceberg order automatically breaks up users' large order into multiple smaller orders. These orders will be placed in the market according to the latest best bid and ask price as well as the parameters set by the user. When one of the smaller orders has completely filled, or the latest market price has deviated significantly from the price of the current order, the others orders will be executed progressively.

2. Sample Case (BTC/USDT)

A user would like to buy BTC at a price below 20,000 USDT and does not want to increase the cost. He can set an iceberg order

Bot Parameters

Range - Ratio (Price Variance): 0.1%

Price limit: 20,000 USDT

Average amount: 2 BTC

Total amount: 100 BTC

Run the Bot

The system will automatically place an iceberg order. The order price will be the latest buy price*(1-Price variance 0.1%), and the amount of each order will be 50% to 100% of the average amount. Once the order completely filled, a new order will be placed.

When the last market price exceeds the highest buy price of 20,000 USDT, the iceberg order would be temporarily halted. After the price falls back to 20,000 USDT, the iceberg order would be resumed.

When the last market price exceeds 2*(Price variance), the previous order would be canceled, and a new one will be placed.

When the total trading volume equals its total amount, the bot will stop the order and end its operation.