Strategy Methodology
Adaptive Execution
An execution strategy that splits large orders into smaller pieces and adjusts timing and aggressiveness based on real-time market conditions.
Large orders move markets. A single market order for a significant size will walk through the order book, paying progressively worse prices. Adaptive execution breaks the order into slices and adjusts the pacing — faster when liquidity is deep, slower when it is thin — to minimize market impact.
The botwir3 hybrid module combines elements of maker-first and market execution. It starts with limit orders, monitors fill rates, and escalates to market orders if the fill rate falls below a configurable threshold. The gate validates each slice independently against the configured constraints.
Adaptive execution is relevant for positions that are large relative to the order book. For small positions on liquid markets, a single market order is cheaper than the complexity of slicing. The user configures the slice size, the escalation threshold, and the maximum acceptable slippage.
Sources
Used in
◎Adaptive Execution module — builder