Trading Modes

The Trading Executor is the component that executes trades based on identified opportunities.

Execution Modes

Single-Direct

LIVE

Trigger: Based on funding rate differential

When to Use

• When funding rate spread is already significant
• User wants immediate entry without waiting for price

Flow

1. User selects opportunity from dashboard
2. System validates funding rate spread
3. IMMEDIATELY open hedge positions:
   • Long position on exchange A
   • Short position on exchange B
4. Monitor positions
5. User can close positions anytime

Advantages

• ✓ Fast entry, no waiting required
• ✓ Suitable for high funding rate spreads

Risks

• ⚠ May enter at suboptimal price spread

Single-Delay

LIVE

Trigger: Based on mark price spread threshold

When to Use

• When maximizing profit with optimal entry
• Waiting for price spread to reach threshold

Flow

1. User selects opportunity from dashboard
2. System starts MONITORING mark price spread
3. WAIT until net spread >= threshold (default 0.10%)
4. When threshold reached:
   • Long on exchange with LOWER price
   • Short on exchange with HIGHER price
5. Monitor positions
6. User can close positions anytime

Net Spread Calculation

net_spread = (short_price - long_price) / long_price - total_fees

Total Fees = (KuCoin fee + Bybit fee) × 2
           = (0.06% + 0.055%) × 2
           = 0.23%

Advantages

• ✓ Entry at optimal price spread
• ✓ Additional profit from price arbitrage
• ✓ Minimizes slippage

Risks

• ⚠ May not enter if spread threshold not reached
• ⚠ Requires waiting time

Multiple

Coming Soon

Trigger: ATR-based multi-level positions

Concept

• Open multiple positions at various price levels using limit orders
• Uses ATR (Average True Range) for spacing
• Lower fees (maker fee) with better entry prices
• More flexible in capturing price movements

Hedging Strategy

The system handles 6 different scenarios:

Scenario	Condition	Action
1	Both exchanges have positions	✅ Monitor (fully hedged)
2	Bybit has, KuCoin empty	🔄 Open partial hedge on KuCoin
3	KuCoin has, Bybit empty	🔄 Open partial hedge on Bybit
4	No positions, pending orders exist	⏳ Monitor orders
5	Clean state (no positions/orders)	🚀 Open full hedge
6	Mixed state	⏳ Monitor

Complete Execution Flow

Next Steps

• Understand Profit Calculation
• Learn about Risk Management