AskPriceBufferPer is a price buffer applied to limit or hybrid orders that helps improve the likelihood of your order being filled, especially in fast-moving markets.
It adjusts the limit price slightly above the current market ask to increase execution probability without converting the order into a full market order.
๐น How It Works
The formula used by MagicTradeBot is:
Limit Price = Best Ask + (Best Ask ร AskPriceBufferPer / 100)
- Best Ask: Current lowest ask price in the order book
- AskPriceBufferPer: Percentage buffer added to the ask price
Example 1: Small Buffer
- Best Ask = $100
- AskPriceBufferPer = 0.1
Limit Price = 100 + (100 ร 0.1 / 100) = 100 + 0.10 = 100.10
Your limit order will now execute slightly above the current ask, improving the chance of a fill during small price fluctuations.
Example 2: No Buffer
- Best Ask = $100
- AskPriceBufferPer = 0
Limit Price = 100 + (100 ร 0 / 100) = 100
- Order is placed exactly at the current ask price
- Higher chance of missed fills if the price moves quickly
๐น Why Itโs Important
1๏ธโฃ Improves Fill Probability
- In fast markets, the price may move before your limit order is matched
- Adding a small buffer increases the chance the order will be filled
2๏ธโฃ Reduces Missed Trades
- Limit orders without buffers may fail to execute, leaving your strategy unfulfilled
- A small buffer ensures entries stay effective without converting to a market order
3๏ธโฃ Controls Slippage
- Unlike market orders, the buffer is small and controlled
- Helps maintain price precision while still improving execution
๐น Best Practices
Small Buffer (0.05% โ 0.2%)
- Suitable for most crypto pairs
- Balances fill probability with price control
Zero Buffer (0%)
- Use only in calm, highly liquid markets
- Risk of missed fills increases in volatile conditions
Adjust Dynamically
- For highly volatile pairs, slightly higher buffer (0.2% โ 0.5%) may prevent missed entries
- For calm pairs, minimal buffer keeps execution near target
๐น Summary
| Setting | Effect |
|---|---|
| 0 โ 0% | Exact order book price, higher risk of missed fills |
| 0.1 | Slightly above ask, improves execution without significant slippage |
| 0.5+ | Higher chance of fill in fast-moving markets, small controlled slippage |
Key Takeaway: AskPriceBufferPer allows you to improve limit order execution without sacrificing price control. It is essential for:
- Fast-moving markets
- Scalp or high-frequency strategies
- Reducing missed entries due to short-term price fluctuations