Trading Deltas
Last updated
Last updated
Trading Deltas tells the story about how fast the wallet trades.
If you don't know what percentiles are, head to the section of as it is explained there. If you still didn't understand, ask us on the community group.
The distribution of Deltas shows how fast the trader open and close his trades.
In the example above, his fastest trade took only 30 seconds. The lengthiest trade took 153 minutes. If you sum all the trading times and divide by the number of trades, it will be 19.7 minutes - but this isn't a good metric because it can be skewed.
Imagine if there was a single trade that took 6 months, the average trading time then would be many days. But all the other trades were much faster. Does it make sense?
That's why percentiles are SO important, because it shows the distribution of all trades, lined up in the best way possible for us to comprehend without having to analyze each trade individually.
The 10th Percentile: in the example above, it means 10% of his trades took less than 148 seconds. If he traded 20 times, only 2 trades took less than this time.
The 25th Percentile: Again, if he traded 20 times, only 5 of his trades were less than 298 seconds.
50th Percentile: Half of his trades took less than 596 second and half took more than that.
Generally speaking, execution bots will fail if the wallet trades too fast. The most important factors here are the 10th, 25th and 50th percentiles. You need to make sure that most of his trades takes at least a couple minutes, so it's not a high frequency trader and the bot will be able to copy properly.
We recommend the 10th percentile to be above 120-200 at least.
Another thing to avoid here are: Snipers! - read the section