What is Swing Ladder?
Swing Ladder manages a position using a ladder of price levels (legs) anchored to a base price and quantity. We start as if we had bought at the base (leg 0) — a virtual initial buy. The same broad idea is also known as Grid Trading
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Algorithm
- When the price drops to the next buy level, the engine places a limit buy there. ADD
- When the price rises to the next sell level, it places a limit sell there. REDUCE
- If the price moves to a different level while an order is waiting, the waiting order is cancelled and replaced. CANCEL
- If the price jumps past a level, the engine still buys or sells, slightly better than the current price. ADD REDUCE
- Otherwise it waits. HOLD
Hover leg labels and order tickets in the chart for formulas.
Demo: 10 units @ base · 10% per leg = 1 unit per fill.
Ladder at initial state
HOLD
No action
Leg 0 (base) is at $100. We treat a demo position of 10 units there. Lower legs are buy levels; upper legs are sell levels. Each activation uses 10% of base = 1 unit per fill.