A TWAP strategy underpins more sophisticated ways of buying and selling than simply executing a lot of single orders. For example: Dumping a huge number of Coins in one big order is likely to affect market perceptions, with an adverse effect on the price.
High-volume traders use TWAP to execute their big trades over a specific time period, so they won‘t affect the true market price too much. TWAP basically is a strategy of executing one big order, as multiple smaller orders, over a specified time period.
2. How to use TWAP on Pionex?
Visit Pionex and select TWAP from the list of trading tools.buy/sell through TWAP
Simply input 2 parameters: Order Period and Total Investment, and the TWAP will be ready. Pionex lets you to choose one of 5 different Order Periods for the TWAP strategy: 1 Hour, 6 Hours, 12 Hours, 1 Day, and 7 Days.
TWAP will place an order according to your configuration every 10 minutes.
3. Example of using a TWAP Bot
Sell 1 ETH by using TWAP: Set the investment period to 1 hour and the total investment for TWAP as 1 ETH. According to the system estimation, it’ll sell 0.1666 ETH every 10 minutes. After 1 hour the strategy is finished and the full amount of 1 ETH will have been sold, without having too much effect on the market price in the process.