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Emir Taner
Emir Taner

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Building Auto-Invest for Volatile Markets: Slippage, Price Sources & Execution Windows

“Let’s launch Auto-Invest, it’s just recurring buys.”
If you’ve ever said that with a straight face, you either haven’t shipped it yet - or your logs are lying to you. 😅

Volatile markets turn Auto-Invest from “cute DCA feature” into a real trading engine. Three things will decide whether your system behaves like a pro or a slot machine: s*lippage, price sources, and execution windows.*

1. Slippage: When “Every Monday at 10:00” Becomes a Meme 🕙

In fast markets, your scheduled order hits a book that’s already moved.

If you ignore slippage, you get:

  • angry users (“Why is my average entry 3% worse?”)
  • support tickets
  • screenshots with TradingView candles and passive-aggressive questions

At minimum, you need:

  • a max slippage setting per plan
  • clear behavior: cancel vs partial fill vs retry
  • logging that explains why an order skipped or adjusted

“Silent magic” is cute in marketing, terrible in trading.

2. Price Sources: One Number, Many Ways to Be Wrong 💸

Your Auto-Invest has to decide which price represents reality:

  • Last trade - noisy but simple
  • Mid price (best bid/ask) - better, but thin books lie
  • VWAP over X seconds - nice for smoothing, bad for sudden spikes

Whatever you choose, make it:

  • explicit in code (no “we’ll see what the SDK returns”)
  • consistent in UI copy (“executed at market using X source”)

If users can’t reconcile your execution price with the chart they see, they’ll assume you’re scamming them. Not “having slightly different data”.

3. Execution Windows: Point-in-Time vs Time-Boxed 🎯

“Execute at 10:00 sharp” sounds precise.
In reality: queues, rate limits, exchange latency, and you’re filling at 10:00:07 on a candle that moved 1.5%.

A saner approach:

  • Execution window: e.g. “between 10:00 and 10:05”
  • Target: best achievable price within that window respecting slippage limits
  • Status: “Executed at 10:03 within scheduled window

You trade fake precision for real robustness - and that’s a good deal.

If you want to see how Auto-Invest looks from the product side at Bybit, Binance, and WhiteBIT, you can check out the article.

Under the hood, all of them solve the same three problems - the interesting part is how you decide to do it in your own system 🚀

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