Stacking Algo

Dynamic Stacking Algorithm

A dynamic Stacking Algorithm is a systematic order-execution strategy that automatically scales market exposure based on live price action. Instead of executing a single trade, the algorithm builds a "stack" of multiple order layers on the price ladder, adjusting your total position size in real-time as the market moves:

• Scaling In (Increasing Exposure): As the price moves, the algorithm triggers consecutive order layers. In a mean-reversion strategy, it adds layers as price decreases to average down the entry cost; in a trend-following strategy, it stacks additional layers as price increases to build into a winning momentum trade.

• Scaling Out (Decreasing Exposure): When the price hits target profit levels or reverses past a protection threshold, the algorithm systematically unwinds the stacked layers—automatically locking in gains or reducing risk to protect capital.

By calculating grid spacing and position sizing dynamically, it matches your market exposure directly to the velocity of price changes.