Author: cgambit 0xdEa
Original Post Date: 10 Jan 2022
With recent bearish market conditions, kill switch function has been triggered quite frequently.
However, we are wondering why kill switch does not have a market sell functionality before stopping the bots.
We are of opinion that kill switch with negative value might better function like a stop loss, such that all inventory will be sold off at market price when triggered.
We understand the point that as market makers, we do not want to be the one driving the price down due to activating of kill switches/stop-losses. This totally make sense, & acceptable notion.
Another view is that market selling may result to more losses as price drops down drastically. We may be able to prevent this case when we can use the price_floor parameters that will prevent market selling at pre-determined percentage. At least, in this case, users may still have some degree of control in limiting losses.
Aside from these perspectives, we would welcome and appreciate other insights that we may be missing here.
In summary, our desired outcome is to minimize further losses by selling existing inventory as soon as kill switch is triggered.