Moving Volatility Channel

Overview

The Moving Volatility Channel Strategy is an advanced market making solution that leverages the Keltner Channel concept. It excels in trending market conditions across various asset classes, using moving averages as a focal point for position management. This strategy's distinctive feature is its method of determining channel width based on the average volatility of candle sizes within a given period, allowing it to adapt to a broad spectrum of market dynamics.

Ideal Applications

Blus chips assets: ARB, ETH, BTC

In some instances this strategy can be effective in higher volatitliy token pairings when configured appropriately.

This strategy requires candle data to operate, ensure there is a reliable data source for the candles for proper execution.

Use Cases

• Trend‑following deployment with volatility‑aware widths

• Blue‑chips where candle data quality is robust

Strategic Advantages

• Enhanced Trend Capture for more aggressive market making

• Tailored approach to both low and high volatility scenarios

• Minimized Risk Exposure

• Real-time adjustment to positions

Technical Explanation

Positions are set using a volatility‑aware channel (e.g., EMA with ATR/Keltner‑style bounds). Ranges widen in high volatility and narrow in low volatility. Triggers and curves may be applied.