🎯 How to Precisely Control Buy & Sell Prices? Practical entry/exit_pricing Configuration

In trading, the placement price of your orders determines execution efficiency and slippage risk. Freqtrade provides the entry_pricing and exit_pricing settings, allowing you to finely control limit order pricing logic.

This guide explains how to use order book data to implement precise order placement strategies, including depth filtering, to improve order quality and strategy robustness.

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💡 Why configure entry_pricing / exit_pricing?

By default, limit orders are often placed at the current price or the candle close. This approach may:

• Fail to execute or deviate from the ideal price during volatile markets
• Struggle with low liquidity coins, causing stuck orders
• Increase slippage, negatively affecting strategy performance

By configuring entry_pricing and exit_pricing, you can:

✅ Place orders at bid/ask prices according to real order book ✅ Control the order book level (1st level, 2nd level, etc.) ✅ Enable depth filtering to avoid placing orders during abnormal market movements

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📥 entry_pricing — Buy Order Pricing Configuration

"entry_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 1,
  "price_last_balance": 0.0,
  "check_depth_of_market": {
    "enabled": false,
    "bids_to_ask_delta": 1
  }
}

📋 entry_pricing / exit_pricing Parameter Table (with defaults)

Parameter	Description	Default
price_side	Order direction: • bid: buy side (bid price) • ask: sell side (ask price) • same: buy → bid, sell → ask • other: buy → ask, sell → bid	"same"
use_order_book	Use order book pricing: • true: use live order book • false: use candle close (not recommended)	true
order_book_top	Choose order book level: • 1: level 1 (best price) • 2: level 2, etc.	1
price_last_balance	Offset from base price: • Negative → more conservative • Positive → more aggressive	0.0
check_depth_of_market.enabled	Enable depth filtering to prevent orders when bid/ask spreads are abnormal	false
bids_to_ask_delta	Maximum allowed bid/ask spread; orders are ignored if spread exceeds this (currency price unit)	0.001

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📤 exit_pricing — Sell Order Pricing Configuration

"exit_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 1
}

📋 exit_pricing Parameter Table

Parameter	Description	Recommended Default
price_side	Sell order direction, same options as entry_pricing	"same"
use_order_book	Use live order book pricing (true) or candle price (false)	true
order_book_top	Order book level; smaller → faster execution, larger → better price but slower	1

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📊 Order Placement Behavior Comparison

Scenario	Order Side	Order Book Level	Execution Speed	Slippage Control	Risk
same + order_book_top=1	Own side (buy → bid1, sell → ask1)	Level 1	Medium	Low	Medium
other + order_book_top=1	Opposite side (buy → ask1, sell → bid1)	Level 1	Fast	Medium	High (more slippage)
same + order_book_top=2	Own side, level 2 (bid2/ask2)	Level 2	Slow	Lower	Low
use_order_book=false	Candle price, no order book	—	Unstable	Cannot control	High

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✅ Recommended Configuration (Stable / Most Strategies)

"entry_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 1,
  "check_depth_of_market": {
    "enabled": true,
    "bids_to_ask_delta": 1
  }
},
"exit_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 1
}

Use together with order_types.entry = "limit" and order_types.exit = "limit".

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🧪 Practical Recommendations

Strategy Type	Recommended Setup
Conservative orders	same + top=1, enable depth filter to control execution & slippage
High-frequency arbitrage	opposite + top=1, maximize fill rate, tolerate moderate slippage
Low liquidity coins	top=1~2 + depth check, avoid abnormal prices
Aggressive low-price buys	same + top=2~3, combine with price_last_balance

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🧪 Example: Low-Price Buy + Conservative Sell

Trading PEPE/USDT on Binance (volatile, medium liquidity):

• Buy: aim for slightly lower price without sacrificing execution
• Sell: safely place at ask1 for fast exit

"order_types": {
  "entry": "limit",
  "exit": "limit"
},

"entry_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 2,
  "price_last_balance": -0.000001,
  "check_depth_of_market": {
    "enabled": true,
    "bids_to_ask_delta": 0.0005
  }
},

"exit_pricing": {
  "price_side": "same",
  "use_order_book": true,
  "order_book_top": 1
}

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🔍 Simulated Order Book Snapshot

Bids (Buy)	Asks (Sell)
0.00011300 (bid1)	0.00011320 (ask1)
0.00011280 (bid2)	0.00011330 (ask2)
0.00011270 (bid3)	0.00011340 (ask3)

📥 Entry Logic

• order_book_top = 2 → bid2: 0.00011280
• price_last_balance = -0.000001 → final price: 0.00011279
• Check if bid/ask spread (0.00011320 - 0.00011300 = 0.00020) < bids_to_ask_delta → allow order

✅ Final buy order: 0.00011279

📤 Exit Logic

• order_book_top = 1 + price_side = same → ask1: 0.00011320

✅ Final sell order: 0.00011320 → fast execution, low slippage

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✅ Usage Recommendations

Goal	Entry Pricing	Exit Pricing
Buy cheaper	same + top=2~3 + price_last_balance < 0	-
Fast execution	same + top=1	same + top=1
Avoid abnormal orders	check_depth_of_market.enabled = true	-

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📌 Summary

Config	Controls	Suggested Default
entry_pricing	Buy order placement	Use order book same/level1 + depth filter
exit_pricing	Sell order placement	Use order book same/level1
order_book_top	Which order book level	1 (conservative), 2+ (lower price)
bids_to_ask_delta	Max order book spread filter	1 (unit depends on market)
check_depth_of_market	Prevent abnormal orders during volatile swings	Enabled

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⚠️ Notes

• These settings only apply to limit orders (order_types.entry = "limit").
• Market orders completely ignore these parameters.
• Frequent order book queries may hit exchange rate limits; adjust enableRateLimit accordingly.
• Some exchanges (e.g., HTX) may have delayed order book data; consider execution lag.

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Good order placement is part of the strategy. Proper use of entry_pricing and exit_pricing reduces slippage and improves execution efficiency, making your strategies smarter and more reliable.