A wide range of automated trading strategies can be executed on Carbon. Trading strategies are fully on-chain and non-custodial, require no code to deploy, and can be performed with any standard ERC20 token.
The post will cover a few example trading strategies, including:
Limit Order
Range Order (“scale in” or “scale out”)
Grid Trading (“buy low, sell high” repeatedly with a single position)
Momentum Trading
Pegged-Asset Arbitrage
1. Limit Order
A one-time buy order or sell order that executes at a specific price. Use limit orders to set your entry and exit points.
e.g., Buy ETH at $1500
2. Range Order (“scale in” or “scale out”)
Execute a range order that “scales in” or “scales out” of a position by executing orders across a range of prices
e.g., Buy ETH $1800–1900
Grid Trading (“buy low, sell high”)
Repeatedly buy in one price range and sell in a higher price range. Use a single liquidity position and avoid creating multiple orders.
e.g., Repeatedly buy ETH $1800–1900 and sell ETH $2100–2200, until you close or adjust the strategy.
4. Momentum Trading
Buy into a rising asset and gradually sell as the token continues to rise. Alternatively, sell into a downward trend rather than try to time the bottom.
e.g., ETH is at $1800; buy ETH $1900–2000 and sell $2100–2200
5. Pegged-Asset Arbitrage
Take advantage of de-pegs between pegged assets.
e.g., ETH/rETH strategy that auto-buys ETH when it de-pegs below the price of rETH, and auto-sells ETH when it re-pegs to the price of rETH.
Or, a DAI/USDC strategy that buys and sells DAI when it de-pegs and re-pegs from USDC.