Why Aurono Uses Limit Orders Only

Aurono executes trades using limit orders only.

This is a deliberate design decision and a core part of Aurono’s execution model.

This page explains why market orders are not used, and what this means for strategy behavior.

What a Limit Order Is

A limit order specifies:

The exact price at which Aurono is willing to trade
The exact amount to buy or sell

For a buy:

The limit price is the maximum price Aurono will pay

For a sell:

The limit price is the minimum price Aurono will accept

The exchange may fill the order at a better price, but never worse.

What a Market Order Is (and Why Aurono Avoids It)

A market order tells the exchange:

“Execute immediately at the best available price.”

This means:

The final price is unknown in advance
Slippage can occur
Execution depends on current order book conditions

Aurono intentionally avoids this behavior.

Predictability and Determinism

Aurono is designed to be deterministic.

This means:

Every trade can be explained from configuration alone
The execution price logic is transparent
Behavior does not depend on timing or market microstructure

Limit orders provide this predictability.

Market orders do not.

Protection Against Slippage

Slippage occurs when:

Liquidity is low
Volatility is high
Order books shift rapidly

With market orders:

The execution price may differ significantly from expectations

With limit orders:

Aurono defines the acceptable price boundary
Execution happens only within that boundary

Aurono never trades outside the price implied by your rules.

Consistency Across Exchanges

Different exchanges handle market orders differently.

Using limit orders ensures:

Identical behavior on Kraken, Bitvavo, and Coinbase
No exchange-specific surprises
No hidden execution differences

This consistency is essential for a rule-based system.

Separation of Concerns

Aurono separates responsibilities clearly:

Rules decide when trading is allowed
Candle data determines price boundaries
Limit orders enforce those boundaries
Ticker prices are used only for sizing

Market orders blur these boundaries.

Limit orders preserve them.

Handling Volatility and Spikes

During rapid price movement:

Market prices may spike briefly
Order books may thin out
Execution prices may deviate unexpectedly

Aurono ignores intraperiod noise and executes only at candle close.

Limit orders ensure that:

Short-lived spikes do not cause unintended trades
Execution remains aligned with confirmed price movement

What Happens If a Limit Order Is Not Filled

If a limit order is not filled:

The order remains open according to exchange rules
Aurono monitors its status
No forced repricing occurs

Aurono does not:

Chase the price
Convert limit orders to market orders
Retry with adjusted prices

Unfilled orders are part of controlled execution.

Common Questions

“Why didn’t Aurono execute immediately?”
Because the limit price was not reached.

“Why didn’t it chase the market?”
Because Aurono does not react to live prices.

“Why not give users a choice?”
Because predictability and safety are prioritized over flexibility.

Key Takeaway

Limit orders ensure that Aurono:

Trades only at known prices
Never surprises you with execution
Behaves identically across exchanges
Remains deterministic and auditable

Aurono executes rules — not urgency.

Trading Engine — How Aurono Executes Trades
Precision, Rounding & Exchange Constraints
Average Cost Base Explained