# Choosing Kandel parameters

This section goal is to help you develop an intuition to choose your Kandel parameters. It should be taken as an explanation on how the various parameters can impact your Kandel, and how the market conditions (ex: volatility) could be taken into account. It is **not** a trading advice.

**Note** : As a reminder, Kandel is not intended as a "set and forget" strategy, and needs ongoing maintenance and checks.

We will be going through standard steps you might want a take in order to check the market and deploy a new Kandel. Essentially, that means that by using discrete AMM such as Kandel, you can fix the level of liquidity you are offering adjusted per volatility. So choosing the spread starts with answering the question - what is the volatility? If you can estimate or predict it well enough, the only thing you need to do is pick the spread (i.e. your parameters for Kandel).

### Check-in frequency <a href="#check-in-frequency" id="check-in-frequency"></a>

First, it is good practice to know how often you aim to update your Kandel. Depending on the trading pair you chose, markets can behave very differently.

**Example** : I will update my Kandel every 24h.

### Set your price range <a href="#set-your-price-range" id="set-your-price-range"></a>

Next, you should try to anticipate how much the market/price will vary during that period you just decided on. You are kind of betting on daily volatility.

**Example :** I will look at the market volatility for the past 24h, and decide on the price range for my new Kandel.

### Number of Offers / Ratio <a href="#number-of-offers--ratio" id="number-of-offers--ratio"></a>

This is the number of offers / ratio of the progression used to calculate the price grid. You would logically bet on intra-day volatility (few min or hours). If the volatility is increasing, you might want to increase the grid size (space between the offers). You will find more information about its calculation in the previous table.

**Note :**&#x20;

* High volatility: spaced out offers (less offers in the chosen range) -> higher ratio
* Low volatility: narrow offers (more offers in the chosen range) -> smaller ratio

### Step size <a href="#step-size" id="step-size"></a>

The general idea to configure your step size, is that a bigger volatility would likely lead to a bigger step size.

### Simple use case <a href="#simple-use-case" id="simple-use-case"></a>

Let's say you want to have a continuous Kandel, and maybe your current paramaters allow you only 2 offers:

* The solution to this is instead of having 2 offers with a step size = 1, you can configure 16 offers with a step size of 8
* That gives you continuity (more offers for a similar interval)
* When your offers are taken, Kandel will be able to "grab" lower prices


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