Hyperliquid Limit Chase entry mechanism

An automated limit order chasing system for Hyperliquid that dynamically adjusts limit orders to stay at the best bid/ask, improving fill rates while maintaining price control. But why even use a limit chase? I personally developed this limit chase in order to reduce fees compared to market orders. For me it worked to increase sharpe ratio (It worked well for my use case, does not guarante any success for other implementations)

Warning

Start using limit chase ==>

1. Install dependencies:

pip install -r requirements.txt

2. Configure environment:

cp .env.example .env
# Edit .env with your wallet credentials (ADDRESS, PK)

3. Verify setup:

python scripts/diagnose_setup.py

4. Run example:

# Mainnet (real money!)
python examples/limit_chase_usage.py

Configuration

Required .env variables:

• ADDRESS - Your wallet address
• PK - Your private key
• TESTNET - Set to true (Boolean => false for Mainnet)

Optional:

• POST_ONLY - Post-only orders (default: false)
• DATABASE_URL - For trade logging
• NTFY_TOPIC / NTFY_ACCESS_TOKEN - For notifications

Never commit your .env file!

How It Works

1. Places initial limit order at best bid/ask
2. Monitors order book via WebSocket
3. Refreshes order when price drifts beyond tolerance_ticks or order age exceeds max_age_ms
4. Aborts if price moves beyond max_chase_ticks from start
5. Polls for fill until filled or aborted

Parameters

Parameter	Description	Default
tick_size	Minimum price increment	0.5
tolerance_ticks	Price drift before refresh	1
max_age_ms	Max order age before refresh	5000ms
max_chase_ticks	Max price movement before abort	10
order_size	Order size in asset units	0.0002

Usage Example

from hl_limit_chase import (
    HyperliquidExecutor,
    LimitChaser,
    LiveExchangeClient
)

executor = HyperliquidExecutor(testnet=False)
ex = LiveExchangeClient(executor, "BTC")
chaser = LimitChaser(
    ex,
    tick_size=0.5,
    side="buy",
    order_size=0.0002,
    tolerance_ticks=1,
    max_age_ms=5000,
    max_chase_ticks=10
)

Testing

Run integration test with CSV logging:

TESTNET=true python examples/test_limit_chase.py  # Testnet
python examples/test_limit_chase.py              # Mainnet

Results are logged to data/limit_chase_accuracy.csv.

Project Structure

HL_LIMIT_CHASE_V2/
├── hl_limit_chase/          # Main package
│   ├── __init__.py
│   ├── limit_chase.py       # Core limit chase logic
│   ├── executor.py          # Hyperliquid API executor
│   └── trade_logger.py      # Trade logging
├── examples/                # Example scripts
│   ├── limit_chase_usage.py
│   └── test_limit_chase.py
├── scripts/                 # Utility scripts
│   └── diagnose_setup.py
├── data/                    # Test data/output
│   └── limit_chase_accuracy.csv
└── requirements.txt

Structure Diagram

License

MIT License - see LICENSE file.

Disclaimer

This software is provided "as is" without warranty. Trading cryptocurrencies involves substantial risk. Use at your own risk.