Part 7/9:
Setting Price Ranges and Analyzing Performance
When creating a position in a liquidity pool, it is essential to establish price ranges based on recent trends. For instance, examining historical data, investors can define their "min" and "max" price settings to align with market movements, ideally capturing necessary fluctuations without going out of range.
Executing the Trade
Once the simulations support a favorable investment, executing the trade involves using decentralized exchanges adeptly to convert assets into the desired liquidity pool positions. Careful attention must be paid to slippage rates as they can affect overall profitability.