> ## Documentation Index
> Fetch the complete documentation index at: https://mathematicalcompany.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Execution Intelligence

> Feedback loops that measure and improve execution quality over time.

Execution Intelligence provides a feedback loop: measure execution quality, identify problems, and automatically adjust strategy parameters to improve.

## The Feedback Loop

<Steps>
  <Step title="Execute Order">
    Submit order to the exchange via the strategy pipeline.
  </Step>

  <Step title="Measure Quality">
    Track fill rate, slippage, adverse selection, and market impact.
  </Step>

  <Step title="Diagnose Issues">
    Identify root causes: spread too tight, size too large, bad timing.
  </Step>

  <Step title="Adjust Parameters">
    Auto-tune spread width, order size, and timing based on diagnostics.
  </Step>

  <Step title="Execute Again">
    Run the next cycle with improved parameters. Loop continues.
  </Step>
</Steps>

Most trading systems are open-loop: they execute and move on. Execution Intelligence closes the loop by feeding results back into the strategy.

## Execution Quality Metrics

| Metric                | What It Measures                                  | Why It Matters                                          |
| --------------------- | ------------------------------------------------- | ------------------------------------------------------- |
| **Fill rate**         | % of orders that get filled                       | Low fill rate = quoting too aggressively                |
| **Slippage**          | Difference between expected and actual fill price | High slippage = poor execution or thin books            |
| **Adverse selection** | P\&L immediately after fill                       | Negative = we're getting picked off by informed traders |
| **Market impact**     | Price movement caused by our orders               | High impact = we're too large for this market           |
| **Timing cost**       | Cost of delayed execution                         | Relevant for TWAP/VWAP algos                            |

```python theme={null}
# Measure execution quality
quality = execution_quality(
    strategy="political_mm",
    period_days=7,
)
# {
#     "fill_rate": 0.73,
#     "avg_slippage_bps": 12.5,
#     "adverse_selection_5s": -0.003,
#     "market_impact_bps": 8.2,
# }
```

## Adaptive Execution

Based on quality metrics, automatically adjust strategy parameters.

### Spread Auto-Tuning

```
High adverse selection --> widen spread
Low fill rate --> tighten spread
High market impact --> reduce order size
```

| Signal                                    | Parameter      | Direction       |
| ----------------------------------------- | -------------- | --------------- |
| Adverse selection > threshold             | `spread_width` | Increase by 10% |
| Fill rate \< 50%                          | `spread_width` | Decrease by 5%  |
| Market impact > 10bps                     | `order_size`   | Decrease by 20% |
| Fill rate > 90% and low adverse selection | `order_size`   | Increase by 10% |

### Time-of-Day Patterns

Markets have liquidity patterns. Execution Intelligence learns when to be more/less aggressive:

```python theme={null}
# Analyze time-of-day patterns
patterns = execution_patterns(strategy="crypto_mm", group_by="hour")
# {
#     "best_hours": [14, 15, 16],  # UTC - US market hours
#     "worst_hours": [3, 4, 5],     # Low liquidity
#     "recommendation": "Reduce size 50% during 03:00-06:00 UTC"
# }
```

## Cross-Exchange Execution

When the same market exists on multiple exchanges, route to the best venue.

### Smart Routing

| Factor    | Weight | Description                     |
| --------- | ------ | ------------------------------- |
| Price     | 40%    | Best bid/ask across venues      |
| Liquidity | 30%    | Depth available at target price |
| Fees      | 20%    | Maker/taker fee structure       |
| Latency   | 10%    | Historical fill time            |

```python theme={null}
# Smart order routing
route = smart_route(
    market="will-btc-100k",
    side="buy",
    size=100,
    venues=["polymarket", "kalshi"],
)
# {"venue": "polymarket", "expected_price": 0.62, "expected_slippage": 0.001}
```

### Exchange Health Monitoring

Detect degraded exchange performance and route around it:

* API latency spikes
* Increased error rates
* Orderbook thinning
* Fill rate drops

## MCP Tools

| Tool                 | Description                                      |
| -------------------- | ------------------------------------------------ |
| `execution_quality`  | Quality metrics for a strategy or the fund       |
| `execution_patterns` | Time-of-day and market-specific patterns         |
| `route_analysis`     | Best venue analysis for a given trade            |
| `exchange_health`    | Current health status of all connected exchanges |