Backoff Strategies

Backoff Strategies are error-handling mechanisms used when an API request fails or is rejected due to rate limiting. Instead of immediately retrying, which could worsen the situation, the system waits for an increasing amount of time before attempting again.

Common approaches include exponential backoff, where the wait time grows geometrically with each failure. This prevents the trading system from inadvertently launching a denial-of-service attack against the exchange.

Implementing these strategies is a standard requirement for robust API integration. It ensures that the system gracefully handles temporary connectivity issues or limit breaches without manual intervention.