Market Making Bot

Strategy Example - Not Investment Advice

This bot configuration is provided as an educational example to demonstrate software capabilities. It does not constitute investment advice, a trading recommendation, or an endorsed strategy. Users must independently evaluate, test, and customize this configuration before deployment. You are solely responsible for all trading decisions and outcomes. See Legal Disclaimers for complete terms.

About

This market-making bot implementation monitors price spread at a single market. When the bid-ask spread exceeds the configured fee threshold, the bot places both buy and sell orders.

Market Making Risk

Market making strategies face significant risk in trending markets. Price trends may result in one-sided order fills, leaving the strategy with unrealized inventory positions. This can result in losses when the market moves directionally.

The strategy attempts to capture the spread between buy and sell prices. However, trending markets may result in only one side of orders being filled, causing the strategy to accumulate positions that may lose value if the trend continues.