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Market Making Trading Mode

MarketMakingTradingMode​

A market making strategy that will maintain the configured order book on the target exchange.

Behavior​

When started, the strategy will create orders according to its configuration. It might cancel open orders when they are incompatible.

As soon as the maintained order book becomes outdated (from a changed reference price or filled/canceled orders), it will be adapted to always try to reflect the configuration.

When a full order book replacement takes place, orders are canceled one by one to avoid leaving an empty book.

The strategy will use all available funds, up to a maximum of what is necessary to cover 2% of the pair's daily trading volume on the target exchange within the first 3% of the order book depth.

Note: The strategy does not create artificial volume by forcing market orders, it focuses on maintaining an optimized order book.

Configuration​

  • Bids and asks counts define how many orders should be maintained within the book
  • Min spread is the distance (as a % of the current price) between the highest bid and lowest ask
  • Max spread is the distance (as a % of the current price) between the lowest bid and highest ask
  • Reference exchange is the exchange to get the current price of the traded pair from. It should be a very liquid exchange to avoid arbitrage opportunities.

An advanced version of this market making strategy is available on OctoBot Market Making.