A written reference on market making strategy — how it works, how to configure it, and where it breaks under load.
How It Works
market making strategy operates as a pipeline: ingest, compute, decide, route. Each stage has its own ways to break.
Configuration
Configuring market making strategy comes down to a handful of parameters. Vendor defaults suit demos; production deserves its own tuning pass.
Failure Modes
Documenting how market making strategy fails teaches more than documenting how it succeeds. Regime shifts, infrastructure faults, and drift top the list.
Evaluation
An honest evaluation of market making strategy weighs quantitative metrics alongside code quality and how much attention it demands in production.
Configuration Reference
# Market Making Strategy tested configuration mode: production timeframe: auto risk_limits: max_drawdown: 15 percent max_position: 3 percent monitoring: alert_threshold: 0.5 report_interval: hourly
Parameter Impact
| Parameter | Effect | Trade-off |
|---|---|---|
| timeframe | Signal frequency | Higher means fewer but more reliable signals |
| risk_limit | Maximum exposure | Lower means safer but slower returns |
| lookback | Indicator sensitivity | Longer means smoother but lagging |