3.19

Market-Making

PYTHON PLUGIN Stocks Market Making

Description

Strategy 3.19: Market making with inventory-aware bid/ask quoting

Strategy Logic

Strategy 3.19: Market Making. Post bid and ask around the mid-price, profit from the bid-ask spread. Uses inventory management to skew quotes when position becomes unbalanced. Requires 'bid' and 'ask' columns, or uses close +/- half-spread as proxy. Generates BUY signals at bid, SELL signals at ask.

Parameters

Parameter Default Value Type
half_spread_bps 10 int
inventory_limit 1000 int
skew_per_unit 0.1 float
vol_lookback 20 int

Risk Configuration

Risk Parameter Value
Max Position Pct 15.0%
Stop Loss Pct 2.0%
Take Profit Pct 1.0%
Max Drawdown Pct 5.0%