✏️Strategy Configs

This section will guide users on how to set and manage the parameters for their market making strategies.

Each strategy with its parameters and use cases.

Price Strategy:

Focused directional trading, being more aggressive on either buying or selling, based on a specific threshold preset by the user.

13.Price Strategy

Parameter	Description
Notional	Refers to the total value of assets to be traded (quote token size)
Threshold	Sets a limit for price deviation before triggering actions (token price)
Refresh Time	Time interval for refreshing order and creating new orders according to ongoing market data

Volume Strategy:

Algorithmic strategies play an active side in contributing to trading activity.

14.Volume Strategy

Parameter	Description
Notional	Determines the total volume of assets to be traded (quote token size)
Threshold	Sets a minimum volume change required to trigger actions (token price)
Refresh Time:	Time interval for refreshing order and creating new orders according to ongoing market data

Randomness (can be used with Volume Strategy):

It allows to adjust actions based on random factors which can be beneficial in capturing trading opportunities and responding dynamically to market changes.

15.Randomness

Parameters	Description
Manual Bid %	Manual price of token on bid side. If token price is $2 and manual bid is 0.8 then manual bid price should be $1.6
Manual Ask %	Manual price of token on ask side. If token price is $2 and manual ask is 1.2 then manual ask price should be $2.4
Best Bid Max %	Best bid maximum percentage from manual bid price. Outcome should be close or far from manual bid according to percentage of best bid max
Best Ask Max %	Best ask maximum percentage from manual ask price. Outcome should be close or far from manual ask according to percentage of best ask max
Order Amount	Specifies the size of order (quote token size)

Orderbook Strategy:

Keeps the market active on order book exchanges by contributing to an equally distributed order book with continuous trading activity.

16.Orderbook Strategy

Parameter	Description
Bid Spread	Sets the first level spread for placing bid orders
Ask Spread	Sets the first level spread for placing ask orders
Order Amount	Specifies the size of order (base token size)
Order Levels (OL)	Number of orders on each side (buy/sell) levels in the order book considered for trading
Bid OL Spread	Spread for placing bid orders in second order level onward in addition of last order spread
Ask OL Spread	Spread for placing ask orders in second order level onward in addition of last order spread
Bid OL Amount	Order size for bid orders in each order level (base token size) in addition of last order amount
Ask OL Amount	Order size for ask orders in each order level (base token size) in addition of last order amount
Refresh Time	Time interval for refreshing order and creating new orders according to ongoing market data
OL Refresh Time	Time interval for refreshing/canceling order level hold orders
Trades Buffer	Buffer size to fetch recent trade prices. Higher the buffer, the less likelihood to get manipulated by recent trades

Optimal Inventory (can be used with Orderbook Strategy):

Dealing with inventory risk and set inventory re-balancing target.

17.Optimal strategy

Parameter	Description
Min Spread	The minimum spread limit as percentage of the mid price
Refresh Time	It can be interval (1m, 5min, 1h, 1d) or in seconds (60, 300, 3600, 86400) to fetch market data and update inventory skew
Gamma	Risk factor, 0.01 for risk neutral, 0.5 for risk averse. Fail safe to 0.5
Volatility Buffer Size	Number of ticks that will be stored to calculate volatility
Kappa	Order book depth factor
Trading Intensity Buffer	Number of ticks that will be stored to calculate order book liquidity
Inventory Target Base %	Set target base asset in percentage to keep in inventory
Debug (Optimal Inventory)	Enable/disable debugging for optimal inventory to show more/less logs

The strategy configuration of the MMBox bot allows users to define crucial parameters for market making. By carefully setting the trading pair, spread, order size, time intervals, price fluctuation range, and risk management levels, users can tailor the bots behavior to align with their specific trading goals and risk tolerance. This ensures a robust and adaptive market making strategy.