Discussing the article: "Creating a market making algorithm in MQL5" - page 3

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Roman Shiredchenko #:
to the pile, yeah. Except that on futures these mm dead on moex..... do not work.....

Some time ago I was a "market maker" in one of illiquid futures - up to a quarter of all deals were mine. Though there were some powerful bids there from a real market maker, but away from actual prices.

 
Roman Shiredchenko #:
to the pile, yeah. Except that these mm dead on moex..... don't work......

That's where clearing makes all the difference.

 
JRandomTrader #:

Once long ago I was a "market maker" in one of illiquid futures - up to a quarter of all deals were mine. Although there were some powerful bids from a real market maker, but far away from actual prices.

Here we go.... ;-)
 
Renat Akhtyamov #:

there clearing is the solution to everything.

yes.... ;-)
 
Renat Akhtyamov #:

it's all about clearing.

You're stuck in a triangle, you can't get out, take a wider view of the world.

 
Sergey Chalyshev #:

You're stuck in a triangle, you can't get out, look at the world.

I don't need anything else, I've got it all.

 
Does the described algorithm apply only to hedging accounts or is there an option for netting?
 
I assume that this is not a MM simulator.
Where viral market and limit orders of the crowd with different probabilities should be generated, and you all such MM - confirm or refute the myths about market makers by your interaction with this virtuality.

And thus you find out whether you are a "puppeteer" or not. So to speak - on your own, albeit virtual, experience.
 
JRandomTrader #:

Once long ago I was a "market maker" in one of illiquid futures - up to a quarter of all deals were mine. Although there were some powerful bids from a real market maker, but far away from the actual prices.

How much did you bank?
 
"Although it is not the market maker's job, they often nip Pump&Dump attempts in the bud when prices are just beginning to be driven up by fraudulent participants. In these initial phases, the market maker throws huge portions of limit orders at the player who is trying to "market" prices upwards. This extinguishes demand, and beginners in the business of pampa very often break their teeth against the market-maker. But if the pump is well planned and executed according to the plan - the influx of many market orders, powerfully moving the price, forces the market-maker to leave the market for a while."

And, here, what will prevent MM himself from organising Pump&Dump, as well as anything else, in order not to be, at least - in losses, and at most - in zero?! In those cases when he needs to bring the liquidity that they poured into the market to +.
After all, if your counterparty is MM, it means that he entered the market.
And if he has an imbalance of supply and demand in the flat, he compensates it with his liquidity for the size of the imbalance - he enters the market.
And guess where the price will go - against MM, or in the direction of his orders?

And in general, if a company, or a bank, or a private person is a MM, then from what motivation of charity?!
Don't laugh at MM's slippers.

MM's function is to make the price attractive for a small speculator by narrowing the spread.
Further - to provide liquidity (which, in turn, reduces volatility), including for small speculator.
Further - price quantisation (price stabilisation) - throwing small speculators out of the market.

Strange as it may seem, "ejection of small speculator" is "price stabilisation". Well, just like in the example with flat and imbalance in it.
MM used, on the basis of "spread narrowing" - "price attractiveness", his liquidity in the flat in order to compensate the imbalance. Had he not used it, the price would have come out of the flat - would have been more volatile. In other words, he restrained volatility with his liquidity. Then he leads the price out of the flat, either with a false move and return to the flat, or with continuation - without return. That demolishes the stops of both those whose counteragent he was and those who stood against his orders. He leaves the market - with a profit, they - with a loss. He, at this stage, does not come out with a big profit, he is a scalper (at this stage). And his takes are the stops of his counterparties.
But he takes the price out of the flat boundaries not as sharply as it would go out without him, but with a return to the flat boundaries and bounces, or with a return to the flat....
Actually... MM organises the flat by injecting its liquidity and restraining the price movement))))))

But the thing is that he trades his liquidity with all types of players.

So, if narrow spreads and liquidity attract a small speculator, who is then thrown out of the market. Why do you need MM?!
What, in your opinion, is its purpose?
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