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Market-making bots

Quote both sides of a book, earn the spread, and carry the inventory that comes with it.

A market-making bot posts a bid and an ask around the mid and earns the difference when both fill, plus whatever the venue pays makers. Taba runs one strategy today, on Bulk. Three more venues are wired and waiting on their side.

Running one

Choose the venue and market, set the size, and start it. The Bots screen shows equity, position, volume and P&L while it runs, and stops it whenever you ask.

A bot is not a yield product. It holds inventory, and inventory is a position. In a trend it accumulates the losing side and keeps quoting into it — the classic failure of the strategy, and it is fast. It can also stall, disconnect or fail to stop when a venue or the network misbehaves.

Everything it does is your position and your loss. Start small, watch it, and do not leave it unattended because it has been fine so far.