Jeff Yan - High Frequency Crypto Market Making & the Hyperliquid Exchange (S6E2)
Flirting with Models
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How to Use Alpha Signals to Improve Your P&L
Biasing your inventory is another way to actually implement that alpha in a way that can have a meaningful impact on your P&L. It reminds me and the frequency I trade, DFA for example, they don't trade momentum specifically, but when they go to buy value stocks, they're going to screen out the ones with really low momentum. They're not explicitly incorporating momentum as a factor, but they're waiting for that negative momentum to abate before they buy their value stocks. Totally different set of factors, but similar idea of taking a theoretically orthogonal alpha signal, not trading it explicitly, but incorporating it into the way you're trading to add some marginal edge, marginal improvement
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