Flirting with Models Jeff Yan - High Frequency Crypto Market Making & the Hyperliquid Exchange (S6E2)
25 snips
May 8, 2023 AI Snips
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Transcript
Episode notes
Making vs. Taking
- Choose between market making and market taking based on your research inclination.
- Market making is infrastructure-heavy, while taking relies more on statistical models.
Taker vs. Maker Expectations
- Takers anticipate market movement in their trade direction, crossing the bid-ask spread.
- Makers hope for market stability, profiting from spread between buy and sell orders.
Importance of Data Analysis
- Spend significant time examining raw exchange data, including timestamps, for anomalies.
- Direct data observation is crucial, as automated cleaning processes are never perfect.