Currently, it’s still the tutorial round, and there are two products available for trading: one is pearls with stable prices, and the other is bananas with highly volatile prices. I started by studying pearls because they seemed simpler (>_<).
After some research, I found that the price of pearls fluctuates very stably around 10,000. So, my Strategy v1 was straightforward: submit two orders every round—a buy order at 9,999 and a sell order at 10,001, with the maximum tradable size at the time, since it was a guaranteed profit. The results were satisfying: the profit curve rose steadily, though the total profit wasn’t very high.
Strategy v2 was an improvement over v1. I noticed that sometimes the market’s bid-ask spread was quite wide (4–6 dollars), while my Strategy v1 always kept the spread at 2 dollars. This meant that although I executed many trades, the profit per trade was relatively low.
So, in Strategy v2, I split the approach into active and passive trading:
⦁ Active part: If the current bid/ask prices are above/below 10,000, I sell/buy to them immediately at the best available price.
⦁ Passive part: If the market’s best bid/ask are around 10,000, I place orders at best bid +1 and best ask -1 (while ensuring my bid/ask prices don’t exceed or fall below 10,000). This way, I secure priority in trades without always compressing the spread to just 2 dollars.
The results of Strategy v2 were quite good, with a total profit of over 3,500.
