Today brought major progress in Round 2 – I’m thrilled to report my Orchids PnL has reached 82k! Can’t wait to share the key insights:
1️⃣ One-Sided Market Making is Highly Profitable
⦁ Tighter spreads attract more orders
⦁ After extensive parameter testing, optimal spread = 2-3
⦁ Balancing spread tightness significantly improves results
2️⃣ Conversion Guarantee Enables Aggressive Positioning
⦁ Even at -60 position, you can still submit size=-70 ask orders
⦁ Conversion trades are guaranteed to execute
⦁ This dramatically increases trading volume potential
3️⃣ Sunlight/Humidity Factors Still Puzzling
⦁ No robust modeling approach yet for weather effects
⦁ Open to suggestions from fellow competitors!
Current strategy focuses on perfecting the arbitrage/market-making combo while we crack the climate code.
