marketmaking

Yesterday I shared my first results.
Today — things got real 👇
📊 What changed:
❌ Before:
• 0 trades
• Wide spreads → no execution
• Bot looked “smart”… but did nothing
✅ Now:
• 20+ trades in session
• Balanced BUY/SELL cycles
• Real market interaction
But here’s the twist…
💰 PnL Result:
• Trade PnL: positive
• Total PnL: slightly negative
🤔 Why?
Because of one brutal truth:
⚠️ Fees > Edge
Even with perfect execution, small spreads (0.1–0.2%) get eaten by fees.
🔥 Biggest realizations so far:
1️⃣ A bot that doesn’t trade = useless
2️⃣ A bot that trades too cheap = also useless
3️⃣ Execution is step 1… but EDGE is step 2
📉 Market context:
• SOL moving in tight range (~82–84)
• Low volatility → harder to capture profit
• High competition → spreads must be precise
🧠 What I changed:
✔ Removed artificial spread distortion
✔ Fixed inventory skew behavior
✔ Increased effective spread (0.25%+)
✔ Focused on PnL per TIME, not per trade
📊 Current goal:
👉 Fewer trades
👉 Higher profit per cycle
👉 Positive net PnL after fees
💡 My current hypothesis:
“More fills ≠ more profit
Better edge + controlled fills = profit”
🤔 Question for traders & bot runners:
What matters more for you?
1️⃣ High frequency (many trades, small edge)
2️⃣ Lower frequency (fewer trades, higher edge)
📌 Next step:
Testing dynamic spreads based on volatility (ATR-based)
Will update results soon 👇
#Hummingbot #MarketMaking #SOL #CryptoTrading #AlgoTrading

I’ve been running a market making bot on Binance with a small account (~$600) and here’s the honest truth 👇
📊 What actually happened:
Several sessionsSome BUY/SELL cyclesNet PnL ≈ breakeven to small profitBut here’s the interesting part…
📉 SOL dropped ~2%
🤖 My bot: almost flat
💡 So yeah… NOT losing money in a downtrend already feels like a win.
⚠️ Biggest mistakes I made (and I see many people repeating):
❌ Spread too wide → 0 fills → “dead bot”
❌ Inventory skew blocking BUY → only selling
❌ Order size too small → Binance rejects bids
👉 Result: bot looks “smart”… but does NOTHING
🔥 What actually started working:
✔ Spreads ~0.6% – 0.8%
✔ Inventory target ≈ 50%
✔ Focusing on PnL per TIME, not per trade
💣 Biggest realization:
A bot that doesn’t trade = worst strategy possible
Even worse than taking small losses.
🤔 Question to those running bots:
Do you prefer:
1️⃣ Wider spreads → higher profit per trade but fewer fills
2️⃣ Tighter spreads → more trades but smaller edge
📊 Right now I’m leaning toward:
“More fills > perfect trades”
But still testing…
Anyone here running Hummingbot or other MM bots on Binance?
Curious to hear real experiences 👇
#Hummingbot #MarketMaking #SOL #CryptoTrading #Binance