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Market makers provide liquidity to the market by quoting bid and ask prices for most of the time. The pricing in absolute terms is not as important as finding relative mispricing. The market microstructure is often used to develop trading strategies.

1 vote
1 answer
303 views

How to make markets for highly liquid assets?

I'm looking at the level-2 data of some ETFs and trying to figure out whether it's possbile to design a market making strategy. When looking at the data, I find these ETFs to be highly liquid: at the …
autoencoder's user avatar
1 vote

can Soft Actor-Critic reinforcement learning algorithms be used in real-time trading?

Overfitting depends on whether your agent can generalize to the real world of trading, not on whether it is model free or not. When you train your agent with historical market data, or simulated data, …
autoencoder's user avatar