Simple Market Maker in Java

An implementation of a dummy market making bot which intends to be a starting point showing a possible way of integration with Quedex Java API. Before starting to work with this code, please read the documentation of our Java API.

The implementation of the bot MUST NOT be considered complete and ready for production use. The pricing algorithms, risk management, handling of WebSocket disconnects (lack thereof), etc. are just to illustrate a simple use case.

Running

To run the bot you need to have Java 8 installed (Oracle Java is recommended).

Standalone JAR

The following steps are for Linux (tested on Ubuntu 16.04):

Execute ./gradlew shadowJar from the main project directory (java-market-maker).
Jar will be created in java-market-maker/build/libs/ named java-market-maker-<version>-all.jar.
Copy the jar to a convenient location, place your quedex-config.properties and market-maker.properties (examples may be found in java-market-maker/src/main/resources) next to it.
Run the jar with java -jar java-market-maker-<version>-all.jar quedex-config.properties market-maker.properties. To exit hit CTRL + C.

From an IDE

Clone the repository.
Import the gradle project to your favourite IDE (tested with IntelliJ).
Fetch the dependencies (should happen automatically).
Rename the file quedex-config.properties.example in java-market-maker/src/main/resources to quedex-config.properties and fill in your details.
Rename the file market-maker.properties.example in java-market-maker/src/main/resources to market-maker.properties and change the configuration according to your liking.
Run the Main class.

Features

The market making bot:

places orders with configurable quantities on configurable number of levels,
has configurable spread,
follows a predefined Fair Price for futures (currently last price or mid - change the implementation in the MarketMaker class between LastFairPriceProvider and MidFairPriceProvider),
places option orders priced according to Black 76' model,
has configurable risk management - stops quoting one side of the order book when delta or vega limit exceeded,
enables risk monitoring based on greeks (delta, vega, gamma, theta), per position and in total,
cancels all orders when going down or on error.

Disclaimer

This document and the code presented in this repository does not constitute any investment advice. By running it, you are not guaranteed to earn any bitcoins (rather the opposite).

Contributing Guide

Default channel for submitting questions regarding the bot is opening new issues. In cases when information disclosure is not possible, you can contact us at [email protected].

Pull requests containing bugfixes are very welcome!