FMex BTC Perpetual Order-Book Market Making and Position Controls

Summary

This document describes a BTC perpetual strategy for FMex that repeatedly cancels open orders, reads ticker and position data, and places post-only limit orders at several price levels around the market. Its order placement changes with the current long or short position: larger positions prompt orders intended to reduce that side, while configured limits trigger market orders to trim excess exposure. It also describes pausing order placement when price moves outside a defined range and reacting to unusually large top-of-book size imbalances.

The material supplies parameters and implementation details, but no measured trading results. The author explicitly warns of substantial margin risk and possible total loss. The approach depends on exchange API behavior, queue priority, fills, and the accuracy of position controls; order-book size alone does not establish that a price move is likely. Frequent cancellations and repricing can also create execution costs or leave exposure unmanaged during fast markets. Treat it as a venue-specific design description rather than evidence of a durable mining or market-making edge.

Key ideas

• The strategy places multiple post-only limit orders around the BTC perpetual market and refreshes them on a polling loop.
• Order placement shifts according to current long or short exposure to encourage fills that reduce an oversized position.
• Configured position limits trigger market orders intended to trim excess exposure.
• The strategy pauses new quoting when price leaves a configured range and also checks for large top-of-book imbalances.
• No performance evidence is provided, and leverage, execution, and API failures can lead to severe losses.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.