Greetings, Ladies and Gentlemen! In one of our previous publications entitled “The Cancel-Order Failure: A Bad Headache for Market Makers”, we detailed a couple of our thoughts and experiments on how to reduce the occurrences of and the damages from adverse selections from a market maker’s perspective. The article originated…

Greetings, Ladies and Gentlemen! In one of our previous publications entitled “Internal Racing Conditions in Crypto Exchanges”, we provided detailed discussions about the general exchange server architecture, how racing conditions might happen among different components of the exchange server, and what the implications and impacts are for high frequency trading…

Greetings, Ladies and Gentlemen! In two of our previous publications entitled “The Private Information Edge: An Interesting Tale in High Frequency Trading” and “The Cancel-Order Failure: A Bad Headache for Market Makers”, we provided detailed discussions about how market makers could obtain private information edge and what techniques they could…

In one of our previous articles entitled “The Private Information Edge: An Interesting Tale in High Frequency Trading”, we presented an in-depth discussion about how market makers might gain some information edge over other people by making use of the time difference between the private data feed and the public…

Greetings, Ladies and Gentlemen! Hope that your investments were doing well during this uncertain period of time. We haven’t written on medium for a while because we haven’t found another interesting area to write about, not until recently. But we are back here and plan to write a few articles…

Greetings, Ladies and Gentlemen! Welcome back. Our previous article entitled “Hidden Liquidity Arbitrage: An Exotic Approach to Market Making” was the very last article in which we used FTX as real world examples. We are all very sad and shocked by the collapse of FTX. However, life and death are…

Greetings, Ladies and Gentlemen! Thank you for visiting us again. In the past several articles, we shared a couple of stories about our journey in high frequency trading mixed with laughs and tears. “Atomic Arbitrage: A Quantitative Study” showcased a very-successful strategy. “Alice in Wonderland: Applying Sandwich Arbitrage on Centralized…

Greetings, Ladies and Gentlemen! Hope that you had a great breakfast/lunch/dinner. In recent years with the proliferation of decentralized exchanges (DEXs), a new type of arbitrage has emerged and the community named it “sandwich arbitrage”. An interesting question triggered our thoughts long time ago: Can the same type of arbitrage…

Greetings, Ladies and Gentlemen! The digital asset industry is having an unprecedented tsunami for obvious reasons. The sudden collapse of FTX underlines how important it is for any investor to learn about the risks they might be taking from all angles. As an old Chinese proverb echoes: be prepared for…