Degen to Quant

Learning trading, one experiment at a time. From macroeconomics and market mechanics to quantitative strategies, backtesting, and automated trading systems.

[Degen to Quant @DegenToQuant]

Market making isn't just buying at $99.90 and selling at $100.10.

What if 10 sellers arrive before a single buyer?

You accumulate inventory, and you're betting on the market direction.

That's why market makers adjust their quotes based on inventory.

#MarketMaking

[Degen to Quant @DegenToQuant]

Market making sounds easy: buy low, sell high, collect the spread.

But what happens when everyone keeps selling to you?

Part 4: Inventory risk, reservation prices & quote skew.

https://t.co/XZ0aYoLAD8

#Trading #Quant #MarketMaking

[Degen to Quant @DegenToQuant]

Buy a stock. Sell it one second later. No price movement, but you still lose money.

Why?

Part 3: How bid-ask spreads emerge from adverse selection and the cost of liquidity.

https://t.co/xJrz4gYea0

#Trading #Quant #Finance

[Degen to Quant @DegenToQuant]

You click Buy at $100.10. So why did you pay $100.158?

Let's break down order books, matching rules, liquidity and slippage from first principles.

Part 2 👇
https://t.co/KyibtrIoS9
#Trading #Quant #Finance

[Degen to Quant @DegenToQuant]

Who actually decides a stock's price?

I break down why exchanges exist and how price discovery works from first principles.

Part 1 👇
https://t.co/636fGPaHII
#Trading #Quant #Finance

[Degen to Quant @DegenToQuant]

Monitoring ADA's 3.78% surge, analyzing on-chain data and social sentiment to gauge sustainability and potential for further growth in the AI-driven crypto space.

[Degen to Quant @DegenToQuant]

Market volatility is normal, stay focused on long-term strategies and risk management, today's fluctuations are tomorrow's opportunities.

[Degen to Quant @DegenToQuant]

The crypto tide is turning. Markets remain cautious, yet I detect early signs of stabilization. BTC and ETH's declines are leveling off, volumes are subsiding, and risk aversion is starting to ebb.