Experiment with different combinations of order spread and size.
Use paper trading to experiment with various strategy configurations before risking real capital.
Set wider spreads. Unless you are Binance VIP 9+, you are at a disadvantage compared to other market makers at lower spreads because of trading fees. Starting closer to the max spread per side in each market (see Active Programs).
Another way to look at it is that your bot shouldn't be trading all the time. If you're constantly filling orders, it's a sign that your spreads might be too tight. It is suggested to watch the order book on Binance while your bot is running and counting how much volume is ahead of you in the order book.
Set order_levels
to more than 1. This allows you to tailor how your orders are configured. For example, you can have a smaller amount at 0.5% spread and a larger amount at 0.9% spread.
Use the Inventory Skew feature - this keeps your inventory position more stable over time.
For users using multiple orders + inventory skew, we found that reducing the inventory_range_multiplier
below 1.00 helps to dampen volatility. Because the total order size is used to set a band around the target percentage, using multiple orders inflates that band. Reducing inventory_range_multiplier
to below 1 will narrow the band (Target base asset range in the status output).
Increase the filled_order_delay
parameter to 60 seconds or more. This prevents your bot from buying or selling a lot when the market is steeply trending in one direction.