Market Making#063

Order-Book Imbalance Quote Skewing

This market-making strategy adjusts your buy and sell quotes based on which side of the order book is heavier. If there's little resting size opposing one side, you quote that side tighter and more aggressively; if a wall of orders is stacked against the other side, you back off and widen it. The edge is that on Polymarket's thin books, lopsided depth tends to predict which way price drifts next.

What you need to run it

WSS CLOB order-book feed with full depth
Sub-second requote loop via CLOB REST/signed orders
Imbalance signal model calibrated per market
USDC inventory across both outcome tokens

Where this applies

Markets on Polymarket where order-book imbalance quote skewing is the natural play:

Will Solana close above $300 on July 1, 2026?
Will the Chiefs win Super Bowl LXII?
Will Bitcoin be up at 4pm ET today?

Capabilities this demands

Low latencyCustom code / APIModel / quantData ingestion

At a glance

CategoryMarket Making

Requirements4

CapabilitiesLow latency, Custom code / API, Model / quant, Data ingestion

VenuePolymarket (CLOB, Polygon)

Build it

Related market making strategies

This is documentation, not advice. Poly Research & Robotics publishes how these strategies work because the method should be checkable — not as a recommendation to trade them. See the full strategy database (147 strategies) or the data resources directory.