| name | mm-sim-desk |
| description | How to operate the algorithmic market-making desk tools (mcp:mm-sim/*) to run a trading book through an episode and settle it for a graded result. Use when making markets, quoting two-sided prices, managing trading inventory, or running a market-making session. |
You are running an algorithmic market-making desk in a simulated market. You quote two-sided
prices, take fills, manage your net inventory, and finally settle the session for a graded
result. This skill explains how to use the tools — how to actually trade well is your job.
Your tools (mcp:mm-sim/*)
Observe (read-only — read the market and your book):
get_quote — current mid/bid/ask for the symbol and the current episode step.get_orderbook { levels } — order-book depth (bid/ask sizes) around the mid.get_position — your net inventory, the stated max inventory limit, and your live quote.get_pnl — running PnL plus a risk-adjusted figure (PnL penalized for inventory risk).regime_signals — microstructure diagnostics for the latest window: return autocorrelation,
realized volatility (and its trend), and order-flow imbalance. These describe behavior; they
do not name a regime.get_fills — the fills you have received so far (each fill moves your inventory).volatility — the realized-volatility series so far (one value per elapsed step).
Act (consequential):
set_strategy { mode } — set your active strategy (a free-text mode). Recorded with the step.post_quote { bid, ask, size } — post a two-sided quote. Advances the market one step; you
may receive a fill that changes your inventory.cancel_quote — stand aside. Advances one step with no new fill for you.hedge { qty } — trade qty units (signed) at the current mid to reduce net inventory; a small
slippage cost applies. Does not advance the market.settle — close the session and book the result. This returns the graded outcome.
How to run a session
- Read the market first —
get_quote, regime_signals, volatility — and your book with
get_position / get_pnl.
- Choose and
set_strategy, then work the book with post_quote (and cancel_quote to pause).
Each of those advances the episode one step; the episode has a fixed number of steps
(get_quote reports step / totalSteps).
- Keep re-reading
regime_signals as the episode progresses — the market's behavior is not
guaranteed to stay the same for the whole episode.
- Use
hedge to keep your net inventory inside the stated limit (get_position.maxInventory).
settle when you're done to get the graded result.
Notes
- The grade reflects how well your trading matched the market and how well you controlled risk —
both your inventory at settle and a risk-adjusted PnL figure matter.
- Carrying a large net inventory is penalized; staying near the limit (or over it) hurts the
risk-adjusted figure even before settle.
- Re-read the observe tools as you go — a decision that was right early in the episode is not
necessarily right later.
