One could create a program which hard-codes the point about which it oscillates (as well as some amount which it always eventually goes that far in either direction), and have it buy once when below, and then wait until the price is above to sell, and then wait until price is below to buy, etc.
The programs receive as input the prices which the market maker is offering.
It doesn’t need to predict ahead of time how long until the next peak or trough, it only needs to correctly assume that it does oscillate sufficiently, and respond when it does.
My understanding:
One could create a program which hard-codes the point about which it oscillates (as well as some amount which it always eventually goes that far in either direction), and have it buy once when below, and then wait until the price is above to sell, and then wait until price is below to buy, etc.
The programs receive as input the prices which the market maker is offering.
It doesn’t need to predict ahead of time how long until the next peak or trough, it only needs to correctly assume that it does oscillate sufficiently, and respond when it does.