Market Making Error Log
Market making error log guide for tracking fair-value, spread, inventory, state, risk, arithmetic, and communication mistakes.
Candidates building a deliberate market-making practice loop.
Keep categories simple
A useful error log needs only a few categories: fair value, spread, inventory, state tracking, risk, arithmetic, and communication.
Log the actual decision
Write the quote or trade you made, the state at the time, and what a better decision would have considered.
Concrete example
Error: quoted 49 at 51 after becoming long, but should have skewed lower or reduced bid size because inventory was near the limit.
Choose one next drill
Every logged error should point to a drill. If the mistake was inventory, do inventory-skew drills rather than another random mock.
Review cadence
Review the log after a small batch of games and look for repeated categories instead of overreacting to one mistake.
Common mistakes
Candidates often write vague notes like be faster. A useful error log names the exact decision failure.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.