Market Maker Strategy

Learn about the Market Maker Strategy for advanced trading techniques. This strategy focuses on insights into how market makers operate.

Published · Updated · Methodology: Mixed

Part of: Smart Money Concepts (SMC)

  • Methodology: Mixed
  • Content type: educational

Source video

Decoded from: Estrategia Market Maker - Trading Avanzado | Jueves De Pips by Johan Rincon Fx — watch the original

Strategy overview

A market maker is a participant who quotes both sides of a book and earns the spread while managing inventory risk — which is exactly why "market maker strategy" is one of the most ambiguous labels a retail chart trader can adopt. Read literally, it describes a role that depends on quoting obligations, exchange access and inventory management, none of which a discretionary trader has. Read the way retail usually means it, it inverts the position entirely: the market maker is not the role you take but the counterparty you model, and the strategy consists of anticipating where that counterparty's need to fill orders and hedge exposure will drag price next. The title names whose behaviour is being watched, not what the watcher does about it — and those two readings lead to very different trades.

This entry decodes "Estrategia Market Maker - Trading Avanzado | Jueves De Pips" from the Spanish-language channel Johan Rincon Fx. Two things in that title are worth reading carefully. "Jueves De Pips" is a recurring weekly segment name rather than a one-off release, which frames the material as an episode inside an ongoing teaching series where vocabulary tends to accumulate across instalments. "Trading Avanzado" positions it above introductory content, signalling a viewer who is assumed to already carry the basics — a framing choice that usually means definitions are referenced rather than rebuilt.

The record here is thin by nature, not by omission. Market-maker reasoning is built on order flow, liquidity pockets and where resting orders sit — descriptions of the book rather than transformations of the price series — so an empty indicator list is consistent with the frame instead of a gap in it, and the Mixed classification fits an approach that blends structural reading with discretionary judgement. No rule set was extracted from this video, so this page stays at the level of the idea. What would make either reading testable is the same missing piece in both: a stated, observable proxy for market-maker activity, fixed before the move rather than pointed at afterwards.

Topics

market maker strategy · advanced trading · trading strategy · tradingview strategy · pine script · mixed strategy · price action · trading education · forex strategy · crypto strategy

Frequently asked questions

What is a market maker strategy in trading?

The phrase carries two different meanings. Literally, market making is providing two-sided quotes and earning the bid-ask spread while managing inventory. In retail usage, a "market maker strategy" usually means the opposite side of that relationship: taking directional trades based on where a trader believes the market maker must move price to fill or hedge orders.

Can a retail trader actually make markets?

Not in the institutional sense. Genuine market making depends on exchange access, quoting privileges or obligations, low-latency infrastructure and continuous inventory management. Retail approaches that borrow the name are almost always directional and interpretive — they model the market maker rather than act as one.

What indicators and timeframe does this strategy use?

None are on record for this entry. Market-maker reasoning generally works from order flow and liquidity rather than chart overlays, and no rule set, settings or timeframe were extracted from the source video, so nothing of that kind is claimed here.

How can I evaluate a market-maker-style approach before trading it?

Turn the interpretation into something falsifiable first: define in advance what observable stands in for market-maker activity, write the entry and exit around that definition, then backtest it on historical data. Strategy Decoder extracts the structure of strategies from video sources where the rules can be recovered, so they can be evaluated and tested on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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