RMM, or Rebalancing Market Making, thrives in oscillating markets with mean reversions. In such environments, RMM serves to:
Assist users in navigating the challenges related to investment timing and quantity.
Enable users to effortlessly earn rebalancing premiums
However, it's crucial to note that RMM doesn't offer capital protection, and users might encounter losses during adverse market conditions. Despite this risk, similar to other mean reversion strategies:
If investors anticipate the market returning to the point where the strategy was initiated, continuing to hold onto the strategy could lead to substantial long-term returns