Abstract: To address the challenges posed by intermittent fluctuation of high-penetration distributed photovoltaic (DPV) integration to the secure and stable operation of the power system, a market mechanism and trading strategy is proposed for collaborative participation of source-grid-load-storage in distribution-side transactions. Firstly, the distribution-side distributed energy market was constructed, and a market mechanism was designed considering the characteristics of distributed energy. Secondly, an operation model of each entity was established considering electricity transaction among entities, and an optimization model for multi-agent cooperative operation of source-grid-load-storage was established based on Nash bargaining theory. Finally, the distributed alternating direction method of multiplier (ADMM) was employed to obtain bids and profits of all parties. Simulation results show that, after considering the market mechanism and the revenue distribution of the distribution system operator, the overall alliance market revenue increased by 29.8%, and the local PV consumption rate rose by 59.8%, verifying the effectiveness of the proposed market mechanism and trading strategy.