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Using Binance with Hummingbot

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Introduction

Binance is the world’s largest crypto exchange by trading volume, with $76 billion daily trading volume on Binance exchange as of August 2022, and 90 million customers worldwide.

This section provides a step-by-step guide that helps you use Hummingbot with Binance, starting with generating exchange API keys and adding them to Hummingbot. All information is sourced from the exchange website and other content.

Using Hyperliquid Vaults with Hummingbot

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Introduction

Hyperliquid is a cutting-edge trading exchange that has revolutionized the way individuals engage with digital assets. This exchange is renowned for its introduction of Hyperliquid Vaults, a novel concept that allows both individual traders to optimize their trading strategies and earn profits from their investments.

This guide is designed to walk users through the process of utilizing Hummingbot, an automated trading bot, to trade on Hyperliquid Vaults, thereby automating their trading activities. By integrating Hummingbot into your trading routine, you can take advantage of its sophisticated algorithms to automate trade execution, manage risk, and potentially increase your profitability without the constant need for manual oversight. Whether you're aiming to optimize your trading strategy or simply wish to diversify your investment approach, this guide will provide you with the necessary steps and insights to effectively use Hummingbot on the Hyperliquid platform.

Using Polkadex with Hummingbot

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Introduction

Polkadex is a state-of-the-art decentralized exchange on the Polkadot network, offering a seamless blend of the high-speed trading typically found on centralized platforms with the security and autonomy of a DEX. This guide walks through setting up a Polkadex wallet and initiating trading with Hummingbot.

By leveraging Polkadex and Hummingbot, traders can enjoy a high-performance, secure, and automated trading experience without the custodial risks, making it an ideal platform for both novice and seasoned traders in the cryptocurrency ecosystem.

Using Vega Protocol with Hummingbot

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Introduction

Welcome to our user tutorial on integrating the power of Vega Protocol with Hummingbot for your trading journey. In this guide, we'll walk you through the detailed steps required to seamlessly set up a Vega Wallet, link it with Hummingbot, and embark on your trading adventures.

Whether you're new to automated trading or looking to leverage Vega Protocol's decentralized trading capabilities, this guide is designed to provide you with all the information you need to get started. Let's dive into the world of blockchain-based trading with Vega Protocol and Hummingbot, and unlock new possibilities in your trading strategy.

Docker Installation Guide

Introduction

Welcome to the Hummingbot Docker Installation Quickstart Guide

This guide is tailored to introduce you to the process of installing and deploying Hummingbot using the deploy-examples repository, which leverages Docker Compose for deployment. You will learn step-by-step how to set up and run Hummingbot in a Docker environment, enabling you to efficiently manage and scale your trading strategies.

In the above video, Fede goes through the different ways to deploy Hummingbot using the deploy-examples repo, but in this tutorial we will focus on using the simple_hummingbot_compose example which is a good starting point for beginners. Once you are familiar with the basics then you can explore using the other deploy examples and choose one which meets your needs.

What You Will Learn

  1. Install Docker: This guide provides a straightforward approach to installing Docker, offering step-by-step instructions to ensure a successful setup for both beginners and experienced users.

  2. Hummingbot Interface: Uncover the essentials of the Hummingbot interface, including layout and navigation, to efficiently manage your trading bots.

  3. Running a Script: Learn how to effectively launch and orchestrate multiple trading bots, with insights into running scripts for optimal performance.

  4. Connecting API Keys: Master the crucial process of integrating API keys with Hummingbot, setting the stage for seamless live trading across various exchanges. This guide provides essential insights and step-by-step instructions to ensure secure and efficient API key setup for enhanced trading experiences.

Let's Begin!

With all the groundwork in place, it's time to unlock the full capabilities of your trading tools. Let's dive in!

Set up Docker

Docker Installation Guide - Installation

Prerequisites

Installing Docker

To use Docker, it must first be installed on your system. Follow the instructions below according to your operating system.

For Linux and Windows Users
  • Note for Windows Users: Ensure that WSL2 is installed to access an Ubuntu terminal.
  • Execute the following commands in your terminal:
curl -fsSL https://get.docker.com -o get-docker.sh
sudo sh get-docker.sh
sudo usermod -aG docker $USER
For Mac Users (Both Intel and Apple Silicon)

Once Docker is installed on your system, you're ready to move on to using it with the deploy-examples repository.

Download the deploy-examples repository

In your terminal, clone the deploy-examples repository:

git clone https://github.com/hummingbot/deploy-examples

Alternatively, you can download just the docker-compose.yml file without the entire deploy-examples repo using this command:

curl -LO https://github.com/hummingbot/deploy-examples/raw/main/simple_hummingbot_compose/docker-compose.yml

Switch to the simple_hummingbot_compose folder

The deploy-examples repository contains several folders, each with different compose files for various scenarios (e.g., using autostart, Hummingbot with Gateway, etc.). For now, we will focus on the simple_hummingbot_compose example.

Use the following command to change your current working directory to the correct folder:

cd deploy-examples/simple_hummingbot_compose

Start the Docker Compose File

Use the following command to create the simple_hummingbot_compose Docker container:

docker compose up -d

This will start the container in the background and we'll need to attach to it to be able to send commands to it. Run the following command below:

docker attach hummingbot

We should now have Hummingbot running and in the next section we'll go over the Hummingbot Interface

Hummingbot Interface

Docker Installation Guide - User Interface

Hummingbot operates through a Command Line Interface (CLI), a text-based system ideal for automated cryptocurrency trading. Unlike graphical interfaces, CLIs rely on text commands to function. Let's dive into how to use it effectively.

Create a Password

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If you are using Hummingbot for the first time, the system will prompt you to create a password. There are no character requirements, although we recommend using a strong password for additional security.

The password in Hummingbot encrypts sensitive data such as API keys, secret keys, and wallet private keys. For security reasons, the password is only stored locally in encrypted form, and we do not have access to it.

After you set a password you should now be in the main Hummingbot screen

User Interface Guide

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The CLI is organized into several key areas:

  • Input Pane (Lower Left): Here, you input your commands.

  • Output Pane (Upper Left): This displays the results of your commands.

  • Log Pane (Right): Here, you can view log messages.

  • Top Navigation Bar: Shows the version, current strategy, and strategy file.

  • Bottom Navigation Bar: Displays trades, CPU usage, memory, threads, and duration.

For a more in-depth look, visit User Interface

Useful shortcuts

  • CTRL + P + CTRL + Q - This exits the bot but keeps it running in the background

  • CTRL + X - Exits config

  • Double CTRL + C - Exits the bot completely

  • CTRL + V to paste in Hummingbot does not work, to paste try one of the following commands:

    • CTRL+SHIFT+V

    • SHIFT + RMB (right-mouse button)

    • SHIFT + INS

Next, let's learn about running a simple PMM script in Hummingbot

Running a Script

Docker Installation Guide - Running a Configurable Script

Simple PMM (config) Example

Let's use the simple_pmm_example_config.py script. This is a configurable script which will create orders for a token pair in paper trading mode. For configurable scripts, the first step is to create a config file. Here's how to create one:

create --script-config simple_pmm_example_config

When you use the create --script-config and press SPACE Hummingbot will display available scripts in the scripts folder, as shown below.

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If you don't see any scripts under the /scripts folder, run these commands in the terminal to make them appear:

sudo chmod -R a+rw ./hummingbot_files
docker cp hummingbot:/home/hummingbot/scripts-copy/. ./hummingbot_files/scripts/

Select the simple_pmm_example_config.py script and press ENTER.

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You will then be guided to configure the settings. At this stage, you may modify the options or simply hit ENTER to accept the default values. After finalizing the configuration, name the config file and press ENTER to save it.

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Once the config is saved we can now launch the script. Enter the command below to launch the script!

start --script simple_pmm_example_config.py --conf conf_simple_pmm_example_config_1.yml

Note that the autocomplete will popup after pressing SPACE after both the --script and --conf parameters so you can just select the correct script / config file from the list and then press ENTER

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After pressing ENTER you should be able to see activity in the log pane. Use the status command for more details or press CTRL + S. It should resemble the screen below.

status

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To stop the script from running, type the stop command in the Hummingbot terminal

stop

Download Order Book Data

Let's try another example and this time we'll try to fetch order book data using the download_order_book_and_trades.py script.

This script is pre-configured to download the "ETH-USDT" & "BTC-USDT" pairs using Binance paper trade.

Use the following command in the Hummingbot terminal to start the script:

start --script download_order_book_and_trades.py

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Once you press ENTER, the script will start running and downloading the order book information. Give this a few minutes as it will take some time to download the data.

Initially, the log pane may display binance is not ready. Please wait... while downloading. You can ignore this message.

After a few minutes check the hummingbot_files/data folder and you should see the following text files:

binance_paper_trade_BTC-USDT_order_book_snapshots_2023-xx-xx.txt
binance_paper_trade_BTC-USDT_trades_2023-xx-xx.txt
binance_paper_trade_ETH-USDT_order_book_snapshots_2023-xx-xx.txt
binance_paper_trade_ETH-USDT_trades_2023-xx-xx.txt

Back in the Hummingbot terminal, if the log pane still shows binance is not ready. Please wait.... just send the stop command to halt the bot.

Congratulations! You've successfully run your first two scripts. Next, we'll learn how to connect API keys for live trading.

Connecting your API Keys

Docker Installation Guide - Adding API Keys

While paper trading in Hummingbot doesn't require API keys, live trading does. This guide will help you connect your exchange API keys to Hummingbot for real-time trading.

Generate API Keys

First, you need to generate API keys from the exchange you wish to connect. Each exchange has its own setup process.

In this example, we'll connect Binance API keys. Head over to the Binance Connector Docs for instructions on how to generate API keys for Binance.

Check the Connectors list for a list of exchanges that are currently integrated with Hummingbot

Warning

Please always keep your API keys secure and do not share them.

Connect API keys to Hummingbot

In the Hummingbot run the connect command for the exchange we want to connect to. In this case for Binance use the command below -

connect binance

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You should get a prompt to enter in your API keys - you can use the following commands below to paste them into the Hummingbot terminal. Note that CTRL + V doesn't work and you'll get a Pyperclip error in the log panel if you try to use it.

  • CTRL+SHIFT+V

  • SHIFT + RMB (right-mouse button)

  • SHIFT + INS

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After entering your API keys you should get a success message if everything went through okay. You can also confirm by running the connect command again and check that both columns next to Binance are showing Yes.

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Now your Binance API keys are connected to Hummingbot. Repeat these steps for other exchanges as needed.

What's Next?

If you're serious about delving deeper and enhancing your trading bot capabilities, consider Botcamp, a professional training program for market makers and algo traders. This comprehensive program combines new content modules and live sessions each month to help you understand the intricacies of the market. You'll learn to create and backtest market making strategies, directional trading, and other strategies using Dashboard.

Most importantly, you'll gain hands-on experience with Bot Battles, Botcamp's monthly bot trading competitions. It's a great opportunity to measure your progress and learn from others. In addition, joining the Botcamp community allows you to expand your professional network, form teams to compete together, and share insights.


Thank you once again for joining us on this journey. I hope the knowledge you've gained here serves you well in your trading endeavors. All the best with your future trading bot projects!

Using Dashboard to Deploy and Backtest Strategies

Introduction

Welcome to the Hummingbot Dashboard Quickstart Guide!

While Hummingbot started as a simple CLI-based market making bot in 2019, today it has evolved into a flexible platform that helps you create, backtest, optimize and deploy all types of algorithmic trading strategies.

This guide shows you the basics of how to use the new Hummingbot Dashboard application to create and deploy strategies at scale. Whether you're a seasoned trader or just starting out, this tutorial will provide you with the tools and knowledge to maximize your trading potential.

What You Will Learn

  1. Set up Dashboard: Understand the initial steps to get Dashboard up and running.
  2. Managing Credentials: Safeguard and manage your access credentials for optimal security.
  3. Using the Master Bot Profile: Dive deep into how to launch multiple bots and effectively orchestrate them.
  4. Managing Bots: Explore the process of executing and assessing bot strategies within the Hummingbot Dashboard for optimized trading.
  5. Analyzing Bot Performance: Grasp the fundamentals of formulating a robust trading strategy and fine-tuning it for maximum efficiency and profitability.
  6. Backtesting and Optimization: Dive into the intricacies of evaluating the effectiveness of your strategies using historical data, ensuring they align with your trading objectives.
  7. Deploying Strategies: Gain comprehensive insights into the process of testing strategies against past market data (backtesting), and optimizing them based on the results to achieve optimal trading outcomes.
  8. Conclusion and Next Steps: Familiarize yourself with the steps to roll out multiple trading configurations seamlessly, ensuring a smooth transition from testing to live trading environments.

Let's Begin!

With the foundation set, it's time to harness the full potential of the Dashboard. Let's dive in!

Set up Dashboard