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Capital Deployment with Hummingbot

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by Dalskie

I am delighted to share insights that have enabled us to expand our fund while providing a steady monthly income for our families. I extend heartfelt thanks to the Hummingbot Foundation & CoinAlpha for their support.

Though only a few in the Discord community know me, a brief personal introduction seems appropriate. My reticence in joining discussions stems from my shyness and limited knowledge in IT, crypto, and trading.

Previously, I worked as an architect in Singapore for over a decade before leaving my career to be with my child. The world of crypto presented an opportunity to fulfill my desire to spend more time with my family.

In April 2021, my husband discovered Hummingbot software, which enabled him to earn rewards by providing liquidity. This discovery reminded us of the early days when he mined ETH with graphic cards. However, I was unable to participate immediately as he was still perfecting his strategies.

The mid-year market crash of 2021 initially dampened our spirits, casting doubt on whether it was worthwhile to continue our investment in liquidity mining.

Our Perseverance and Strategy

Despite the challenges, we persevered. In August, my husband's mention of significant weekly rewards for the top earners on the leaderboard reignited my ambition. I frequently inquired about the capital required to reach our goal, which he estimated at an overwhelming 100K USDT.

Before delving further, please note that the following is not financial advice, and I cannot guarantee profitable outcomes or take responsibility for potential losses.

Our approach has been hands-on, learning through losses during market downturns. I am responsible for allocating USDT to each trading pair and selecting the campaigns we participate in on the Hummingbot Miner website.

The capital allocation ranges from $60 to $100 per pair, with adjustments based on market conditions. We operate 30-60 bots daily, aiming to deploy 70-80% of our capital in favorable markets for diversification. Conversely, we limit our investment to 30-40% in downturns, keeping a reserve for unexpected crashes.

The Challenges of Bot Management

Managing numerous bots is complex, especially during volatility. With no universal control, we must adjust each bot individually. Automation remains a goal for us, but we're learning and adapting.

We're grateful for the Termius app, recommended by winter#6467 on Discord, which facilitates remote bot management. Despite its cost, the benefits, including mobile access and team features, outweigh the expense.

Investing in HBOT Tokens

Recently, I've allocated 5-8% of our profits to HBOT tokens, learning from missed opportunities with other cryptocurrencies. I believe in the project's credibility and potential, and I'm committed to not letting another opportunity pass by.

A Vision for the Hummingbot Community

My hope is that as our community grows, so too will the 'pizza' of our shared success, allowing everyone to enjoy a larger slice. I view each member not as competition, but as a vital contributor to our collective growth.

In closing, while we haven't reached the 100K USDT mark yet, I want to affirm that liquidity mining with Hummingbot is accessible to all, not just the well-capitalized. Success is within reach for everyone.

May Hummingbot, HBOT, and Liquidity Mining bring you abundant financial prosperity.