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  • in Academy
  • 5 min read

Directional Trading with MACD and Bollinger Bands

Welcome to the inaugural post in our Strategy Experiments series, where we publish hypotheses, code, and performance analyses of live bot strategies.

We're thrilled to return to the Hummingbot blog with an exciting experiment: developing a crypto trading bot using the open-source Hummingbot platform. This bot employs an indicator-based directional strategy on the Binance Futures exchange, leveraging MACD and Bollinger Bands.

Sign up for Binance Futures using our Hummingbot referral code to receive a 10% fee rebate!

Introducing Strategy Experiments

As the first entry in our Strategy Experiments series, we aim to foster a collaborative environment where users can share their strategic insights with the community, enhancing growth and knowledge exchange among quantitative traders.

We invite everyone to contribute their Strategy Experiments, regardless of outcome, as there is valuable learning in each experience. Through sharing insights and discussing novel concepts, we aspire to cultivate a vibrant ecosystem for continual improvement and refinement of trading strategies.

Below is a detailed account of our first experiment. You can watch the accompanying video or read the following description.

  • in Academy
  • 8 min read

How To Get Good At Market Making

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by Lã Minh Hoàng

Hey guys, Wojak here!

I hope you're having a good day! Today, let's dive into the topic of how to get good at market making!

So, a little bit of introduction first! I am Wojak, an active member of the Miner community, and I have been competitively market making on the platform for the past year.

As we all know, market making is not simple. It's even harder to compete on the Hummingbot Miner platform. Getting good at market making requires knowledge of market dynamics and technical skills to scale up the business. In addition, your funds could be in grave danger if you don't have a good strategy to counter adverse market conditions.

Therefore, it would be great if a beginner could start their market making journey with a bag full of tips and tricks! Say no more; I'm here to help!

  • in Academy
  • 5 min read

A Systematic Approach to Liquidity Mining

ROI-Based Analytics and Simple Experiments

by Diego C

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The end goal of Liquidity Mining strategies is to outperform traditional staking and farming yields in DEFI/CEFI using your crypto assets.

If you HODL crypto assets in exchanges like Binance, Kucoin, Gate.io, or Ascendex and are not using them for trading, staking, or yield farming on these platforms, you are missing out on potential passive income from these assets.

This is where Liquidity Mining comes into play:

Advantages:

  • Higher ROI
  • No lockup period for your assets

Disadvantages (or so):

  • Requirement of a trading bot

For this, Hummingbot has already created a ready-to-use trading bot for the special purposes of liquidity mining, pure market making, arbitrage, etc.

  • in Academy
  • 3 min read

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.

Strategy Coding for Dummies

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by Ben Smeaton

Hi! I've been using Hummingbot for about a year on and off and wanted to give an overview on how to actually go about defining your own strategies. I got into market making because of a hobbyist interest in python coding and I was at that time tinkering with buying and selling shares automatically on the stock market which was incredibly unsuccessful.

Hummingbot is very accessible for hobby coders due to its mainly python-based code base and the fact that its all open source (Meaning you can play around with the code). It's pretty easy to scrape together your own strategies although it�s taken quite a lot of trial and error to get there myself! I wanted to give a basic idea of how you can go about doing this in the simplest way possible.

  • in Academy
  • 5 min read

Favorite Hummingbot Parameters from Trader Jazzy

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By Jazzy Obmaz

Hey guys, Jazzy here. I am officially helping my sister, Dalskie, operate the Hummingbot bots.

I'm not yet well-versed in crypto & trading, but I find it an intriguing and unbelievable world to live in. I am thrilled to have realized my long-time dream of working from home and being my own boss, so to speak. What a wonderful, life-changing opportunity this is for my family, especially financially. A huge thank you to Hummingbot!

Regarding our bot strategy, we are using the Pure Market Making (PMM) Strategy.

Okay, a reminder: this post is NOT financial advice, and any user following it will be solely responsible for his/her own results. Please don't blame me for any future losses you may experience. It's not because of me, Hummingbot, or the strategy; it's due to people panic selling. Period.

So, why the PMM strategy? Well, it works and it's simple. I have learned to use it even without a nerdy background. It's not that I am super smart or anything; it's thanks to the software or strategy itself. And of course, thanks to Dalskie.

I am now about to share the favorite parameters that I set for all bots. Roll up your sleeves, guys; let's get officially started.

  • in Academy
  • 8 min read

The Orders Must Flow from Trader Mobiwan

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by Mohammed Badran

In the fictional world of Dune, the most precious substance in the universe is the spice. The spice extends life, expands consciousness, and is vital to space travel.

Likewise, in the very real world of liquidity mining, the most precious substance in the market is the order. The order allows trading, enables market making, and is vital to liquidity rewards.

  • in Academy
  • 9 min read

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by Thomas Yit

Understanding and detecting market trends (or lack thereof) is an important skill for any trader, especially market-makers. As mentioned in the past two articles, like this one that talks about inventory risk, a market without a clear directional trend (aka moving sideways) is the market-maker’s best friend.

There are many ways to identify trends, either using fundamental analysis or technical analysis. In the following sections, I will further breakdown Fundamental and Technical Analysis and share some tools that hopefully will assist in building your framework for identifying trends.

Here is what you will find below:

  • What are Fundamental Analysis and Technical Analysis?
  • What is On-Chain Analysis?
  • How are they used on cryptocurrency markets?
  • How to use Technical Indicators to find the current market trend
  • in Academy
  • 15 min read

How to Trade Crypto

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by Tsalkapone

Crypto trading has been in a frenzy lately and many investors are looking for ways to participate in the crypto market. There are several ways to gain profit from cryptocurrency and various methods to do so. If you exclude crypto mining from the equation, which is a whole different method of crypto-acquiring process, the steps that one would need to follow to enter the crypto market are the following:

  • Make an account in a crypto exchange
  • Determine your trading method
  • Fund your account
  • Pick a token to invest in
  • Analyze marketing trends and indicators
  • Choose your strategy

In this topic we will elaborate each of the steps mentioned above presenting the main aspects that a new trader should take into consideration before making a decision.

  • in Academy
  • 4 min read

Common Hallmarks of Successful Miners

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by Kyle Mizui

Hummingbot Miner has a leaderboard that tracks the highest-paid miners on the platform. You might be wondering what the top miners are doing to earn thousands of dollars a week. This piece, resulting from discussions with some of the miners in the Eagle Club, aims to unveil what profitable miners do.

1. Picking Pairs

2. Managing Inventory Risks

3. Setting Up Guardrails

4. Constant Experimentation

5. Joining a Community