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.
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:
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:
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.
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
by Owen Hobbs
In numerous ways, markets can resemble the waves of the ocean. Both have peaks, bottoms, and ultimately return to a midpoint or sea level. The approach one takes to navigate the waves is largely dependent on the weather or market conditions affecting them. In this article, we are going to discuss a few of the ways someone using Hummingbot could navigate the various market conditions such as ranging, uptrend, and downtrend.
by Kyle Mizui
Trading is a rewarding and risky activity. If you’re new to hummingbot, welcome! You’re in the midst of a mature community that has found market making to be both exciting and profitable in the long term. That might be you, but before you go all-in and mortgage your house in crypto trading, here are top seven pitfalls and misconceptions that all Hummingbot beginners face. This article works best if you’ve at least spent some time taking Hummingbot on a test drive, but it’s by no means a requirement. Read it well, as they say, prevention is better than cure, and a dollar saved is a dollar earned.
In this guide, we will delve into various strategies and configurations you can employ using Hummingbot:
Discover the range of strategies available in Hummingbot by visiting the Hummingbot Foundation’s documentation site: Hummingbot Strategies
Learn about the global configurations applicable to most strategies: Global Configurations
Cross-exchange market making is a maker-taker strategy that involves conducting market-making trades between two markets: it involves placing limit orders in a market with lower liquidity and larger spreads, and placing market orders in a market with higher liquidity and smaller spreads whenever the limit orders are filled.
Arbitrage and cross-exchange market making are often considered "risk-free" because these strategies significantly reduce the main risk associated with market making: inventory risk. This characteristic makes these strategies more beginner-friendly. However, the primary risk that persists is execution risk.
This article will cover: 1. The fundamental principles of cross-exchange market making 2. The distinctions between cross-exchange market making, arbitrage, and pure market making strategies 3. The appropriate circumstances for employing this strategy
An order book is the list of orders that an exchange uses to record the interest of buyers and sellers for a particular financial market. A matching engine uses the book to determine which orders can be fully or partially executed.
Example of an order book on AscendEx where the prices in red indicate sell orders and the prices in blue indicate buy orders.
by Martin Kou
Update (February 2023): Hummingbot Gateway v2 is now available as a standalone Github repository: https://github.com/hummingbot/gateway. Most of the functionality listed in this post has now been implemented, and we welcome contributions from the community.
In Part 1 of this series, we have discussed the architectural changes we are making to Hummingbot Gateway v2 to improve its robustness and reliability, to bring it up to the service quality level expected of production trading systems.