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  • 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.

Hummingbot V1 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.