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Hummingbot Docker Quickstart Guide

Introduction

This brief guide will introduce you to the process of installing and deploying Hummingbot using Docker. You will learn step-by-step how to set up Hummingbot using Docker Compose, a tool for defining and running multi-container Docker applications, and then run your first algo trading strategy!

What You Will Learn

  1. Install Docker: Step-by-step instructions to installing Docker and Docker Compose,

  2. Hummingbot Interface: Uncover the essentials of the Hummingbot interface, including layout and navigation.

  3. Running a Script: Learn how to run an algo trading strategy as a Hummingbot script.

  4. Connecting API Keys: Master the crucial process of integrating API keys with Hummingbot, ensuring secure API-based bot trading across various exchanges.

  • 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.

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.

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.

Tips for Handling Different Market Conditions

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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.

  • in Academy
  • 9 min read

Basic Concepts of Crypto Trading

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Order Book

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.

Hummingbot Gateway Architecture - Part 2

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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.

Introduction

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.

Hummingbot Gateway Architecture - Part 1

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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.

Introduction

Hummingbot Gateway is a software that allows Hummingbot to connect to decentralized exchanges like Uniswap.

The Hummingbot Gateway is a separate piece of software apart from Hummingbot, because software libraries needed for accessing decentralized exchanges, e.g. the Uniswap Smart Order Router, are usually not written in Python. The gateway provides Hummingbot access to these decentralized exchanges with their differing software stacks, by exposing a secure and unified API interface to Hummingbot. This API interface can also be used by other potential gateway clients, such as proprietary trading software.

Hummingbot Architecture - Part 2

Introduction

In the last article - Hummingbot Architecture - Part 1 - of this series, we've discussed the design motivations behind Hummingbot, the clock and the market connectors. Today, we'll be discussing the architecture behind trading strategies - the very component that decides Hummingbot trades with your money. We will also discuss how you can diagnose problems and debug Hummingbot in live trading.

Technical Deep Dive into the Avellaneda & Stoikov Strategy

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In our previous blog post, we introduced the new avellaneda_market_making strategy. This time, we delve deeper into the mathematical aspects of this strategy. We aim to explain how we adapted the original Avellaneda-Stoikov model for the cryptocurrency market and simplified the calculation of key parameters, known as greeks.

This article mathematically substantiates the assumptions and calculations that made the authors' model more suitable for Hummingbot traders.

Original Model and Our Proposed Extensions

Let's start by revisiting the core equations from the Avellaneda-Stoikov paper: