Interview with Liquidity Miner David Salter¶
Three weeks have passed since the launch of the $ONE Makers liquidity bounty program in collaboration with Harmony Protocol. We've witnessed $ONE's trading volume soar beyond 130 million. Bounty hunters are vying fiercely to ascend our leaderboard.
In this edition, we spotlight David Salter, who currently holds the #6 rank (as of July 22, 2019) and has accrued approximately 1ETH in bounty rewards. Boasting a solid technical background, David has extensive experience in the telecommunications and finance sectors. His journey into cryptocurrency trading began in July 2017, and he now consistently achieves 0.5%-3% profit per trade using Hummingbot during his trading sessions.
Join us as we delve into David's experiences and gather insights from his trading strategies!
Disclaimer: This is not financial advice. The opinions expressed in this interview are solely those of the interviewee and do not reflect the views of hummingbot.io. Hummingbot does not guarantee or claim to ensure profits for all users.
David, how has your experience been so far with Hummingbot?¶
It's been excellent. The community is engaging, and the developers are highly skilled. The regular product updates every couple of weeks instill confidence in the product's evolution and its effectiveness. The prompt resolution of bugs and overall stability are key factors contributing to user satisfaction.
Since starting with Hummingbot, have you been profitable?¶
(Laughs) Somewhat, though not substantially. My initial expectation wasn't to make significant profits, as early stages in software development often come with challenges. My focus has been on learning and assessing Hummingbot's potential for future use.
Have you experienced any losses while using Hummingbot?¶
No, I've been quite cautious. I employ a kill switch and have deliberately kept my investment modest to better understand and learn the workings of the bot.
Could you share the strategies you employ in trading?¶
I utilize both pure market making and cross-exchange market making strategies. Through experimentation, I've found that stable coins perform better with pure market making. BAT-ETH, in particular, has shown reasonable success. I anticipate that the introduction of more flexible and custom strategies will further enhance the platform.
I aim for profits between 0.5% and 3%, as evidenced by both the profitability calculations from the history command and manual tracking. I monitor hourly trends, stopping the bot if the market drops sharply, and convert profits to USDT or USDC when the market peaks to secure gains.
How do you perceive the Hummingbot community?¶
The community on platforms like Discord is a mix of highly technical and less technical individuals. The support provided by the staff is remarkable and greatly appreciated.
Did you encounter any challenges during the setup or configuration process?¶
Being familiar with Docker from my professional experience, I found the setup reasonably straightforward. Understanding the file locations and log management is crucial for effectively running and updating the bot.
Do you think the current strategies are accessible for new users?¶
Initially, I started with version 0.6.0, and the advice was to begin with the cross-exchange market making strategy. However, I now believe that pure market making is more straightforward, especially for beginners dealing with a single exchange and two currencies.
Before discovering Hummingbot, I attempted to create my own trading bot. This experience taught me the importance of simplicity in strategy development.
Have you experimented with multiple orders in pure market making?¶
Yes, and I found that using a small number of multiple orders, like 2-3, and allowing the inventory to deplete occasionally, achieves a better balance than maintaining a larger inventory. It's a process of gradual learning and adaptation.
Besides TradingView and CryptoSignal, what other tools assist your trading?¶
I also use Cryptowatch for market analysis. For news, Feedly and News Now are my go-to aggregators, and Twitter serves as a good source of real-time updates.
Does news influence your trading decisions?¶
Not really. My initial foray into crypto in July 2017 was influenced by the hype cycle. I've since learned to detach emotionally and focus on technical analysis and specific projects I believe in.
What key lessons have you learned from trading with Hummingbot?¶
The primary lesson is to avoid greed. Crypto trading requires the same discipline and learning curve as any other asset trading. It's essential to find a balance that works for you, avoiding overextension in terms of time and financial investment.
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