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.
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.
Let's start by revisiting the core equations from the Avellaneda-Stoikov paper:
Hello Hummingbot Community Developers!
Today we are happy to announce that we will be part of the upcoming Open Defi Hackathon in May!
The Open Defi Network is “a global initiative to develop the decentralized financial ecosystem and advance the collaboration of DeFi projects across borders and blockchains.”
As a part of the cryptocurrency space, we strongly believe in the power of decentralization and community-driven projects.
Welcome back to the Hummingbot Academy!
The latest Hummingbot release (0.38) introduces an exciting strategy based on classical academic market-making models. This article will delve into the Avellaneda & Stoikov paper from 2008 and its implementation in Hummingbot.
For those who enjoy in-depth scientific papers, the original publication is readily accessible online or directly here.
Hummingbot is a modular framework for building highly reliable, and high performance trading bots. While the official Hummingbot package already allows you to run high frequency trading strategies on a number of cryptocurrency exchanges, the underlying framework is freely extensible for building custom strategies, custom market connectors, and more.
In this blog post, we will discuss some of the key architectural features in Hummingbot, and the rationales behind their designs.
We're thrilled to announce a new partnership with Perpetual Protocol, an Ethereum-based decentralized exchange of perpetual contracts for any asset. With this partnership, Hummingbot users will be able to earn arbitrage profits from reconciling price differences between Perpetual markets and spot markets.
The Perp connector is included with the v0.37.0 release of Hummingbot that will be shipped on March 8, 2021, along with a new perpetual-to-spot arbitrage strategy.
Since we launched the perpetual market making strategy, a new strategy to exploit arbitrage profits between perpetual and spot markets has been highly requested by our community. This new strategy allows users to arbitrage price differences between the perpetual contracts exchanges, such as perp.exchange powered by Perpetual Protocol and Binance Futures, and other Hummingbot supported spot exchanges such as Binance, Coinbase Pro, and Huobi.
The Hummingbot Miner platform has been live for one year! When we launched Hummingbot Miner on March 3, 2020, we kicked off a new and sustainable way for issuers to source liquidity for their tokens. It was a data-driven approach for rewarding a decentralized group of market makers for providing liquidity and harnessing the collective trading power of communities.
We are thrilled that over the past year, the platform has provided liquidity for 18 different token issuers, with 1,622 unique miners participating and earning rewards. Our decentralized market making community created order book depth and liquidity that resulted in $837mm of traded volume across the various liquidity mining campaigns!
During the past nine months since we launched liquidity mining, we witnessed great participation from our ever-increasing miner community. Together, we’ve reached one milestone after another. In this post, we introduce one of our top liquidity miners, MrBig1964, to you. Hope you can learn something from him!
MrBig1964 is one of our Eagle Club members, who has been trading cryptocurrency and Forex for years. In his interview, he emphasizes the compounding effect of daily small profits (0.6-0.7% in his case) and suggests fellow traders do stay calm and do not be greedy.
Disclaimer: Not financial advice. All views expressed in this interview are the interviewee’s and do not represent the opinions of hummingbot.io. Hummingbot does not guarantee nor claim to guarantee profits.
Over the past few weeks, we have seen great participation from NEM liquidity miners and exceptional XEM token performance. With liquidity mining, NEM is able to introduce the project to a broader trader community and motivate individual traders to promote its token liquidity. During a little over 1 month of the liquidity mining campaign period, 142 distinct individuals have participated and earned rewards as of December 15th, 2020. They accounted for as much as 11% of total XEM trading volume on Binance, and as much as 50% for the XEMETH trading pairs.
This result has demonstrated Hummingbot liquidity mining’s ability to not only help long-tail token projects graduate from its league but also well serve and add great value to Top 20 projects like NEM. Both the Hummingbot and NEM communities feel excited about the result, and will continue working hard on the ongoing success of the campaign.
We're incredibly excited to announce a new partnership with Balancer, a leading Ethereum decentralized exchange, that allows Hummingbot users to earn arbitage profits from reconciling differences between Balancer and other exchanges.
The Balancer connector is included with the v0.33 release of Hummingbot that ships today, along with a new amm-arb strategy.
This new strategy allows allows users to arbitrage price differences between automatic market maker (AMM) protocols like Balancer and other Hummingbot supported exchanges such as Binance, Coinbase Pro, and Huobi.