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Executor Handlers

Executor Handlers in Hummingbot

Executor Handlers in Hummingbot act as the supervisory layer over Executors, coordinating between the strategy’s Controllers and the individual Executors. By handling the execution logic, they enable Executors to focus on their specific tasks, like managing positions for profit-taking and loss mitigation, in line with the broader strategy directives.

Currently, Hummingbot offers two types of Executor Handlers tailored for different strategy approaches: MarketMakingExecutorHandler and DirectionalTradingExecutorHandler, based on the ExecutorHandlerBase class.

You shouldn't need to modify these handlers to use them in your strategies, but understanding how they function is useful.

Market Making Executor Handler

The MarketMakingExecutorHandler class is designed for market-making or grid strategies. It facilitates the simultaneous management of multiple order levels, each potentially with its own Executor, allowing for a multi-layered market-making approach.

Key Features

  • Manages multiple Executors for different order levels in market-making strategies.
  • Integrates with perpetual markets, handling position management including setting leverage and position mode.
  • Implements cooldown conditions to prevent Executors from re-entering the market too quickly after a position closes.
  • Offers functionality for early stopping of Executors based on custom conditions.
  • Creates new Executors when the market conditions meet the strategy’s entry criteria.

Directional Trading Executor Handler

The DirectionalTradingExecutorHandler class is tailored for directional trading strategies. It operates based on the market signals identified by the Controller to open or close long/short positions, or place buy/sell orders.

Key Features

  • Manages Executors in response to market signals for directional trading.
  • Compatible with perpetual markets, facilitating the setting of leverage and position mode.
  • Monitors and responds to market conditions, creating Executors when a directional signal is detected.
  • Implements early stop conditions for Executors to close positions based on the strategy’s risk parameters.