Strategies

The current release of Hummingbot comes with five strategies. Click on the strategy name for more information about it.

Strategy Description
Arbitrage Aims to capture price differentials between two different exchanges (buy low on one, sell high on the other).

This is a very low risk algorithmic trading strategy, making it a good choice for users wanting to try out Hummingbot with minimal risk.
Cross Exchange Market Making Also referred to as liquidity mirroring or exchange remarketing. In this strategy, Hummingbot makes markets (creates buy and sell orders) on smaller or less liquid exchanges and does the opposite, back-to-back transaction for any filled trades on a more liquid exchange.

This strategy has relatively lower risk and complexity as compared to other market making strategies, which we thought would be a good starting point for initial users.
Pure Market Making Post buy and sell offers for an instrument on a single exchange, automatically adjust prices while actively managing inventory.

This strategy has a relatively higher risk and complexity as compared to other strategies and we ask users to exercise caution and understand it completely before running it.
Discovery A preliminary strategy where Hummingbot examines different specified pairs across denoted exchanges and ranks them according to profitability.

This is currently a work in progress feature, and we recommend users instead test different pairs themselves. We are working on alternative solutions to finding trading opportunities.
Simple Trade This strategy is a simple strategy that executes a single limit/market order, buy or sell, after a specified time delay.

This strategy is intended to be a template and example to help familiarize developers with how the code base works for strategies, and as a basic building block for developing customized strategies.

The Hummingbot whitepaper provides more details about these strategies, as well as additional ones that we are working on for future versions of Hummingbot.

Note

These strategies are meant to be basic templates. We encourage users to extend these templates for their own purposes, and if they so desire, share them with the community.

For developers interested to create their own strategies, please see Developers: Strategies.