Advanced Market Making

These advanced parameters give you more control over how your bot behaves. Please take the time to understand how these parameters work before risking extensive capital with bots that utilize them.

How to Configure

There are two ways to configure these parameters:

  1. Run config to see the current strategy settings. Run command config [parameter_name] to reconfigure the parameter.
  2. Outside of the Hummingbot client, you can edit the strategy configuration file directly using a text editor and then import it later.

Advanced Configuration Parameters

Feature Parameter Prompt Definition
Order Levels order_levels How many orders do you want to place on both sides? The number of order levels to place for each side of the order book.
Order Levels order_level_amount How much do you want to increase or decrease the order size for each additional order? The size can either increase(if set to a value greater than zero) or decrease(if set to a value less than zero) for subsequent order levels after the first level.
Order Levels order_level_spread Enter the price increments (as percentage) for subsequent orders? The incremental spread increases for subsequent order levels after the first level.
Inventory Skew inventory_skew_enabled Would you like to enable inventory skew? (Yes/No) Allows the user to set and maintain a target inventory split between base and quote assets.
Inventory Skew inventory_target_base_pct On [exchange], you have [base_asset_balance] and [quote_asset_balance]. By market value, your current inventory split is [base_%_ratio] and [quote_%_ratio]. Would you like to keep this ratio? Target amount held of the base asset, expressed as a percentage of the total base and quote asset value.
Inventory Skew inventory_range_multiplier What is your tolerable range of inventory around the target, expressed in multiples of your total order size? This expands the range of tolerable inventory level around your target base percent, as a multiple of your total order size. Larger values expand this range.
Filled Order Delay filled_order_delay How long do you want to wait before placing the next order if your order gets filled (in seconds)? How long to wait before placing the next set of orders in case at least one of your orders gets filled.
Hanging Orders hanging_orders_enabled Do you want to enable hanging orders? (Yes/No) When enabled, the orders on the side opposite to the filled orders remains active.
Hanging Orders hanging_orders_cancel_pct At what spread percentage (from mid price) will hanging orders be canceled? Cancels the hanging orders when their spread goes above this value.
Minimum Spread minimum_spread At what minimum spread should the bot automatically cancel orders If the spread of any active order fall below this param value, it will be automatically cancelled.
Order Refresh Tolerance order_refresh_tolerance_pct Enter the percent change in price needed to refresh orders at each cycle The spread (from mid price) to defer order refresh process to the next cycle.
Price Band price_ceiling Enter the price point above which only sell orders will be placed Place only sell orders when mid price goes above this price.
Price Band price_floor Enter the price below which only buy orders will be placed Place only buy orders when mid price falls below this price.
Ping Pong ping_pong_enabled Would you like to use the ping pong feature and alternate between buy and sell orders after fills? Whether to alternate between buys and sells.
Order Optimization order_optimization_enabled Do you want to enable best bid ask jumping? (Yes/No) Allows your bid and ask order prices to be adjusted based on the current top bid and ask prices in the market.
Order Optimization ask_order_optimization_depth How deep do you want to go into the order book for calculating the top ask, ignoring dust orders on the top (expressed in base asset amount)? The depth in base asset amount to be used for finding top bid ask.
Order Optimization bid_order_optimization_depth How deep do you want to go into the order book for calculating the top bid, ignoring dust orders on the top (expressed in base asset amount)? The depth in base asset amount to be used for finding top bid.
Add Transaction Costs add_transaction_costs Do you want to add transaction costs automatically to order prices? (Yes/No) Whether to enable adding transaction costs to order price calculation.
External Price Source price_source_enabled Would you like to use an external pricing source for mid-market price? (Yes/No) When enabled, allows users to use an external pricing source for the mid price.
External Price Source price_source_type Which type of external price source to use? (exchange/custom_api) The type of external pricing source.
External Price Source price_source_exchange Enter external price source exchange name Name of exchange to be used for external pricing source.
External Price Source price_source_market Enter the token pair on [price_source_exchange] The trading pair for the price source exchange.
External Price Source price_source_custom Enter pricing API URL An external API that returns price.
External Price Source take_if_crossed Do you want to let your maker orders match and fill if they cross the order book? Take order if they cross orderbook when external price source is enabled.