Learn how to use the different strategies
The current release of Hummingbot comes with nine strategies:
Post buy and sell offers for an instrument on a single exchange, automatically adjust prices while actively managing inventory.
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.
Similar to pure market making but with more risks in terms of leverage up to x75.
Aims to capture price differentials between two different exchanges (buy low on one, sell high on the other).
The Hummingbot whitepaper provides more details about these strategies, as well as additional ones that we are working on for future versions of Hummingbot.
The celo-arb strategy is a special case of the normal arbitrage strategy that arbitrages between the automated market maker (AMM) exchange on the Celo blockchain and other markets supported by Hummingbot. This strategy allows users to earn arbitrage profits while contributing to the stability of the Celo cUSD price peg.
For more information, please see this blog post.
AMM-arb lets you exploit the differences between AMMs like Balancer and order book exchanges like Binance. Extending the celo-arb strategy released a few months ago, amm-arb uses a new, simpler design that works with any AMM protocol, on both Ethereum and non-Ethereum chain. You can take a look on our supported Protocol Connectors for this strategy
Released on version 0.37.0.
The Spot Perpetual Arbitrage strategy lets you arbitrage between Spot connectors and derivatives connectors like Binance Futures and Perpetual Finance. This strategy looks at the price on the spot connector and the price on the derivative connector. Then it calculates the spread between the two connectors.
Released on version 0.36.0.
Liquidity mining strategy is still in BETA. This is designed so users can run a single strategy and earn rewards on multiple markets but different pairs without the same base or quote are not available at the same time. Reduced the number of parameters needed and has dynamic spread adjustment on market volatility.
Released on version 0.38.0.
Avellaneda Market Making is still in BETA. This is designed to scale inventory and keep it at a specific target that a user defines it with. To achieve this, the strategy will optimize both bid and ask spreads and their order amount to maximize profitability.
create command initializes the configuration of global and strategy-specific settings necessary to run the bot.
Running this command will automatically create the following files in the
|Global configuration settings, e.g. Binance API keys and Ethereum node.|
|Settings for the pure market making strategy.|
|Settings for the cross-exchange market making strategy.|
|Settings for the liquidity mining strategy.|
|Settings for the perpetual market making strategy.|
|Settings for the arbitrage strategy.|
|Settings for the celo arbitrage strategy.|
|Settings for the amm arbitrage strategy.|
|Settings for the spot perpetual arbitrage strategy.|
create command, you need to setup a strategy along with its parameters.
We have developed walkthroughs for each strategy:
- Pure market making
- Cross-exchange market making
- Perpetual Market Making
- Celo Arbitrage
- AMM Arbitrage
- Liquidity Mining
- Spot Perpetual Arbitrage