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Engineering

Strategy Coding for Dummies

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by Ben Smeaton

Hi! I've been using Hummingbot for about a year on and off and wanted to give an overview on how to actually go about defining your own strategies. I got into market making because of a hobbyist interest in python coding and I was at that time tinkering with buying and selling shares automatically on the stock market which was incredibly unsuccessful.

Hummingbot is very accessible for hobby coders due to its mainly python-based code base and the fact that its all open source (Meaning you can play around with the code). It's pretty easy to scrape together your own strategies although it�s taken quite a lot of trial and error to get there myself! I wanted to give a basic idea of how you can go about doing this in the simplest way possible.

Hummingbot Gateway Architecture - Part 2

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by Martin Kou

Update (February 2023): Hummingbot Gateway v2 is now available as a standalone Github repository: https://github.com/hummingbot/gateway. Most of the functionality listed in this post has now been implemented, and we welcome contributions from the community.

Introduction

In Part 1 of this series, we have discussed the architectural changes we are making to Hummingbot Gateway v2 to improve its robustness and reliability, to bring it up to the service quality level expected of production trading systems.

Hummingbot Gateway Architecture - Part 1

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by Martin Kou

Update (February 2023): Hummingbot Gateway v2 is now available as a standalone Github repository: https://github.com/hummingbot/gateway. Most of the functionality listed in this post has now been implemented, and we welcome contributions from the community.

Introduction

Hummingbot Gateway is a software that allows Hummingbot to connect to decentralized exchanges like Uniswap.

The Hummingbot Gateway is a separate piece of software apart from Hummingbot, because software libraries needed for accessing decentralized exchanges, e.g. the Uniswap Smart Order Router, are usually not written in Python. The gateway provides Hummingbot access to these decentralized exchanges with their differing software stacks, by exposing a secure and unified API interface to Hummingbot. This API interface can also be used by other potential gateway clients, such as proprietary trading software.

Hummingbot Architecture - Part 2

Introduction

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.

Technical Deep Dive into the Avellaneda & Stoikov Strategy

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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.

Original Model and Our Proposed Extensions

Let's start by revisiting the core equations from the Avellaneda-Stoikov paper:

Hummingbot Architecture - Part 1

Introduction

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.