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2020

  • in Academy
  • 8 min read

Hummingbot vs Cryptohopper

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Back in 2019, we investigated 12 bots based on their relative ease of use of installation, configuration, and operation in two blog posts, Bot reviews, part 1, and Bot reviews, part 2.

This time, we decided to do an more in-depth comparison of Cryptohopper against Hummingbot in terms of general features and market making parameters. Cryptohopper is a commercial web-based application while Hummingbot is a free and open source command line application.

We selected Cryptohopper because it also has a market making feature that's not available for many crypto trading bots, so you can actually use it to do liquidity mining on Hummingbot Miner, rather than running the open source Hummingbot software.

In addition to making an apple-to-apples comparison of features, we will also test out running the bots to earn rewards on Hummingbot Miner with both trading bots, so that you can make better decisions on which software to use for liquidity mining.

  • in Academy
  • 11 min read

How to arbitrage AMMs like Uniswap and Balancer

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Welcome back to the Hummingbot Academy!

Lately, we have talked a lot about how you can use and customize Hummingbot to create a market-making strategy that will suit your trading needs.

But with the release of version 0.33, we added a new decentralized exchange connector and a new strategy called amm-arb that allow our users to execute arbitrage trades on blockchain protocols.

You can now arbitrage Uniswap and other Automated Market Maker protocols!

  • in Academy
  • 7 min read

Commands and Configs - Price Source

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Welcome back to the series of articles where you will learn how to make the best use of your Hummingbot configurations.

In the two latest articles (Part 1 and Part 2), we went through all the commands you can use on your client terminal and the global configurations.

Today we will talk about the configuration settings related to the markets and the price information, and how you can use them for your benefit.

What you will learn:

  • How to make your Hummingbot use a reference price from a source different from the exchange it is trading on;

  • What are the various price sources Hummingbot can use as a reference;

  • How the information about price moves around different markets;

  • Why use the price information from a different source.

  • in Academy
  • 7 min read

Commands and Configs - Part 2

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Welcome back to the Hummingbot Academy and the second part of the series of articles that will help you make the best use of your Hummingbot.

Last article we went through some of the commands that you can use to operate your bot, and how they work.

We have a few more of these commands to talk about, and we will also start to show how to customize your strategy.

  • in Academy
  • 10 min read

Commands and Configs - Part 1

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Starting to use Hummingbot can be daunting at first, and you might feel a bit overwhelmed by the CLI interface or by the amount of information options available to you.

We do have documentation that can help you to understand what you can do with Hummingbot, but if you still feel it is a lot of information to digest, allow me to guide you through everything you need to know to successfully run your market making bot.

  • in Academy
  • 11 min read

Liquidity Mining in Hummingbot vs DeFi - Part 2

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While we wrote the original whitepaper and coined the term “liquidity mining”, the concept recently became popularized in DeFi with the emergence of Balancer, Curve.Fi, and, despite being late to the game, Uniswap, who recently introduced token distributions to the original Automated Market Maker (AMM) concept.

Our version of liquidity mining and that of DeFi share the same objective: finding an efficient way for token issuers and protocols to provide liquidity for digital assets. Token liquidity has long been a problem in the cryptocurrency market due to the large and growing number of token assets, exchanges, and exchange protocols, meanwhile there has only been a limited number of sophisticated (and expensive) hedge funds and market makers that could serve the markets.

Hummingbot Miners and AMM liquidity mining both take a decentralized, crowd-sourced approach to market making. They allow the general public, not just the professional market makers, to participate in providing liquidity for digital assets.

One important way in which they enable this is by creating frameworks for compensating a decentralized group of market makers.

  • in Academy
  • 12 min read

What is Inventory Risk?

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Hello again Hummingbot community!

Today we will start to talk about what I consider the most important factor that is part of all types of trading operations: risk and risk management.

As one of the biggest investors of our time once said:

"Risk comes from not knowing what you're doing." ~ Warren Buffett

Source: https://www.azquotes.com/quote/40644

All kinds of financial operations have varying degrees of risk, and market making is no different.

While it seems more exciting to imagine and project future gains and fantasize about being the next Warren Buffet, the reality and less glamorous part of investing, and arguably the most important part, is trying to figure out what can go wrong and how to mitigate losses that can result.

There is a lot to cover about risk and risk management, but today we will focus on one major risk related to market making: inventory risk.

Here is what we’ll cover in today's article:

  • What is inventory value?

  • What is inventory risk?

  • How to mitigate inventory risk with Hummingbot

  • in Academy
  • 13 min read

What is Cross Exchange Market Making?

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Welcome back to our Educational Center, where we aim to help you to learn more about market making, arbitrage, and everything related to algorithmic trading.

Today we will talk about one of the core strategies that can be used with hummingbot: cross-exchange market making.

The objective of this article is to help you understand:

  • What is the cross-exchange market making strategy?
  • What is the difference between cross-exchange market making and arbitrage?
  • How is cross-exchange market making different from pure market making?
  • Why and when should I use this strategy?
  • in Academy
  • 9 min read

What is Market Making?

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Welcome to Hummingbot Academy!

If you reached this page, there is a high probability that you have been asking one of these questions:

  • What is a market maker?
  • What do market makers do?
  • How can I become a market maker?
  • How do I create a market making robot?

Then you are on the right place!

Here at Hummingbot, our goal is to help you learn more about market making and how to use our free open-source robot to implement your own strategy.