Which HB Strategies Are You Using?

Author: Carlito 0x0c3

Aside from Hummingbot’s comprehensive & useful sets of documentation, blogs, & YouTube videos, we believed that this platform will become go-to place also for many users at all levels.

It is because in this platform, actual users of the mining platform & Hummingbot software will be openly sharing their experiences, opinions, & tips.

Thus to kick-start in making this commonwealth platform great place for all of us, we can start by asking the first question that anyone “new”, after installing HB software, may ask someone “older” in the HB community.

Which HB Strategies are you currently using?

Well, giving a direct, no-nonsense, straightforward answer may sometimes be helpful. However, to give more value & for everyone’s entertainment, it would be highly appreciated if you may please explain WHY & share your experiences / stories with using the strategies.

We encourage our community members to openly share and ask questions, for mutual benefits. We believe that fostering these attributes will enable stronger community of decentralized market makers.

Author: cgambit 0xdEa

Pure Market Making (PMM) Strategy

After testing out other strategies for several weeks, we settled in using PMM Strategy.

We found that strategy’s parameters are relatively simple & easier to understand. We think that this strategy is almost perfect & effective, in favorable market conditions, for gaining liquidity mining rewards. We feel that the results, either profits or losses, we are getting are NOT entirely due to PMM Strategy & its parameters, but on the general market direction or volatility.

Thus, we agree that PMM is the flagship strategy of Hummingbot software, & would like to see & support more enhancements in the future as more users may adopt this simple, yet effective strategy especially for liquidity mining campaigns. Cheers!

Author: X Chop 0x873

I agree with this. When I first started using Hummingbot I also used pure market making because it’s easy to learn and understand. The very basic settings is just place X amount of buy/sell orders at spread Y every order refresh time interval.

Author: Jelle {Cryptobot} 0xe8f

I am primarily using cross-exchange-market-making . I find it easy to understand and I love the idea of every trade being profitable (in theory). It is easier for me to manage (inventory) risk as the inventory should stay constant over time. It does not really matter which way the market goes as I hedge most of my positions and I trade delta-neutral. There are some improvements to be made to the strategy that gives you more freedom and allow for better risk management, idea’s will be shared soon :slight_smile:

It does however limit me to some pairs as not all pairs have a more liquid taker exchange available or not all pairs have a hedging option. Another downside is that you need double the funds to run the strategy, you need a maker balance, and the same amount of coins on the taker exchange. For PMM you only need assets on the maker exchange.

Author: cgambit 0xdEa

In this bearish market condition, your strategy is highly valuable to learn. I will start to test this out in next few days, during Chinese New Year holidays. Looking forward for more ideas & tips of this XEMM strategy. As always, thanks a lot for sharing!

Author: Jelle {Cryptobot} 0xe8f

Yes it is, even though with large volatility, the bot does not hedge with a 100% success rate. But I do have an idea for this that is related to a kill switch, will post this idea on commonwealth soon. Let me know if you have any questions about the strategy, happy to help!

Author: MrB 0xf82

It would be nice to share between us strategies & also configs for Market Making & Hedging.