Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
181 documents
The document describes a liquidity mining scheme for compensating market makers according to how much liquidity they provide. Rewards are divided across regular order book snapshots, so a participant must have orders present at a snapshot to earn from it.…
This article derives adaptations of the Avellaneda–Stoikov limit-order market-making model for a crypto trading bot. It starts with the reservation price, which shifts relative to the mid-price according to inventory, risk aversion, volatility, and time…
This connector guide explains how Hummingbot connects to Hyperliquid's central limit order book for spot and perpetual markets. Both connectors use WebSocket connections and support limit, maker-limit, and market orders; the perpetual connector supports…
The document describes a cross-exchange market-making strategy that posts limit orders on a less liquid maker market and hedges filled orders on a more liquid taker market. Maker prices are intended to leave at least a configured minimum profitability…
This Hummingbot guide explains how a market-making strategy can price orders from the current order book, another exchange and trading pair, or a custom API. Available references include the mid price, last traded price, the bot's last trade, best bid, best…
These release notes describe Hummingbot version 1.12.0, including the first phase of a module for controlling multiple bot instances remotely. The design uses MQTT messaging between bots and a broker, enabling remote commands such as starting or stopping…
This roadmap sets out plans to develop Hummingbot from a market-making client into a framework for building and running cross-venue algorithmic strategies. Priorities include improving support for selected centralized and decentralized exchange connectors,…
This architecture overview describes how Gateway connectors can expose decentralized exchange operations through a consistent interface. A connector coordinates configuration, SDK access, and protocol methods; route handlers validate incoming HTTP requests,…
This document describes Hummingbot’s Gemini spot connector, which connects to a centralized exchange order book through REST and WebSocket interfaces. It lists supported order types and gives basic steps for creating trading API credentials and connecting…
This guide explains how to connect a MetaMask wallet to Dexalot’s Avalanche subnet, install Hummingbot and Gateway, and configure a simple ALOT-USDC market-making bot. It covers funding the subnet portfolio, setting credentials, linking the wallet, choosing…
This article describes ways to adjust market-making configurations for range-bound, rising, and falling markets. In a range, it proposes estimating the price span to capture and splitting that span between bid and ask offsets around the midpoint. It also…
This Hummingbot guide explains how to cap the amount of a token that bots may use from an exchange or wallet. The feature is useful when multiple bots share an account and token, since it can constrain each bot’s usable balance. The guide describes setting a…
Hummingbot release 1.18.0, dated July 24, 2023, introduced platform and connector changes relevant to automated trading. The release upgraded the software to Python 3.10, added direct Uniswap pool quoting through QuoterV2 as an alternative to router-based…
This guide describes a workflow for managing Hummingbot trading bots through its Dashboard: connect exchange credentials, review portfolio holdings, configure a strategy controller, backtest the configuration, and deploy and monitor bot instances.…
The document explains Hummingbot’s configurable tick size, the interval at which its clock calls strategy components for another iteration. Connectors and strategies inherit from a time-iterator component, and the clock notifies these components on each…
This introduction explains arbitrage as buying an asset in one market and selling it in another to capture a price difference. A banana-trading example illustrates the basic economics, while a USD-JPY example shows how a trade on one exchange can create a…
Hummingbot 1.21.0 release notes describe changes to the trading engine, Dashboard, and Gateway. A key operational change is that startup pair discovery now queries exchanges where the user has configured API keys, plus paper trading venues. A setting can…
This paper explains why liquidity in digital asset markets is concentrated in a small number of assets and venues, then presents Hummingbot as open-source software intended to make automated market making more accessible. It describes quoting bids and asks,…
The document explains a kill switch that stops a trading bot when its calculated performance crosses a user-set profit or loss threshold. The threshold can be configured in the bot or its client settings file, and the performance calculation follows the same…
The document explains how a candle feed combines historical and live exchange data to maintain a rolling OHLCV window. Traders can configure the data source, trading pair, candle interval, and maximum number of stored records, then use the resulting data…
This article introduces an automated arbitrage approach that compares prices on Balancer, an Ethereum automated market maker, with prices on centralized order-book exchanges. It describes a bot that monitors for differences and can buy on one venue while…
The document describes a partnership between Hummingbot and Binance focused on attracting algorithmic traders and expanding token liquidity-mining campaigns. Hummingbot is presented as software for automated crypto trading, including market making and…
This document explains a Hummingbot strategy that makes markets on a single perpetual swap order book. It places limit bids and asks at configured distances from a reference price; fills open derivative positions rather than exchanging spot assets. Settings…
This overview describes the 2018 Hummingbot whitepaper’s case for improving liquidity in digital asset markets. It introduces decentralized market making as a way for individuals and institutions to participate in a role often handled by centralized firms,…