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Hummingbot 1.25: DCA Strategies and Carbon DEX Trading

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Summary

Hummingbot version 1.25 introduced a range of platform updates, including a Carbon decentralized exchange connector, expanded candle feeds, connector setup guides, and an ongoing redesign of its V2 strategy framework. Most release notes describe product, community, and connector changes rather than trading research, but the two sample strategies and Carbon’s order concepts offer relevant trading detail.

DMan-V5 uses MACD signals with dollar cost averaging, dynamically adjusts order sizes and spreads using geometric distributions, and includes take-profit, stop-loss, and trailing-stop controls. DMan-V6 uses a configurable DCA executor to place orders at different price levels and conditions, with technical indicators, order distribution, and risk controls. Carbon is described as supporting on-chain limit orders, adjustable price ranges, and recurring buy-low/sell-high strategies. The release provides no backtest results or evidence of profitability for these methods. Its descriptions are brief, so implementation details and strategy performance cannot be assessed from these notes alone.

Key ideas

  • DMan-V5 combines MACD signals with dollar cost averaging and geometric adjustments to order sizes and spreads.
  • DMan-V5 includes take-profit, stop-loss, and trailing-stop mechanisms.
  • DMan-V6 configures DCA orders across different price levels and conditions, with technical indicators and risk controls.
  • Carbon supports on-chain limit orders, adjustable price ranges, and recurring strategies for buying and selling within ranges.
  • The release notes report no performance evaluation for the sample strategies or Carbon strategies.

Tags

CryptoTechnical indicatorsRisk managementExecutionDeFi
Full text
# Hummingbot v1.25.0 Release Notes


# Hummingbot v1.25.0 Release Notes

*Released on February 26, 2024*

## Introduction

We're thrilled to unveil Hummingbot version 1.25.0! This release features new **Connector Guides** for Binance, Vega, Hyperliquid, and Polkadex, which make it easy for users to get started running bots on these exchanges with step-by-step instructions that show users how to generate credentials and use them with Hummingbot. Furthermore, we are excited to announce big improvements to the **Discord Support Program**, which rewards users for supporting other users on Discord by answering their questions. In addition, this release introduces the new **Carbon** DEX connector, adds Candles support for **OKX Perpetual** and **Kraken**, and greatly improves the **XRP Ledger** connector.

Last but not least, we are in the middle of a huge refactor to the **V2 Strategies Framework** and added two new sample strategies in this release. When this overhaul is complete, the V2 framework will be more intuitive and flexible for strategy development, paving the way for advanced trading strategies and customization.

| Repository | Description | GitHub Release | DockerHub Release |
|------------|-------------|----------------|-------------------|
| [Hummingbot](https://github.com/hummingbot/hummingbot) | Core Trading Engine | [`v1.25.0`](https://github.com/hummingbot/hummingbot/releases/tag/v1.25.0) | [`version-1.25.0`](https://hub.docker.com/r/hummingbot/hummingbot/tags?name=version-1.25.0) |
| [Gateway](https://github.com/hummingbot/gateway) | DEX Connector Middleware | [`v1.25.0`](https://github.com/hummingbot/gateway/releases/tag/v1.25.0) | [`version-1.25.0`](https://hub.docker.com/r/hummingbot/gateway/tags?name=version-1.25.0) |

## How to Update

### Docker

Clone the latest [`hummingbot/deploy-examples`](https://github.com/hummingbot/deploy-examples) repository and use the `hummingbot-update.sh` script under the `/bash_scripts` folder.

Alternatively, run the following command to pull the latest Docker image:

```
docker pull hummingbot/hummingbot:latest
```

### Source

Update your Hummingbot branch to this release by running:

```
git pull origin master
```

## Monthly Community Call

Join the next community call on [Discord](https://discord.gg/hummingbot) to learn about the new features in this release and other Hummingbot news:

* **Date**: Wednesday February 29
* **Time**: 4pm GMT / 12am SIN (Feb 1) / 11am EST / 8am PST 
* **Location**: [Hummingbot Discord](https://discord.gg/hummingbot)
* **Event Link**: <https://discord.gg/8TsJdCnc?event=1199751917715329064>

Afterwards, we will publish the recording on the Hummingbot YouTube and post it here.

<iframe style="width:100%; min-height:400px;" src="https://www.youtube.com/embed/RfnPqxo3FGM" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

For more community events, check out the [Hummingbot Events Calendar](https://lu.ma/u/hummingbot).


## Connector Guides

We are excited to introduce Connector Guides, step-by-step instructions that show users how to generate credentials on various centralized and decentralized exchanges and how to use them with Hummingbot. 

### Binance

The Binance guide helps users set up and use Hummingbot with the world's largest crypto exchange by trading volume. It includes step-by-step instructions for generating API keys on Binance, ensuring account security through two-factor authentication, and adding these keys to Hummingbot.

### Hyperliquid

The Hyperliquid guide provides instructions for using Hummingbot with Hyperliquid Vaults, where traders can deposit funds to be used by an automated strategy and earn a share of the profits. It explains how Vaults work, covers creating a Vault as a leader who operates the trading strategy, and depositing in Vaults as a depositor to passively earn returns. The guide then shows how to connect Hummingbot to Hyperliquid using a Vault address, allowing depositors to share in the performance and profits of the bot's trading strategies.

### Vega

The Vega guide  covers setting up a Vega wallet using the Metamask Snaps, funding it with tokens, installing Hummingbot, and connecting the wallet by entering your Vega party ID and seed phrase when prompted. The guide also provides trading pair formatting examples, troubleshooting for common issues like failed orders, and additional resources like links to Vega's documentation.

### Polkadex

The Polkadex guide walks through setting up a Polkadex wallet, funding your trading account, and connecting it to Hummingbot to enable trading. It covers installing the Polkadex wallet browser extension, registering accounts, transferring tokens for trading, importing your trading account, and integrating it with Hummingbot by adding your seed phrase.

See Tag: Connector Guides for a full list of the current guides. HBOT holders can propose [Bounties](../bounties/index.md) to fund the creation of additional guides by community contributors.

## New Bounties Process

Hummingbot's bounty system lets sponsors tap into the thousands of quant traders and developers globally who run Hummingbot. 

In this release we've revamped the documentation for the Bounties program to make it a lot easier for both Contributors and Sponsors to follow the steps needed to sponsor or contribute to a bounty. See [Lifecycle of a Bounty](../bounties/lifecycle.md).

Also, see the new Bounty Pricing Guidance page as a guideline to make it easier for both developers and sponsors to agree on a price for external bounties. 

## Discord Support Program Improvements

Hummingbot is a community of algorithmic traders and developers that help each other on Discord. We're excited to announce the following changes to the Discord Support Program:

- Public Leaderboard
- New Discord Roles
- Increased Weekly Payout amount 
- Adjusted Reward Percentages
- Revised Point System

For more information, including how to sign up, please see this [blog post](../blog/posts/improvements-to-discord-support-program/index.md)


## Improvements to V2 Strategies

This release starts a comprehensive refactor of the [V2 Strategies](../strategies/v2-strategies/index.md) framework, building on the foundation laid by the introduction of initial components last year. While this new framework has significantly enhanced Hummingbot's capabilities, the initial design made it challenging for users to extend and customize. See the [#6844](https://github.com/hummingbot/hummingbot/pull/6844) for the ongoing pull request, which will be merged into the `development` branch shortly.

In addition, aside from the refactor, we've also added a couple new sample strategies in this release:

The [DMan-V5 strategy](https://github.com/hummingbot/hummingbot/blob/development/strategies/scripts/v2_dman_v5_with_config.py) strategy utilizes the MACD indicator to generate buy or sell signals, then applies a Dollar Cost Averaging approach to execute trades. It dynamically adjusts order amounts and spreads based on geometric distributions and manages executor actions based on the strategy's rules and market conditions. It includes mechanisms for taking profit, stopping losses, and employing a trailing stop to optimize trade outcomes.

The [DMan-V6 strategy](https://github.com/hummingbot/hummingbot/blob/development/strategies/scripts/v2_dman_v6_with_config.py) focuses on executing trades using the new DCAExecutor, which uses the Dollar Cost Average (DCA) approach to place orders at different price levels and conditions based on the strategy's configuration. The strategy dynamically adjusts its actions based on market conditions, the status of existing orders, and predefined settings for managing trades. This includes leveraging technical indicators, order distribution strategies, and risk management tools like stop loss and take profit parameters.

**Pull Request:**  [#6816](https://github.com/hummingbot/hummingbot/pull/6816)


## New DEX Connector: Carbon

[Carbon](https://www.carbondefi.xyz) is a decentralized trading protocol that enables users to execute advanced on-chain trading strategies in a non-custodial and fully on-chain manner. It offers features like automated limit orders, custom price range adjustments, and the ability to create "recurring strategies" for buying low and selling high within specified price ranges. 

For more information, refer to the Carbon connector docs.

**Pull Request:**  [#256](https://github.com/hummingbot/gateway/pull/256)

**Snapshot Proposal:** [NCP-9](https://snapshot.org/#/hbot-ncp.eth/proposal/0x715823050904a16105b0b852c088c500071e393a36f18c2e299cc780ea897dd1)

**Thanks to [tiagofilipenunes](https://github.com/tiagofilipenunes) for this contribution! 🙏**


## Other Updates

### Hummingbot

- [#6791](https://github.com/hummingbot/hummingbot/pull/6791) - Added [OKX Perpetuals](../exchanges/okx/index.md) candles feed **Thanks to [tomasgaudino](https://github.com/tomasgaudino) for this fix! 🙏**
- [#6796](https://github.com/hummingbot/hummingbot/pull/6796) - Renamed Huobi to HTX **Thanks to [blagodar1](https://github.com/blagodar1) for this fix! 🙏**
- [#6811](https://github.com/hummingbot/hummingbot/pull/6811) - Updated [Injective](../exchanges/injective.md) low level API components **Thanks to [aarmoa](https://github.com/aarmoa) for this fix! 🙏**
- [#6817](https://github.com/hummingbot/hummingbot/pull/6817) - Added [Kraken](../exchanges/kraken/index.md) spot candles feed **Thanks to [yancong001](https://github.com/yancong001) for this fix! 🙏**
- [#6827](https://github.com/hummingbot/hummingbot/pull/6827) - Added XRPL improvements for February **Thanks to [mlguys](https://github.com/mlguys) for this fix! 🙏**
- [#6832](https://github.com/hummingbot/hummingbot/pull/6832) - Added option to switch to Hyperliquid vault for trading **Thanks to [yancong001](https://github.com/yancong001) for this fix! 🙏**
- [#6833](https://github.com/hummingbot/hummingbot/pull/6833) - Removed **Bitmex** and **Woo X** connectors as per [Epoch 7](https://snapshot.org/#/hbot.eth/proposal/0x09028cd5ebc076f1ae9a55921345a8c1cca1cbb1200cc77c798c66013aabef5d) results
- [#6855](https://github.com/hummingbot/hummingbot/pull/6855) - Increased the update interval for **XRPL** and got **Rate Oracle** to work with not supported pairs **Thanks to [mlguys](https://github.com/mlguys) for this fix! 🙏**

### Gateway

- [#278](https://github.com/hummingbot/gateway/pull/278) - Added XRPL improvements for February **Thanks to [mlguys](https://github.com/mlguys) for this fix! 🙏**
- [#282](https://github.com/hummingbot/gateway/pull/282) - Added retry and set `submittx` to submit and wait **Thanks to [mlguys](https://github.com/mlguys) for this fix! 🙏**

Shown in full with attribution under the source's licence. Licence: Apache-2.0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.