Hummingbot V1 Strategy Templates and Their Design
Summary
The document explains V1 strategies as configurable algorithmic trading templates that monitor trading pairs on one or more exchanges. It distinguishes strategy logic, which defines behavior in code, from user-set parameters such as spread and order size, which are stored locally in a configuration file. Standardized exchange and protocol connectors let developers reuse strategy code across venues.
The listed templates cover single-pair and cross-exchange market making, automated market maker arbitrage, inventory hedging with perpetual swaps, liquidity provision across multiple pairs, and spot-perpetual arbitrage. The page says the templates are included in monthly releases but are not maintained by the Foundation, though community members may maintain some. It also states that V1 is no longer actively maintained as development focuses on the more extensible V2 framework. The overview identifies strategy families but does not provide implementation details, risk controls, or evidence of live or backtested performance.
Key ideas
- V1 strategies separate coded trading logic from user-defined deployment parameters.
- Local configuration files store parameters such as spread and order amount.
- Standardized connectors support using strategy code across exchanges and protocols.
- The listed templates include market making, arbitrage, hedging, and liquidity provision approaches.
- The V1 templates are no longer actively maintained by the Foundation as attention shifts to V2.
Tags
Full text
# What are V1 Strategies?
!!! note
Since the Foundation is focused on building out the [Strategy V2](../v2-strategies/index.md) framework which offers greater customization and extensibility, we are no longer actively maintaining the V1 strategy templates below.
## What are V1 Strategies?
V1 Strategies are templates for an algorithmic trading strategy that users can configure, extend, and run. The trading strategy itself is a continual process that monitors trading pairs on one or more exchanges in order to make trading decisions.
Strategies separate **trading logic**, open source code that defines how the strategy behaves, versus **parameters**, user-defined variables like spread and order amount that control how the strategy is deployed against live market conditions. Strategy parameters are stored in a local **config file** that is not exposed externally.
Strategies utilize the standardized trading interfaces exposed by exchange and protocol connectors, enabling developers to write code that can be used across many exchanges. Each V1 strategy is a sub-folder in the [`/hummingbot/strategy`](https://github.com/hummingbot/hummingbot/tree/master/hummingbot/strategy) folder.
## List of V1 Strategies
These strategies are included in each monthly release. They are not maintained by Hummingbot Foundation but may be maintained by a community member.
| Strategy | Description |
|---------------------------------------------------------------|-------------|
| [pure_market_making](pure-market-making.md) | Hummingbot's original single-pair market making strategy |
| [cross_exchange_market_making](cross-exchange-market-making.md)| Market making strategy that mitigates inventory risk by hedging on another exchange |
| [amm_arb](amm-arbitrage.md) | Arbitrage strategy that exploits price differences between AMM DEXs and other exchanges |
| [avellaneda_market_making](avellaneda-market-making.md) | Single-pair market making strategy based on the classic Avellaneda-Stoikov paper |
| [cross_exchange_mining](cross-exchange-mining.md) | Community-maintained mod of Cross Exchange Market Making strategy |
| [hedge](hedge.md) | Hedges spot exchange inventory risk using perpetual swaps |
| [liquidity_mining](liquidity-mining.md) | Provide liquidity on multiple pairs using a single base or quote token |
| [perpetual_market_making](perpetual-market-making.md) | Community| Market-making strategy for perpetual swap markets |
| [spot_perpetual_arbitrage](spot-perpetual-arbitrage.md) | Exploits price differences between spot and perpetual swap exchanges |
## Contributing Strategies
We encourage users to create and extend strategies for their own purposes, and if they so desire, share them with the community.
Developers may submit strategies for review. Please note the [Contribution Guidelines](../../community/contributions.md). For developers interested to create or customize their own strategies, please see [Building V2 Strategies](../v2-strategies/walkthrough.md).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.