HUMMINGBOT COMPLETE GUIDE FOR BEGINNERS

Attention! This article is for informational purposes only and does not contain recommendations or calls to action.

The review has been prepared by the CScalp terminal team. You can get CScalp by leaving your e-mail in the form below.

The Hummingbot project was launched in 2019. It focuses on high frequency trading (automated trading) and market making. Cryptocurrency bot is open sourced and completely free to use.

Hummingbot offers the following automated trading strategies, each with its own set of configurable parameters.

• Market making: strategies that provide liquidity to a market
• Arbitrage: strategies that exploit differences between markets
• Utility: other strategies

We would like to mention a couple of words about direct installation to the OS. At the moment, the Hummingbot team stopped to maintain the OS version. All the latest information about updates and serious changes may be found on Hummingbot Docs.

That’s the reason for reviewing only the web version. Web version has extended features for creating Market-making, arbitrage and custom strategy bots. You can sign up for Hummingbot through the official website. it will require only email and password after sending the email.
This is how Hummingbot homepage looks like:

Filling:

- Community section
- Events section
- Solutions section
- Developers section
- About section

These all sections will help you to understand what Hummingbot is really about. For example, in the events section there are regular webinars on how to build your own trading strategy etc. Hummingbot could be run in English and Chinese languages only.
To sign up for Hummingbot you need to click on “Test Drive Hummingbot” button.

Then you need to enter your email here.

Then you will be redirected to some pages with necessary information about Hummingbot that describes all risks of algorithmic trading and users’ responsibilities for their own money. Press OK after the reading.

You need to create a secure password therefore.

After creating and re-entering the password you will be redirected to the main Hummingbot pane.

The Hummingbot interface is presented in one window. The interface is divided into two main sections: the command input/output pane(1) and the log pane(2).

You can hide the log pane clicking on ”>/<” in the right upper corner.

There are two options:

• Strategy: market making, arbitrage and utility types (according to the docs, there are 14 types of strategies);
• Strategy file.

The bottom panel displays trades, PnL and percentage of profit. Also, in the lower right corner there is technical data: the use of the processor and memory of the computer (CPU) and the duration of the trading session.

Hummingbot works in a web command line format and runs through Homepage and also could be run through a local binary desktop application (not maintained according to docs). The entire codebase is available on Github.

All actions in Hummingbot are performed using commands. To perform the action, you need to enter the command and press “Enter” to confirm. There is also an autocomplete feature through the "Tab" button or the first letters of the command.

To start trading with Hummingbot, you need to connect the cryptocurrency bot via API keys. Available exchanges, as well as their status (connected or not), are displayed when you enter the connect command.

You might notice colors next to the exchanges, It indicates the current status of connection.

Types of statuses:

Hummingbot offers connections to more than 30 centralized (Binance, Bybit, OKX, etc.) and decentralized cryptocurrency exchanges (for example, dYdX). To create a connection to an exchange, you need to type connect [exchange name]. Hummingbot will ask for API keys therefore.

When using a decentralized exchange on the Ethereum blockchain, the connect ethereum command will add the private keys of the cryptocurrency wallet so that the bot can interact with the protocol. All keys that the user enters into Hummingbot are stored locally and fully encrypted. The platform does not collect user data.

After connecting to the exchange, you need to configure the strategy using the create commands.

When entering the create command, the program will prompt you to enter the name of the trading strategy or select from the list using the “Tab” button.

After choosing the strategy of interest, you need to click “Enter”. Then you need to specify the main parameters of the bot: the connectors involved, trading pairs and the desired percentage of profit. You can change the settings later using the config command.

Hummingbot is a functional market-making bot with a variety of configurations. All elements are in the public domain and can be modified. The project offers functionality for both beginners and advanced algo traders. But in order to use these opportunities fully, the trader should understand the basics of programming.

Hummingbot is a functional market-making bot with a variety of configurations. All elements are in the public domain and can be modified. The project offers functionality for both beginners and advanced algo traders. But in order to use these opportunities fully, the trader should understand the basics of programming.