Building a market making strategy using Hummingbot - Part 1

Learn about Pure Market-Making Strategy and create a strategy bot in Hummingbot with Binance as the connector.
Make sure to finish the video as the results of the strategy bot will be explained at the end part of the video!
0:00 Welcome
0:14 What is Hummingbot?
0:44 Trading Knowledge
2:00 Strategy Based Approach
3:00 Binance BTC/USDT Order Book
3:49 Finding the Right Spread
10:00 Creating a Pure Market Making Strategy in Hummingbot
13:17 Results of the Bot
16:08 Candlestick Refresh Time 15min
18:05 Candlestick Refresh Time 30min
Related Links:
Strategy#1; Pure Market Making(PMM)
hummingbot.io/academy-level-2...
Selecting Markets, Identifying trends and reducing inventory risk
hummingbot.io/academy-level-2...
Fundamental philosophies for success, tips, hacks, and advice
hummingbot.io/academy-level-2...
Hummingbot Academy Level 4: Professional - Become a Pro
hummingbot.io/untitled-entry-...
Reference Links:
Hummingbot Website - bit.ly/3qHoEtb
Hummingbot Miner - bit.ly/3FiZpS6
Hummingbot Blog - bit.ly/3qI2EhO
Hummingbot Docs - bit.ly/327EnYo
Important Disclaimer
This video is for instructional and educational purposes only. We are not giving any legal, tax, financial or investment advice in this video.

[@jaycalvin3783]

Great video, looking forward to the next one :)

[@jaycalvin3783]

@Stefan Ayaan No way dude it dit?! Go scam somewhere else idiots. Don't fall for this bullsh..

[@Christian_Ky]

How we can say "take profit when" ... ? and stop loss or trailing? Thanks for the Video!

[@thrivingproject1920]

Hi, I also have a question about the basis points parameter, because I understand bips to be something different. In the morning, you selected the candle at 2020-06-23 02:00:00 which has a high of 9621.73 and a low of 9577.43, a difference of 44 points, but since you entered 42, I'll refer to that number. Now shouldn't the bid_spread and ask_spread each be 42.0, because a spread of 0.42 would imply a spread of 42 cents, yet you are trying to capitalize on a spread of 42 dollars, i.e. 42.0?

[@william1000]

Hi Mike great stuff. Is there a way to backtest?

[@Hummingbot]

Make sure to join #traderchat channel in the discord community of hummingbot to hear the latest news and updates about hummingbot! ⭐️

[@simplyselling]

I recently made the leap forward and invested into crypto with Ndax. Using a bot seems very interesting. Question: Is it possible to build a bot that buys when it drops to a certain percentage, then closes and waits to buy when it reaches a percentage?

[@Hummingbot]

We hope it all work out for you! Make sure to hear community insights in #traderchat channel in our discord community channel! 🦅 discord.gg/5WNdSUCX

[@ronpoletti4401]

Thanks much. I have a question about basis points. I believe basis points are 0.01 % increments. Mike calculates 43 basis points at 18:38mins. Are basis points also 1 dollar increments? Is this because the price of bitcoin is ~ 10,000 dollars? 1/10000 = 0.0001 = 0.01%?

[@Yovry]

Oh shit... 10k for bitcoin? I wish I bought at that price lol

[@lz2k2009]

Hi, Mike this is great video! I have a basic question. Is it possible to run multiple strategies in bot? or one bot can only run one strategy?

[@KRINOP123]

You can run the file more than once

[@marvsebio803]

Hi I have a question. What do you need to connect Hummingbot to an exchange? does the items below applies? Cryptocurrency assets Crypto miner GPU Verified account on the exchange API keys SSH Public key

[@Hummingbot]

Some of these are needed. For more information, please refer to our documentation page. docs.hummingbot.io

[@TheVd101]

Is it possible to implement a custom strategy within HummingBot? One that uses the infrastructure available but using custom-written script?

[@Hummingbot]

Yes, you can check out here: docs.hummingbot.io/developers/ For more supports, you can join our Discord: discord.hummingbot.io

[@mattharris8203]

@@Hummingbot do you need python programmers? would love to contribute to your project :)

[@Cyb3r33]

Hey! Thanks a lot for the content. I was wondering - can this bot be integrated into smaller crypto exchanges such as Bitmart or Coinsuper? And if not, could you perhaps point me in the right direction where I could find a similar solution for these exchanges? Thanks a lot!

[@jonan2199]

Did you find anything supporting these smaller centralized exchanges? thanks a lot :)

[@Cyb3r33]

@@jonan2199 Yes I have found a dev and hired him to build connectors

[@KendrickCreates]

8:41 wouldn't that be 1500 basis points? 15 bips would be xxxx.15. Also, I think it's strange we don't refer to that as pips since this trades more like FX than equity.

[@Galturok]

Please take the time to make a UI. This command line stuff is complex.

[@Ibe.chukwudi]

Simple GUI will be nice

[@michadabrowski9397]

I think that UI it's not a priority now. It's better to make a great bot and code first and polish this baby later. Keep It Up Guys!

[@theophiluschambers3628]

lol !! this is a UI!

[@BastienVide]

@@theophiluschambers3628 And this is a pretty neat one, compared to other products

[@doopsietootsie1698]

UI takes time to do it correctly, and UI based on terminal is more reliable

[@buttpub]

but isnt the point to get more coins, which this bot actually does if set up correctly. Highly recommended with 3-5 days of autism for tweaks required