Built-in Strategies Overview

Comprehensive guide to Hummingbot’s built-in trading strategies

Hummingbot includes several battle-tested trading strategies that you can use out of the box. Each strategy is designed for specific market conditions and trading objectives.

Available Strategies

Pure Market Making

Provide liquidity on a single exchange by placing orders on both sides of the order book

Cross Exchange Market Making

Earn spreads by making markets on one exchange and hedging on another

AMM Arbitrage

Capture price differences between AMM pools and order book exchanges

Avellaneda Market Making

Advanced market making using the Avellaneda-Stoikov algorithm

Perpetual Market Making

Market making on perpetual futures markets with leverage

Spot Perpetual Arbitrage

Arbitrage between spot and perpetual markets to profit from funding rates

Choosing a Strategy

For Market Making

• Pure Market Making: Best for centralized exchanges with good liquidity
• Avellaneda Market Making: Optimal for volatile markets with advanced risk management
• Perpetual Market Making: For traders comfortable with leverage on derivatives

For Arbitrage

• Cross Exchange Market Making: Profit from price differences between exchanges
• AMM Arbitrage: Exploit inefficiencies between AMMs and centralized exchanges
• Spot Perpetual Arbitrage: Earn from funding rate arbitrage

Getting Started

To use any built-in strategy:

1. Start Hummingbot
2. Run create command
3. Select your strategy from the list
4. Configure the required parameters
5. Run start to begin trading

Each strategy has different risk profiles and capital requirements. Start with small amounts to test before scaling up.

Strategy Configuration

All strategies are configured through:

• Interactive prompts during creation
• Configuration files in conf/strategies/
• Direct editing of YAML files

Next Steps

Click on any strategy card above to learn more about:

• How the strategy works
• When to use it
• Configuration parameters
• Example configurations