Hummingbot Hummingbot Live, 12 Sep 2019

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From YouTube: [Hummingbot Live] Ep.3 - Paper trading, market making demo on Huobi, product improvement, China trip

Description

We are excited to launch a brand new weekly live show for hummingbot users and the crypto algo trading community on Youtube Live. We'll try to make it more fun and interactive. Here are what you can expect in every 30-min episode of Hummingbot Live -

- Ask Me Anything aka AMA where your questions get answered
- Educational content and bot demo, which shows the bot settings and trading performance per your request
- Hummingbot updates and upcoming DeFi events

Tune in every Thursday 9:30am (PDT)!

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Important disclaimer: Not Financial, Legal, or Tax Advice. Hummingbot is experimental software, users should do your own research and use at their own risk.

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Learn more about Hummingbot:
Read the documentation: https://docs.hummingbot.io/
Join the conversation on Discord: http://discord.hummingbot.io
Follow us on Twitter: https://twitter.com/hummingbot_io

A

Everyone this is michael fang, cofounder and CEO of ami watt, I mean Bhat, is the leading open source and free software project that allows you to create your own high frequency trading bots right now we start with the parentheses. So every week we do how many well live, which is a weekly live streamed, show that where I run BOTS I show off the new features that we release and humming but answer questions of audience and talk about all things crypto. So, let's get to it so this week, I wanted to really kind of like showcase.

A

Some of the new features that we have released and humming by the last release, as well as some stuff that were coming out in the next release, which is coming out and about we can have and the reason, because so next week, I'll be in China of attending the Shanghai blocking week. So we probably won't have like a live next week and we have a lot of new stuff coming out recently.

A

For example, in last release we had the Hobie, connector and, and then upcoming release will have paper trading mode, and you know revision to the cross exchange mark making strategy. So I really want to take this. This particular live stream and just really show you guys how it works, and so you can really hit the ground running after it's released. So without further ado, let's get to it so I have the the development version of humming bot installed here, so I'm gonna start that up and but before I do so.

A

Let me show you guys something that's coming out of the next release, which is how to turn on. So we call it paper training mode, so to turn that on. Actually let me show you how it works first and then, then we can kind of like go into more details about how how it works. So let me just start.

A

What is this black thing here.

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Where's, our black thing, camera.

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Strange: okay, good, your black thing, all right; okay, so you won't see my face, but that's okay, because I'm, not okay anyway. So let me let's pick a strategy, your market-making as create and let's see, I'll pick will be and then let's take, let's do eat the USD t single and let's pick a really really tight, spread and cancel or is pretty quickly whoops.

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Fix that, let's fix that the parameter I excellent typo'd.

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I think that was canceled. We're wait times right, big chance, wait time, 30 there, okay, okay, so what I'm running right now is a market making bot on the hobby market. So who will be is one of the largest crypto currency exchanges in the world.

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It is yeah, so it's probably part one most active volumes and but if you actually notice what I'm running I'm actually writing something called the market is in Kobe, it's will be underscore paper trade and the reason for that is because I don't actually have ten ether or 10 USC T on will be which I did but the these are. These are kind of like fake values that I've entered into the configuration file and I've turn on paper training mode.

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So currently, this is only on the development branch, but it should be released in upcoming release, so these orders are now actually being created on the hobby market. However, we're coming about is doing. Is it's looking at?

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It's looking at the Hobie market and and.

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Basically, it's basically like trying to like it's is dumbing, those values so that it's using the live order book and the live trade tape to simulate how this market making strategy would actually behave if it were running on the real market right now.

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So what that means is you can run things like status and see kind of like what waters you're placing right now so right now you have a buy order at 179 and a sell order at 179 point four, and you can also run a history command to see kind of like what trades the spot would would have made if it is running this strategy, so so the paper trading mode isn't really intended to help. You kind of you know understand how strategy behaves without actually risking your real capital.

A

So let's talk about how to configure both paper trading mode and the holgie connector. So for will be, if you, if you, if you are going to go through a strategy, pick will be you'll automatically see questions that show you how to enter the whole V connector and for pipi trading mode right now it says Ellen branch. So it's it's, it's a the deterrent aren't off. You have to change a configuration setting in the global configuration file, but we might try to make it'll be easier in the next coming week or so before.

A

We actually release it to production, but basically there's a variable in the global config file called paper trading mode enabled so by default it's false, but you can also set it true and- and this is also kind of like there's bunk balances- you can enter it. So let me show you what that looks like right now.

A

So if you go to see if you edit a humming button which is here, if you have this global configuration file, you can see that down below at the very end. There are there's one kind like a variable called paper trading mode underscore enabled. So if you turn that to false, then it uses your your actual balances when it's true it will use. These assumes that you have an account with these balances below. So these are kind of dummy settings like 3000 USD tea. You know some Eve, some PTC. You can alter these values.

A

To give yourself, you know higher paper trading amounts and humming about will essentially assume that you have those balances when you run paper, training mode and it will become like. And similarly when you run history, it will deduct and increment those balances to turn determine. What's your paper performance would have been if you were trading um and then similarly for B. This is also kind of where you store your Hobie API and API secrets in those endings, so so yeah, so that's pretty much about it, and so the other and so I think people.

A

Training mode is a really important feature for us, because it allows users to really test out new strategies. You know and really kind of a test out humming, but in general, without having to you, know, deposit assets, don't to exchange or other things like that. In fact, I believe that we come with kind of like with aetherium exchanges.

A

With these exchanges, you don't even need to you know korean account on, like you know, on central exchange in order to test out humming, but all you really need is throwing wallet and and yeah, and you really you're off to the races. So we actually will probably come up revise our QuickStart guide so that it it really guides people through using people training mode as default behavior, so that it just reduces the number of dependencies that you need to have before you get started with my Bob, so yeah.

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So there's any questions about how it works. Please put them in the chat, otherwise I'm going to show off one more new feature, which is the change that we made to the cross exchange market, making strategy.

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Okay, so in the crisis change marketing strategy, this was come for the first strategies that we are built at honeypot and so I think a lot of users were kind of like you know, we're uncertain about how it worked, in particular the behavior, where it would sometimes not place orders when it felt it wasn't profitable to do so, but I think the goal of picture of the cross exchange strategy actually come back just to explain like, but what the some of the things we've changed before we go into how how it works, but basically in the previous version, which was something that we first developed when I first came out, humming bought it would decide if an order was profitable and then it would decide whether to keep on keep that order or to not place that order, because it wasn't profitable, but the way it works.

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People process change works is that you make a market on one exchange and you essentially, hedge any filled, orders on another exchange. So the idea is that the the one that you're making on is less liquid and the one that you're hedging on is more liquid, so that the your arbitrage inge, the spread differential between market one and market.

A

So the what we change in the new strategy is, we did a few things for we made it simpler, so the we kind of hid a lot of the advanced parameters so that you can still alter them but they're in the configuration file, not in the configuration walkthrough process. The second thing we did was we.

A

We made it such that you're always placing orders on the maker book, and so these orders are always as like, a a certain spread, higher or lower than the send up. Then the prices on the taker book, which is the liquid, the market you're hedging on so so now, instead of designing whether you should or shouldn't place orders based on profitability. Now humming bot always places orders on the maker book and with the the price of the the maker orders or equal to the taker book, plus a certain spread.

A

So hopefully, this this not only makes it simpler because, instead of like cancelling and adjusting orders all the time, it's it always leaves orders on a maker book. But it's also should be more effective in terms of increasing the level of quiddity on that maker book. So let me go ahead and configure a cross exchange market making strategy, and then we can discuss. You know how like how did like further increase or like how to further customize its behavior.

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Actually I'm gonna, I'm gonna go ahead and and and not and turn paper training mode off here, mainly because I want to be able to show you guys what it looks like from the actual exchange perspective and that that that means that I'll need a term paper trading mode off. In order to show you them show you that aspect.

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Okay, so now that paper trend was off, we are playing with real capital here and I'm gonna go ahead and run the bar, so I would do cross exchange market making and well. One thing I always like to do you know, is to do this on a single exchange, so I'm going to do this with two pairs on finance and and since we're doing the I know. I have a bunch of one because we're doing the bounty program so I won't use.

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I'm gonna make a market on a uset packs pair and I'm gonna hedge, that on the uset on the one, the one uset pair, so the the tether pair is doing more liquid. The packs pair is less liquid. So that's why this strategy, you know, should should work so it's set a fairly low profitability, maybe like a thousand or so, and then let's start and see how they works.

A

Oops I didn't realize I'm, actually not showing the screen here, but basically yes, so here's a configuration. So we pick Carson ange market making finance for the maker exchange and the taker exchange and one packs for the maker pair one uset for the taker pair. So we're making a market here any filled, waters or hedging here and 0.005 is the spread that we're adding yeah, okay, okay, there's a bunch of errors. For some reason, this is what happens when you run a demo on the developer branch. One.

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Second, let's see: okay, all right, something's going wrong, so I'm gonna cancel. This me see what's going on here.

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A

hmm That's it: okay, all right, I'm, sorry, I'm, gonna, try this again, I might have just got done something wrong when I was configuring it. So let's try. Let's try! That's very different one. This tried finance, that's right. um She, let's try I, say radar me radar and with you finance the other one and let's do wet die for this one here, let's do what die and we'll do it if you Sgt the other one.

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Okay, all right! So, let's see if that works on another market uh and I may need to recompile. Let's see.

A

Okay, okay, so now so now, let's, let's see what it's doing and it looks like it is doing things correctly now, and so you can see right now. There is its placing orders on radar wheel, a and then hedging them on my mine ants. So so, let's, let's see what it looks like.

A

All right so I think we're making workers here great.

A

Okay, so you can see that here's my buy order- and here is my sell order up here- I'm, not sure what these are. These actual orders, yeah okay, so looks like there might be a bug that we need to debug still. This is why this feature is on a development branch we're so we have another week or so in order to fix any bugs before we release this to production, but essentially what with the paper with what this cross exchange strategy now does? Is it always basically places orders here?

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There should only be one, but right now, there's like a lot for some reason: that's how much I stopped the spot and and then it's using finance as the as the other side of this trade.

A

So if when these orders gets filled, it will then hedge the other side on finance and hopefully lock in an arbitrage profit which is equal to the differential between these sprites, these prices and the prices on finance, which should be much tighter for the the either USD T bear, and so I apologize today for the kind of like the you know, the technical difficulties and as well as a kind of like that like running code, which is on the development branch which is, is gonna, be buggier than what's on the production master branch.

A

However, I really wanted to show you guys kind of some of new things coming out, because I think that with a hobby connector, it will give people just more options and more markets with which to experiment and run trading BOTS. The paper training mode is a really essential feature for us, because we want to lower the barrier of entry for anyone to do something bought and one people to be able to test it out, see how it works without risking their real capital.

A

And so hopefully, that's that would do that and finally, the cross exchange strategy that now that it's more predictable and simple, we hope that people we start using it in order to to really kind of like provide liquidity to the exchanges who needed most like these central exchanges, while also being able to make an arbitrage profit by capturing a differential between more liquid markets and lift less liquid markets.

A

So so that's it for today, I wanted to kind of like just in terms of questions. If you have any questions, please post them on the the chat later on today or on the YouTube channel and we'll make sure to answer them in the comments. Thank you and we'll see you in two weeks. Hopefully with a little smoother presentation. Talking about live and and I might chemical actually go over some of the features again today.

A

Now after we've resolved the bugs that currently exist in the stuff that we're showing you right now, thank you and have a great rest of the week.