Table of Contents
Use Pure Market Making Strategy but set dynamic bid/ask orders based on TradingView indicators which trigger alerts to Telegram and change the bid/ask orders using
inventory skew or
Set up a Kill Switch
It is important to choose the right spread that balances liquidity mining rewards and having fewer filled trades (hence reducing transaction fees). Too small spread will increase the risk of fill orders, and as a result, the rewards can not cover the loss due to the transaction fees. Excessive spreads will lead to a drop in yield or even inability to get rewards (each token has an agreed-upon maximum spread for mining rewards).
Market is uptrend:
Market is downtrend:
Understanding volatility to help us pick the right spread
If you haven't used gate.io's API, you can refer to https://github.com/gateio/gateapi-python
Here is sun spark’s code for getting the volatility of the market:
import matplotlib.pyplot as plt
if name == 'main': date_to = datetime.now() date_from = date_to - timedelta(hours=12) configuration = Configuration(key="YOUR_KEY", secret="YOUR_SECRET"
host="https://api.gateio.ws/api/v4") client = ApiClient(configuration) spot_api = SpotApi(client) data = spot_api.list_candlesticks("XCAD_USDT", _from=int(date_from.timestamp()), to=int(date_to.timestamp()), interval="1m") x = [(float(i) - float(i)) / float(i) for i in data] print("TOP 5 record ", sorted(x, key=None, reverse=True)[:5]) plt.hist(x, 50, density=True, stacked=True, histtype='bar', linewidth=3, color='y') plt.title('volatility distribution', fontweight="bold") plt.show()
Every market works differently, but we highly recommend that you check out some tips from successful traders on how they set up their Hummingbot Parameters:
Only take these tips as reference as different traders operate differently for various markets.