Hummingbot – Liquidity Mining (Part 2)

What’s my latest position towards Hummingbot since my last post in November last year? During the past 3 months, my journey was testing out its inbuilt strategies, participated in Liquidity mining, participated in its sister project Dminer, wrote my own script to do simple trading.

Inbuilt strategies: I tried pretty much all of the strategies but didn’t find them very effective to be frank. Those strategies may work in some cases but in a bear market, it’s very hard not losing money and in a bull market, you don’t need any strategy to make money anyway. I simply feel it’s not that worthwhile to run those strategies given the risk of trading loss.

Liquidity mining – It provided constant yields for 2 months and I was happy until one night during sleep, one of the pairs (Hotcross/USDT) incurred heavy loss. In the morning I couldn’t believe how come I lost almost 200 USDT over one night! The real problem is it is often funded by small projects whose tokens are really volatile. I still run it with low cap occasionally when my spare cap is of no better use but I won’t touch high volatile tokens any more.

DMiner – a sister tool with focus on tradings on DEX. I was one of the earliest users but my first few cross-exchange transactions were only half executed which led to loss for no obvious reason. I guess probably the connectors (TradingJoe & Pangolin) were not mature enough but given pairs were only available on those small DEX, I don’t feel much reason to continue for now. I however remain positive on this area so will have close eyes on its development (I really hope it could support BiSwap which is my favorite DEX).

Own script – I really love this feature. All in-built strategies looked advanced but lack a feature that I only want to sell at a price higher than my purchase price so I wrote a simple script to achieve this. It works fine and becomes my daily buddy to help trade.

Again, thanks go to the great open-source tool Hummingbot!