Running a Market Making Bot (v2.1 Update)

Updated: February 25, 2025

Hummingbot


Summary

Hummingbot version 2.1 has evolved into a comprehensive open-source framework with a user-friendly dashboard and advanced features like backtesting. The new V2 framework enables users to run complex market-making strategies, including sub-strategies like divers controllers, for more sophisticated trading approaches. This version marks a significant advancement from its origins as a simple command line interface tool, offering traders a more powerful and customizable tool for executing trading strategies efficiently and effectively.


Introduction to Hummingbot Version 2.1

Overview of Hummingbot version 2.1 and its evolution from a simple command line interface tool to a more sophisticated open-source framework with added features like dashboard and backtesting.

Market Making Strategy in V2 Framework

Explanation of the new V2 framework for running market making strategies which allows for more advanced strategies with sub-strategies like divers controllers.


FAQ

Q: What are the main differences between Hummingbot version 2.0 and version 2.1?

A: Hummingbot version 2.1 has evolved from a simple command line interface tool to a sophisticated open-source framework with added features such as a dashboard and backtesting capabilities.

Q: Can you explain the concept of the new V2 framework in Hummingbot?

A: The new V2 framework in Hummingbot is designed for running market making strategies and enables advanced strategies with sub-strategies like divers controllers.

Q: What is the purpose of adding a dashboard to Hummingbot version 2.1?

A: The dashboard feature in Hummingbot version 2.1 provides users with a more user-friendly interface to monitor and manage their trading strategies.

Q: How does backtesting capability benefit users of Hummingbot version 2.1?

A: The backtesting capability in Hummingbot version 2.1 allows users to test their trading strategies against historical data to assess performance and make improvements.

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