Triangle Arbitrage Bot

To solve the problem of internal arbitrage on one cryptocurrency exchange, an algorithm using the principle of triangular arbitrage was developed. This method allows traders to capitalize on the difference in prices of the same asset traded in different trading pairs.

CLIENT'S NEEDS

The client needed an automated solution to detect and execute triangular arbitrage opportunities within a single cryptocurrency exchange.

The bot had to operate with high speed and efficiency to capitalize on short-lived price differences before the market corrected itself.

A robust risk management system was required to ensure profitability while minimizing potential losses due to slippage or fees.

Real-time monitoring of multiple trading pairs was essential to identify arbitrage opportunities instantly.

suggested solutions

Developed an advanced algorithm that continuously scans trading pairs within a single exchange to detect profitable triangular arbitrage opportunities.

Developed a configurable risk management module to account for exchange fees, slippage, and liquidity constraints, ensuring only profitable trades are executed.

Implemented real-time price monitoring and order execution to ensure that arbitrage trades are completed before market conditions change.

An analytical module has been developed, allowing the client to test various trading strategies and bot settings on historical data.

Optimized execution speed by using WebSocket-based market data feeds and direct API integration with the exchange.

Technologies

backend

frontend

database

Python

Websockets

Value delivered

Provided an automated trading solution that capitalizes on price inefficiencies, increasing profitability for traders.

Minimized risks through a well-structured risk management system, ensuring that unprofitable trades are avoided.

Enhanced control by allowing strategy adjustments based on real-time market conditions and historical performance data.

Used by the world's leading companies

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