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adrida / Crypto-triangular-aribitrage-bot-Binance

Triangular arbitrage trading bot on cryptos using Binance API
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Confidence in the Detection of Arbitrage Opportunities #1

Open DiTo97 opened 1 year ago

DiTo97 commented 1 year ago

Hi @adrida,

How confident would you say you are in the bot's detection of arbitrage opportunities?

Have you done any quantitative experiments we could relate to?

adrida commented 1 year ago

Hi, this was mostly an experiment but the arbitrage opportunity detection was pretty much straighforward. Take 3 asset and their corresponding 3 pairs (for example BTCUSDT ETHUSDT ETHBTC) and look for a difference in pricing. In practice, it's quite hard to compete with HFT firms on this kind of strategies and if I recall correctly the code didn't take into account trading fees as there was a discount from Binance at the time. That being said, I wouldn't be too confident on using it with real money. It was mostly an experiment to play around with Binance's API.