multiple exchange arbitrage

[Aleister Crowley]

The market is so new that if you have all resources (lots of capital etc) I think you can benefit. But it's hard taken into account all delays and fees and definetely not for me.

despite having a lot of capital, this will not guarantee anything. because if you do not have a lot of knowledge or have knowledge about trading .. you will only run out of your capital with a failed trade ,, despite having big capital we have to know and have deep knowledge about trading, and must have some trading strategy

[mrayazgul]

hi all
my target is Creating a screening engine to run through as many exchanges api’s as possible and monitor the orderbook flow as well as the arbitrage opportunities.
The orderbook flow will allow us to assess the possibility of a trending market (means liquidity) and as orders starts ti fill we will see deviations of prices between marketplaces.
 
The 3 stage system:
Stage 1 :
Connection to as many exchanges as possible and reading their order books.
We will monitor the trading volume and look for changes.
Moreover we will monitor increasing demands.
The role of this part is to make sure we are not looking at low liquidity coins so that we will not get stuck with a position.
Stage 2:
Monitoring the top of book (top layer of supply and demands)
Now we will be looking for stupid arbitrage opportunities.
For that we have 2 simple methods
1: buying in advance the same currency in all exchanges and then selling on the high exchange and buying again on the cheap to keep the same amount of coins (see table 1).
Pros: keeps the same amount of altcoins but increasing the btc amount.
Cons: we keep an exposure to the market.
2: buying the coins only when orderbooks are filling up and selling right after the arbitrage is executed
Pros: keeps all exposure to bitcoins or usd
Cons: needs a multi exchange control so the system needs to be faster ( all 4-6 with a limit and monitoring )


i would like to have any opinion possible
what is the best strategy to optimize risks?

The changes have to be really substantial. There are the in and out fees and the delay of the deposits and withdrawals. You almost would have to maintain balances for both of the coins in the pair on both exchanges and dip back and forth. It can happen, but you need big differences to make it worth the time.

[qiman]

I do arbitrage sometimes when I have time so does my Wife. We usually arb a coin that we hold long term and make sure we have ethereum and the coin on all exchanges so that if there is a buy/sell arbitrage opportunity we can execute that arbing in split seconds. We do not do arbing by buying on one exchange and then trying to load it to the other exchange to sell, that is a big risk and no-no in my books. We only arb if we have enough of eth and the coin we arb on all the exchanges at any given time, then it's a no risk win trade.

[Iwantthesundae]

I do arbitrage sometimes when I have time so does my Wife. We usually arb a coin that we hold long term and make sure we have ethereum and the coin on all exchanges so that if there is a buy/sell arbitrage opportunity we can execute that arbing in split seconds. We do not do arbing by buying on one exchange and then trying to load it to the other exchange to sell, that is a big risk and no-no in my books. We only arb if we have enough of eth and the coin we arb on all the exchanges at any given time, then it's a no risk win trade.

I sent you  a private message!

can you explain how you do it in more detail with specific coins and the method?

[lopez cryptomania]

Once all the "risky" details are ironed out I believe this would be another stream of crypto income via arbitrage. I'm keeping my eyes on this upcoming ICO they are releasing the first arbitrage exchange focused on bringing in the masses with their easy to use UI and by leveling trading volatility. Arbitrage is a great way to make a profit especially once you're able to trade across the world with major exchanges by utilizing this platform.

https://bitcointalk.org/index.php?topic=3085831.msg31823480#msg31823480