multiple exchange arbitrage

[the booz]

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?

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[kamudd]

arbitration is a very great thing, I often do arbitration from some exchangers and it gives a lot of profit. but I just picked some big exchanger only and has a large volume to reduce the risk of losing my coin.

[AdolfinWolf]

arbitration is a very great thing, I often do arbitration from some exchangers and it gives a lot of profit. but I just picked some big exchanger only and has a large volume to reduce the risk of losing my coin.

Does this really work for you or are you just spamming posts? If you mind me asking, which exchanges do you use, and how much did you succesfully arbitraged? Substantial amounts?

In such a fast moving market, it seems almost impossible to me to sell, for example, ethereum for a profit on bittrex, only to rebuy it lower on poloniex.

Seems impressive and i'm wondering how it it possible while these kinds of tricks are so extremely saturated, as a small person, since there are business grown that have grown/ exist 100% out of just doing this exact thing, how do you compete with them?.

[Leonbtc]

just voted too risky.

[BrewMaster]

i don't know from where you copied this but you forgot to copy all of it! the table 1 and i am assuming much more is missing from the post you pasted

i currently have a code that does this. i also have run it for a while and also made trades with small amounts for testing. i won't deny that there is a chance of making a profit but in total the risk is way too high and the profit is so small. you will most probably end up losing a lot more.
and usually the price difference is found in small exchanges. and the issue with those is that they don't have enough liquidity. the order size for example is less than 10000 satoshi sometimes!

[micle222]

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?

in my opinion arbitrage is a very quick way to generate some big advantages.
but arbitrage has a great risk also when the coin you send has an long confirmation block. consequently, you will not benefit.
and arbitrage is now very rare and you should be observant in looking at altcoin prices in some markets.

[cellard]

i don't know from where you copied this but you forgot to copy all of it! the table 1 and i am assuming much more is missing from the post you pasted

i currently have a code that does this. i also have run it for a while and also made trades with small amounts for testing. i won't deny that there is a chance of making a profit but in total the risk is way too high and the profit is so small. you will most probably end up losing a lot more.
and usually the price difference is found in small exchanges. and the issue with those is that they don't have enough liquidity. the order size for example is less than 10000 satoshi sometimes!

I don't think it's worth it. If Bitcoin was faster to transact, then maybe, but the result would be that exchange prices would be closer to each other because people would be doing just that.

So if you want to do this, you have to do it in special circumstances, otherwise by the time your BTC arrives to the exchange you may have lost in fees and the price will not be ideal for arbitraging anymore.

[Swoshinima]

I haven't found a way yet to do so.

There are some coins with a different price at different exchanges, but most of the time this happens because on one of the exchanges the wallet is under maintenance, so you can't arbitrage due to you can't deposit/withdraw.

[Fidemoga]

It is risky, to try to trade with arbitrage, because the listed prices at many exchangers do not mirror the real trading amounts espevcally when trade  volumen is low. I have a big minus on arbitrage trading.

[Mulavad]

Well if you succeed with this you will be in god mode.
Not fully a god, but a demigod. Wish you luck.

[crptotrader007]

arbitration is a very great thing, I often do arbitration from some exchangers and it gives a lot of profit. but I just picked some big exchanger only and has a large volume to reduce the risk of losing my coin.

Does this really work for you or are you just spamming posts? If you mind me asking, which exchanges do you use, and how much did you succesfully arbitraged? Substantial amounts?

In such a fast moving market, it seems almost impossible to me to sell, for example, ethereum for a profit on bittrex, only to rebuy it lower on poloniex.

Seems impressive and i'm wondering how it it possible while these kinds of tricks are so extremely saturated, as a small person, since there are business grown that have grown/ exist 100% out of just doing this exact thing, how do you compete with them?.

He is definitely spamming posts brother and I am pretty much sure he would not be knowing how it even works.
Arbitrage if done right can be quite profitable but if done wrong could lose a large amount of your money. What happens most is that when you transfer the money from one exchange to other the time span it takes to make transfer is more than enough for others to use that opportunity and then the price is dumped. One of my friend's strategy is to buy the same coin in many exchanges and keep selling when the price is high and then he transfers the amount from other exchanges to that particular exchange. He made quite good money through this strategy and now has come up with a program that monitors live prices of a particular coin from different exchanges and indicating to buy and sell from different exchanges.

[ZFXToken]

I think a key question to ask yourself is... if there is money in it, why is no one else doing it? Too hard? Too much capital required? No one's thought of it?

A lot of those questions have easy answers. Arbitrage opportunities probably exist on micro cap alt coins, and probably used to exist in the earlier days but now I strongly doubt they are still there.

[avikz]

In my point of view, arbitraging is a very profitable venture and I have been doing it for some time now. Earlier I used to invest heavily in bitcoin because I had to keep a decent amount of money in some of my exchanges for a smooth arbitraging transactions. However, I have now moved to Ether. Eth is a very good choice for method because it offers near instant transaction confirmation. So I don't have keep a huge amount of money in various exchanges waiting for an arbitraging opportunity.

For ETH, you will not find a huge price difference like bitcoin. There will be a small gap of probably $3-$15 in prices, but with good amount of money invested, you can make out a good profit. Not in terms of percentage probably, but in terms of amount for sure.

[iqlimasyadiqa]

Theoretically arbitrage is certainly a thing that allows to be profitable. However, in the case of arbitrage is a difficult thing, we should always look at price movements and also pay attention to the characteristics of an exchange. Some exchanges apply a large fee so if applied it is not worth it. but when GAP and price margins between exchange looks convincing then you need to try it. do not forget to always count so you can estimate that you can benefit rather than lose.

[Pfizer]

In my point of view, arbitraging is a very profitable venture and I have been doing it for some time now. Earlier I used to invest heavily in bitcoin because I had to keep a decent amount of money in some of my exchanges for a smooth arbitraging transactions. However, I have now moved to Ether. Eth is a very good choice for method because it offers near instant transaction confirmation. So I don't have keep a huge amount of money in various exchanges waiting for an arbitraging opportunity.

For ETH, you will not find a huge price difference like bitcoin. There will be a small gap of probably $3-$15 in prices, but with good amount of money invested, you can make out a good profit. Not in terms of percentage probably, but in terms of amount for sure.

It's not a theory, because I did it on summer personally. But it really requires big capital and time if you really look for profit. That's the problematic part. Otherwise, there is space between exhchanges where you can really fill by arbitrating.

[mostkey]

Theoretically arbitrage is certainly a thing that allows to be profitable. However, in the case of arbitrage is a difficult thing, we should always look at price movements and also pay attention to the characteristics of an exchange. Some exchanges apply a large fee so if applied it is not worth it. but when GAP and price margins between exchange looks convincing then you need to try it. do not forget to always count so you can estimate that you can benefit rather than lose.

but I think, doing arbitration is always beneficial. because this is always a way to increase profits, every exchange has a different volume and volume. so we can use it to advance potential coin review. to be able to take advantage there. without any reason to make transaction fees an obstacle

[tora]

There are a few problems with arbitrage. Although you may find a good price difference between exchangers there will be a time difference for the transaction. Price could change in that time. Withdrawal fees from exchanges can eat into profit.

[stocksharp]

Stage 1 :
Connection to as many exchanges as possible and reading their order books.

Hi booz,

We doing almost the same things for Stage 1. Please look our proj about multiple exchange connections https://bitcointalk.org/index.php?topic=2402675.0

[Reinz12]

First time i did arbitrage was yesterday,  seems not work well for me.  My opinion before do arbitrage,  you need calculate timer before moving your coin from one exchange to other exchange,  too slow make you lose your profit you want earn. Sometime did't work well, Only who can stay online and have good connection can do arbitrage successfully

[Zzzetor]

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.