Bitstamp to MTGox Market Arbitrage

[BTM]

Hello

Lately I have been testing to perform operations of Market Arbitrage between Bitstamp and MTGox. The results are pretty good (in euros I get a return of 9% on average per transaction) although the recovery of capital from MTGox is very slow (about 25 days).

The risks are minimal (does not depend on the price of BTC, only confidence in investment markets) so that you may be interested.

To facilitate the process I created an application that checks the differences between the two markets and runs a simulation, considering the fees of both traders. It works both with USD and EUR.

I made another version that executes the actual operations and allows you to set notifications in case the operation is really profitable.

You can test the first version here.

http://www.megafileupload.com/en/file/491990/BMT-DEMO-zip.html

Any suggestions are welcome.

To use it, simply unzip the file in a folder and run the server.

[k3dlg]

Sounds interesting. Have to give it a try.

[blackice2013]

Hey!

This looks great!

Been trying to do this Market Arbitrage manually last weeks, but it's a bit complicated.
With this utility seems SO easy.

Simulations are giving amazing results...

Have you got good earnings with this method?

How can I get the full operative version?

Thanks.

[jonanon]

I think you'll find that withdrawing fiat from Gox takes a lot longer than any 25 days 

[blackice2013]

Well.

Probably withdraw will take 25 days or even more, but I cant see any problem on that.
I mean.. the important thing is that money comes back to me

For example:
I start a trading cycle of 100€ dayli (getting about 10€/14€ for operation) during 1 month (3000€ investment), i'm getting about 300 / 400€ of porfit without assuming risk.

Must wait 30 days to get my money? ok. I'll wait :p
If you have enough cash to keep cycles moving, you can earn 600/900€ monthly easy with this method.

I'll definitely will give it a try.

BTM please.. can you tell me what to do to get the full version of your program?

Thanks

 

[BTM]

If you want to try it, just download it and you can see how it works. If you are really interested contact with me at the email that appears. I can give you a full copy for free, if you help me to test everything

Well.

Probably withdraw will take 25 days or even more, but I cant see any problem on that.
I mean.. the important thing is that money comes back to me

For example:
I start a trading cycle of 100€ dayli (getting about 10€/14€ for operation) during 1 month (3000€ investment), i'm getting about 300 / 400€ of porfit without assuming risk.

Must wait 30 days to get my money? ok. I'll wait :p
If you have enough cash to keep cycles moving, you can earn 600/900€ monthly easy with this method.

I'll definitely will give it a try.

BTM please.. can you tell me what to do to get the full version of your program?

Thanks

 

[JCviggen]

The problem with your system is that you assume sending funds (in any form) to Mt. Gox is risk free.

Gox is a black hole which has to implode at some point. That or they will get bought by a competing exchange. There is no guarantee you'll get your funds back. People have been waiting months for a transfer to go through, and Gox has been making it harder for people to even initiate a withdrawal for a while now. These are not good signs. Furthermore it is easy to see why this situation will not resolve itself easily: their unrealistic BTC prices (because of the trapped cash) mean the inflow of currency will have dried up almost entirely. Just a few arbitrage geniuses left, who haven't been following the forums very much.

[cozytrade]

Been trying to do this Market Arbitrage manually last weeks, but it's a bit complicated.
With this utility seems SO easy.

In the current market situation, honestly I don't feel we need any tools for this exchange combination.. Always profitable in theory. Buying BTC@anywhere as much as possible and sell BTC@MtGOX as much as possible. If we ignore money/BTC transfer time-lag and stuck risk, it is as simple as that. What made you complicated?

[jonanon]

The problem with your system is that you assume sending funds (in any form) to Mt. Gox is risk free.

Gox is a black hole which has to implode at some point. That or they will get bought by a competing exchange. There is no guarantee you'll get your funds back. People have been waiting months for a transfer to go through, and Gox has been making it harder for people to even initiate a withdrawal for a while now. These are not good signs. Furthermore it is easy to see why this situation will not resolve itself easily: their unrealistic BTC prices (because of the trapped cash) mean the inflow of currency will have dried up almost entirely. Just a few arbitrage geniuses left, who haven't been following the forums very much.

I'd go along with that.

These people who think they've spotted a fantastic opportunity to make a lot of money quickly using arbitrage - which most of them would likely not be able to explain - obviously can't be that bright otherwise they would put 2 and 2 together and first wonder why other people who have been in the game a lot longer are not doing it.

[BTM]

I know that on last times MTGox seems to have a problem with the withdrawals, but at least until now I have all my money back (less the abusive fee for bank transfer) in ranges of time that varies from 9 days to 26 days. I must say that I try to make withdrawals of small quantities every day, trying to minimize the quantity that I have in MTGox.

In my last two operations seems that the diferences of prices between the two traders has incremented (net profitability about 11,5% working with euros).

The problem with your system is that you assume sending funds (in any form) to Mt. Gox is risk free.

Gox is a black hole which has to implode at some point. That or they will get bought by a competing exchange. There is no guarantee you'll get your funds back. People have been waiting months for a transfer to go through, and Gox has been making it harder for people to even initiate a withdrawal for a while now. These are not good signs. Furthermore it is easy to see why this situation will not resolve itself easily: their unrealistic BTC prices (because of the trapped cash) mean the inflow of currency will have dried up almost entirely. Just a few arbitrage geniuses left, who haven't been following the forums very much.

[5thStreetResearch]

why would you possibly need to create a bot to do this?  This price on gox is $150 off market, you could have your family pet trade this for you and make money if you can actually withdraw from gox.

[TrustedPartner]

I don't get it?  Why trade at the exchanges?  Just use the price of the exchange to transact or strike at a price when doing an exchange.  Who said we have to use the exchanges to arbitrage?  That's the whole point.  Buy low and sell high?  Does it matter if you are long btc?  Since it will go to infinity.

Has anybody cashed out at any of the exchanges?  What do they charge to realize money?

[BTM]

The benefit differences across markets ranging from 8 to 17%, at least so far. I prefer to check with a single click if the operation is not profitable, but if it is very profitable.

why would you possibly need to create a bot to do this?  This price on gox is $150 off market, you could have your family pet trade this for you and make money if you can actually withdraw from gox.