How to Arbitrage Time for Cryptocurrency

[crabby]

Hi Everyone,

Happy New Year!

This may sound like a strange topic, but I wanted to take a moment to discuss the "arbitrage of time". That's right, time.

You might be wondering, "what do you mean by arbitrage time?"

Well, there are a few things for which we have become certain in the crypto market. One of these things is that in the long term the cryptocurrency community will continue to expand, grow, and foster new advancements. This presents a so-called "arbitrage" opportunity.

I speak about it in detail in this article:

The Crypto Strategy to Arbitrage Time

Let me know what you think! I would love to hear the discussion on this idea.

[zeze18]

arbitraging these days is hard to be profitable due to exchange trade & withdraw fees, settlement times, volatility, and so on.

i especially dont think daily rebalancing of my "portfolio" with your bot and incurring more exchange fees will improve my position.

Yeah moreover there are so many websites that provide the list of prices between exchanges so people are will be not making any huge price gap between exchange, so right now it's almost impossible to do a profitable arbitrage.

[crabby]

arbitraging these days is hard to be profitable due to exchange trade & withdraw fees, settlement times, volatility, and so on.

i especially dont think daily rebalancing of my "portfolio" with your bot and incurring more exchange fees will improve my position.

I appreciate you sharing! We performed a number of studies comparing rebalancing to hodling and we found some interesting results. I would encourage you to check them out and let me know what you think!

How Often to Rebalancing Your Crypto Portfolio

Happy to answer any questions about the study!

These results are unrealistic. you're basing performance exclusively on backtesting, which uses historical data instead of real-time trading data. The daily close price is much different that what actually went on intraday... Your data doesn't seem to include trading fees either... if rebalancing hourly was profitable, then we'd see the big funds like coinbase index fund or bloomberg crypto index doing similar.

Thank you for sharing! I would like to clarify a couple of things.

1. We do not use daily close price. We use actual order book data taken directly from the exchange. That means the open orders that were actually available on the exchange at the exact time we simulate the rebalance.
2. Yes, we absolutely include trading fees. This is discussed in the article.

Please let me know if you have any other questions! I'm more than happy to discuss the results in detail.

[CjMapope]

arbitraging these days is hard to be profitable due to exchange trade & withdraw fees, settlement times, volatility, and so on.

i especially dont think daily rebalancing of my "portfolio" with your bot and incurring more exchange fees will improve my position.

I appreciate you sharing! We performed a number of studies comparing rebalancing to hodling and we found some interesting results. I would encourage you to check them out and let me know what you think!

How Often to Rebalancing Your Crypto Portfolio

Happy to answer any questions about the study!

These results are unrealistic. you're basing performance exclusively on backtesting, which uses historical data instead of real-time trading data. The daily close price is much different that what actually went on intraday... Your data doesn't seem to include trading fees either... if rebalancing hourly was profitable, then we'd see the big funds like coinbase index fund or bloomberg crypto index doing similar.

Thank you for sharing! I would like to clarify a couple of things.

1. We do not use daily close price. We use actual order book data taken directly from the exchange. That means the open orders that were actually available on the exchange at the exact time we simulate the rebalance.
2. Yes, we absolutely include trading fees. This is discussed in the article.

Please let me know if you have any other questions! I'm more than happy to discuss the results in detail.

ya idk man, i was kinda interested (your a good wordsmith), but then i saw ye, it was a bot... hard to trust things with your keys man (i assume it would need spending keys :O )
i dont thihk you understand that crypto markets are NOT like traditional markets, old school traditional TA and bots are a quick way to go broke here in my experience
so im good thanks.   keep in mind posting " positive results" means nothing either really, as thats just crypto baby, shit pumps everyday 200% somewhere, buy anything low and wait, aint rocket science

[naikturun]

well arbitrage is buying a coin on the exchange and then selling it on another exchange at a higher price just like trading, but looking for differences in price on each exchange.
for example you buy coin A at the price of 0.1 in market A and then sell it at the price of 0.12 in market B.
so you take advantage of the price difference.
but in this market situation is better trading than do arbitrage, it more easy to earn than arbit from trade when market rise.

[samuraijin]

maybe a lot of people who arbitrate at the time of the rise in altcoin a few days ago and also maybe the BSV has increased sharply many people do arbitrage, but whatever I have only a little capital can not get big profits when doing arbitration, because only those who have large capital will get a big profit even though the difference in price is small