When it make sense to cancel an order?
You are starting with the wrong foot: if you buy 1@300, you do so because you can sell 1@301 '
immediately'.
Hence, no standing limit orders to cancel ever exist, in arbitrage (unless you are big, but i'm assuming you are a little barracuda).
How to analyze the price?
Don't. That is speculative arbitrage, and require quite a bunch of bananas to throw around.
Only analysis you have to do is this:
X > Y ? "do it" : "don't do it"When it is appropriate to buy and sell?
When buy price in a market is lower than sell price in another market,
at the same time.
Bonus tip: account rebalancing
Consider doing arbitrage between cryptocurrency pairs: easy to rebalance the accounts, can be done multiple times a day, even automated in some cases
(good for little barracudas with big brain and small pockets).
Hope it helps