how to arbitrage well ?

[Bitcoin_BOy$]

Hello i want to create a tool to help bitcoin trader i have some question :
why cancelling an order ?
how to analyze the price
when buy when sell
Tell me your ideas to develop this tool



Tool Demo : http://elmeda.net/testor/test/run.php

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[TRex95]

IMO it is generally not very profitable to arbitrage. The market is generally too efficient for most people to be able to profit that is worth the risks.

Also if you arbitrage you will likely need to channel a large amount of money through your bank account(s) which will potentially result in the closure of your bank account(s)

[calchuchesta]

Bitcoin's crazy volatile prize would make the bot have an headache.

[sonofacoin]

Interested to see what you come up with

[cakir]

My arbitrage rule; always follow (or make follow by a software) prices at minor exchanges.
People just forget to cancel their high bid orders on those exchanges.
Also calculate your profit and don't forget "transaction fees" to include it.

[Bitcoin_BOy$]

My arbitrage rule; always follow (or make follow by a software) prices at minor exchanges.
People just forget to cancel their high bid orders on those exchanges.
Also calculate your profit and don't forget "transaction fees" to include it.

Thank i will start this week

[grappa_barricata]

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  

[bitcoinmining]

It's better to use exchanges without fee and it's also good for finding high prices when you sell on those sites...

[ObscureBean]

The thing is unless you have assets on most exchanges, it's pretty difficult to profit from arbitrage because of price volatility. The time it takes for your BTC/coin deposit to clear is usually far too long. I've made some nice profits through arbitrage a few times but every time it was pure luck. As someone else said in an earlier comment, a good idea is to monitor the smaller exchanges where a lot of times people forget about their open orders  

[dothebeats]

You really need to have plenty of assets and time to arbitrage "well." You also need to find exchanges that offers little exchange fees in order to be succesful in this field. You also need to have patience and be alert because the price at the exchanges is very volatile; it changes so fast that missing one opportunity will cause a lot of regrets on your side.

[Bitcoin_BOy$]

Please bring idea to made a tool that can help traders

[BitCoinPokerBro]

very carefully

[botany]

You really need to have plenty of assets and time to arbitrage "well." You also need to find exchanges that offers little exchange fees in order to be succesful in this field. You also need to have patience and be alert because the price at the exchanges is very volatile; it changes so fast that missing one opportunity will cause a lot of regrets on your side.

Forget about missing opportunities. The volatility can convert so called arbitrage transactions into open punts.

[s2ck]

Keep in mind that the main arbitrage opportunities lie within the difference of country's.
I do agree that e.g. for American exchanges there aren' good arbitrage revenues as the
market's here work pretty efficient.
As already mentioned, minor and small exchanges do offer the best opportunities here, but these
are usually also those who are lacking trust and safety.

I see the biggest chance right now in arbitraging within the exchanges of different countries, e.g
the US and China. Unfortunately, the effort needed would be huge. One would most likely need representatives
in both country's aswell as considering the CNYUSD price influence.