Great content Spencer. I think the problem with cross-exchange arbitrage opportunities is the delay to transfer your coins between the two exchanges and the transaction fees involved in the operation.
Great video...I tried arbitrage trading a while back wherein the bot would buy say BTC for USDT, then buy LTC for BTC and then sell the LTC for USDT. However there were too many variables to control and I eventually found it to be loss making although in theory it sounded good. Can you try the same thing and see if you come up with a different view. Would be nice coding exercise.
Great and easy to understand content, but I have a question regarding the profits. These are unrealised gains surely as if you were to sell your BTC you would then be using the ask price, which would likely erode any possible gains made?
Nice video - I think oyu should apply the taker fee 100% and not use midprice. If you want to execute arb you are going to have to eat liquidity - or else you might get stuck in a lim order
So with the API and coding would transactions between exchanges be faster? I imagine if I have 1 BTC and it's priced 18k on my exchange and 20k on another, that I could then simply send the BTC to the second exchange and sell it for profits. Transaction time would be slow but would there be a way to automate it?
So, trading between exchanges using a public API will inevtiably slower than someone who is directly connect to the exchange. (Those are what the big players do); It's like trying to win formula 1 with a lama. Theoretically yes. You can capitalize on that spread between different exchanges that trade that commodity. The automation aspect would be as seen in this video. You create a rules based approach and make your algorithm execute based on those signals.
dunno is yor ebay example actualy arbitrage as price culd change on ebay b4 pens r sold? isnt tht y its typicaly applied to finace markets as u can make the trade in an instant ?
Arbitrage is essentially finding inconsistent prices of the same object. You technically COULD do arbitrage without coding. But, I would imagine that being quite difficult and the margins slim for equities. This might be a different story for e-commerce or pawnshops.
Can anyone recommend a good trading platform for automated cross-exchange arbitrage trading (for passive income). I don't mind if there are fees involved. Thanks! 😊
