Capture the instantaneous price difference between exchanges, and execute fast transactions to complete the process of buying low and selling high.
Low risk, high volume.
- Buying spot positions is not arbitrage, and there is a risk of ups and downs (the gold standard only needs to add a contract exchange, which is equivalent to automatic hedging)
- Contract trading, or borrowing currency, in this mode, there is a risk of triggering a stop loss if the price skyrockets. The loss is determined by the possible high-buying-low wheat spread (the strategy has placed restrictions on the position, the less the margin, the stricter the opening conditions)
At the same time, if the contract position needs to pay capital fees or loan interest, if the rate is too high, the arbitrage income may not be able to cover the expenses. (The strategy has maximized the possibility of avoiding the scenario of paying the funding fee. The premise of opening a position is to earn the funding fee)
- There is a stop loss after the position is unbalanced due to the transaction of only one side of the bilateral order, and the risk of the rise and fall of the unilateral position after the stop loss fails.
- Various bugs, failures, hacking, and even theft may occur in digital currency exchanges. Similar black swan events may affect one or several transactions in the light of the cases, and may cause heavy losses in serious cases.
1 Support concurrent monitoring of spot and contract trading pairs on multiple exchanges to capture arbitrage opportunities,
2 Market neutral strategy, without price forecasting and trend judgment, to obtain stable and reliable income with almost no risk
3Complete risk control for opening positions and high latency to give up opening positions, perfectly avoid the risks caused by the downtime of the exchange, and freely set the number of orders and the slippage of opening positions to improve the success rate.
4 Supports custom arbitrage currencies, which can avoid trading pairs with poor liquidity
5Insufficient margin rate will automatically close the position to avoid losses caused by unilateral forced liquidation
6. The spot position is balanced to avoid the need to manually withdraw money to balance the funds.
7. Hedging and closing positions, one-click liquidation, and manual permission and prohibition of transaction buttons.
About the effect
It has a lot to do with the market
Actual returns depend on the following factors, in order of importance:
- Market conditions. Including the choice of exchanges and trading pairs. The larger the trading volume, the higher the turnover, the more active the transaction, and the more arbitrage opportunities appear when the dealer pulls and smashes the market.
- Handling fee. In the same market, if you use the two-thousandth of the handling fee to run the strategy, you may earn 1 yuan a day, and if you use the 1/10,000th of the handling fee, you may earn 100 yuan a day. Good market conditions are hard to come by. When the market is good, everyone can make money with arbitrage; but when the market is normal, it is higher than the handling fee, which is more obvious in mainstream currencies. The reason is very simple. When there is a price difference, other people’s handling fee is very low, and you can make money arbitrage, but if you trade at your high handling fee, the difference may not even cover the handling fee.
- Server and network performance. In the same market and the same handling fee, your network is better than others, you can get trading signals earlier, place orders earlier, and the income will be better. For example, some professional quantitative traders will host the server in the same computer room (co-location) of the exchange to reduce the network delay as much as possible, even if it is expensive to reduce the delay of one thousandth of a second.
All in all, the biggest factor affecting earnings is market conditions. Choosing a currency that fluctuates frequently and has a high turnover rate has an advantage over a currency that does not fluctuate and has a low turnover rate. Under the same market conditions, it is necessary to reduce the handling fee as much as possible. Those that can be deducted through point cards, platform coins, and those who use invitation codes to enjoy discounts must be used. These reduced handling fees will be converted into your profits. Otherwise, it all contributes to the exchange. The following are the handling fee policies of major exchanges. Other exchanges have similar policies and need to be studied in detail.
- Account type, such as OKX, if your assets are above 5Wu, you can switch to the cross-margin account mode, the capital utilization rate will be higher, and you can automatically borrow coins, and the higher the VIP level, the higher the number of coins you can borrow, if You cannot borrow money in your account, and you cannot sell the spot at the beginning of the period. You must wait until you buy the spot and sell the contract before you can hedge the spot. In this way, there are fewer arbitrage paths at the beginning of the period. Profits will be lower at the beginning.
Charging method 1: Hosting share (20%-30%) (API may not be provided) requires prepaid commission of 300U or more
(The escrow principal is at least 10,000USDT, and the custodian fee is free through invitation registration, and the principal reaches 50,000 USDT through invitation registration and free operation fee + custodian fee FMZ platform operating fee 36U/month, custodian fee 10U/month)
Charging method 2: rent on a monthly basis, the minimum starting from 300U/month according to the amount of funds, and adjusted according to the market situation (there are discounts for registered accounts through invitation)
Host Configuration Recommendations
CPU & Memory 2 Cores (vCPU) 1 GiB
Operating system CentOSReference