Features & explanation


What can a Arbitrage bot do?

The Arbitrage bot capitalises on small changes between markets.

The definition of Arbitrage as stated by investopedia: "Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient."

What does the Arbitrage bot Cost?

A Hero subscription (also for papertrading)

How does the Cryptohopper Arbitrage bot work?

Market Arbitrage (Triangular Arbitrage)

The Market Arbitrage bot will look for market inefficiencies within one exchange. The way the Hopper will proceed is as follows, the hopper will attempt to increase the amount of the coin(s) you have selected as base coin. It will do this by taking advantage of price differences between the coins available on your exchange. More specifically, it will do three different trades to increase the amount of the chosen base coin.

For example, say that you have BTC as base coin. That Hopper has found a market arbitrage opportunity that includes the coins Ethereum and Litecoin. First, it will buy Ethereum (48 ETH) with Bitcoin (1 BTC) on the exchange (sell Bitcoin). Secondly, the Ethereum (48 ETH) the Hopper has just bought is used to buy Litecoin (153 LTC). The final step is to buy back Bitcoin (1.005 BTC), completing the triangle and increasing the initial amount of Bitcoin.

Exchange Arbitrage

The Arbitrage bot of CH allows you to trade discrepancies in the market, capitalising on changes in market price between the same pairs on different exchanges.

First of all, the arbitrage bot on Cryptohopper does not send funds among different exchanges (as you might expect from arbitrage). Therefore, we don't need permission for ''withdrawal rights'' through the API.

Secondly, in order to do exchange arbitrage, you need to own the coins for which you would like to arbitrage. For example, your base coin is USD and you have seen that normally ADA, ATOM and EOS are prone to offer arbitrage opportunities among certain exchanges. Then, you will need to have all these coins on two (or more) exchanges you want to do arbitrage on. Now you are set and ready to start taking advantage of price inefficiencies.

Thirdly, let's analyse how this mechanism works. Let's imagine that there is an arbitrage opportunity between USD (your base coin) and EOS (the coin offering the arbitrage opportunity). You own USD and EOS on exchanges A and B. On exchange A, the price of EOS is 3.10 and on exchange B it is 3.02. Therefore, there is an arbitrage opportunity since EOS is more expensive on exchange A.

A manual arbitrage trade will consists of buying EOS on exchange B and selling it for a higher price on exchange A back to USD. Then, your portfolio would result in a USD gain. An automated Cryptohopper arbitrage trade would do it differently but results in the same USD gain. Let's recall that you own USD and EOS on both exchanges. As we know, the goal is to keep the same amount of EOS while increasing your total USD amount.

Since you want to increase the amount of USD, you would, for example sell 2000 (expensive) EOS on exchange A (for USD). At the same time, you would also buy 2000 EOS (cheap) on exchange B to maintain the same amount of EOS you had before the trade. It could happen that one of your funds of a specific coin is depleted on one of your exchanges, then it will be necessary to move funds manually from one exchange to another in order to start the process again.

What does the Arbitrage bot Cost?

An adventure (exchange arbitrage) / hero subscription (both exchange and market arbitrage)


Video's



Setting up the Arbitrage bot

Selecting the Arbitrage bot

When creating a new hopper, you will be prompted with three choices:

  • Trading Bot
  • Arbitrage Bot
  • Market Maker

Go with the Arbitrage option


The Basic Settings

The Basic settings differ a bit from the hopper you are accustomed to.

First up, the Basic settings

    • Name

Name your hopper

    • Max open time buy orders

The number of minutes a buy order remains open before the order is cancelled.

    • Max open time sell orders

The number of minutes a sell order remains open before the order is cancelled.


Then, the Exchanges you want to arbitrage on

Make sure to switch on any exchange that you want to arbitrage on. NOTE that you need currency on each exchange in order to arbitrage!


Lastly, the Notifications

  • Notification on Trade
  • Notification on trade error
  • Notification on cancelled order

The Arbitrage Settings | Coins & Amounts

    • Percentage Sell amount

Set the percentage which it should use to create the amounts which are being traded. Note that these look at your arbitrage amounts per market

    • Arbitrage Amounts per market

Fill in how much you want to trade at a time. Note that you need this currency in both exchanges in order to successfully arbitrage


The Arbitrage Settings | Selected Markets

in here you can select the market pairs that you want to do arbitrage on, make sure to have currency in all markets that you select! Before all markets and coins become visible like in the screenshot, you will first have to save your config.


The Arbitrage Settings | Exchange arbitrage settings

In here you can utilize exchange arbitrage specific settings.

    • Minimum profit

The minimum profit you want to make on an arbitrage trade.

    • Max open time arbitrage

The number of minutes an arbitrage remains open before the arbitrage is cancelled.

    • Max simultaneous arbitrages

Enter the maximum number of simultaneous/concurrent arbitrages. The minimum is 1 and the maximum is 5.

    • Use buy rate

Which buy prices should the exchange arbitrage check. Default is lowest ask.

    • Use sell rate

Which buy prices should the exchange arbitrage check. Default is lowest ask.

 

The Arbitrage Settings | Market Arbitrage Settings

In here you can utilize exchange arbitrage specific settings.

    • Minimum profit

The minimum profit you want to make on an arbitrage trade.

    • Max open time arbitrage

The number of minutes an arbitrage remains open before the arbitrage is cancelled.

    • Max simultaneous arbitrages

Enter the maximum number of simultaneous/concurrent arbitrages. The minimum is 1 and the maximum is 5.

    • Use buy rate

Which buy prices should the exchange arbitrage check. Default is lowest ask.

    • Use sell rate

Which buy prices should the exchange arbitrage check. Default is lowest ask.

    • Order Sequence

Select in which sequence you want your market arbitrage orders to be placed.


The Arbitrage Settings | Revert and Backlog

Enable/disable and configure automatic reverting/retrying of failed market maker orders.

    • Move failed to backlog

When enabled market maker orders which are failed or cancelled will be automatically moved to your backlog.

    • Automatic match backlog

When enabled market maker orders moved to the backlog will be automatically matched together if it will result in a correct and successful match: same amounts, same price or profitable.

    • Revert cancelled orders

Select if you want to revert cancelled and failed orders. If for example a sell is successful and a buy order is cancelled, the buy order will be placed again at a different price and the profit/loss will be recalculated.

    • Only revert/retry with profit

can be either enabled or disabled

    • Maximum loss %

If configured the ask/sell price of the sell order will be increased with this percentage.

    • Use revert pricing

Select what type of pricing you want to use for reverting


The Arbitrage Dashboard | Open orders

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.


The Arbitrage Dashboard | Open exchanges markets and backlog

This dashboard will list all current open exchange arbitrages, the open market arbitrages and backlog items in your hopper



The Arbitrage Dashboard | Latest arbitrages

The latest arbitrages dashboard shows you what trades were made, and if they were successfull or not.


The Arbitrage Dashboard | Hoppers enabled / disabled

In here you


The Arbitrage Dashboard | Last 5 trades

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.


The Arbitrage Dashboard | Exchange arbitrage results

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.


The Arbitrage Dashboard | Market arbitrage results

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.


The Arbitrage Dashboard | Manual order

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.


The Arbitrage Dashboard | Totals in assets on exchange

The open orders dashboard, list all the active orders that are currently being used by the hopper. if the hopper is in the middle of an arbitrage trade, it will show it here too.