Cryptocurrency Triangular Arbitrage November 2018 Update

Discussion of current trends, market research and software development concerning the Crypto Triangular Arbitrage code developed by Blockchain Engineer - Crypto Trading Bots Joaquin Roibal . We discuss the background development of this project, a very large recent update and future areas of research & development.

If you are new to my blog, you may want to read up on my introductions, code and videos on Triangular Arbitrage with Cryptocurrency. You can watch crypto trading bot tutorial videos on YouTube here: https://www.youtube.com/channel/UCVTnyT4fUxYkvawbggo8-AQ

Introduction and Background — Cryptocurrency Arbitrage

Cryptocurrency Arbitrage is the process of profiting from the price difference in two different markets, for example, buying in one geographic region and selling in another. One of my favorite topics to discuss is the strategy of Triangular Arbitrage, which attempts to profit by ‘triangulating’ the arbitraging of coins by purchasing 3 different coins based upon pre-determined calculation process which I have covered elsewhere.

Over the past few weeks there has been tremendous development, discussion and new insights into the Crypto Triangular Arbitrage markets through my public telegram groups, as well as my private crypto trading mastermind group.

This graph represents the first time a profitable tri arb opportunity (black crosses above black line) have been visualized using this methodology, primarily due to the low data collection time of one data point every 20 or 30 seconds.

This blog post will cover recent developments and areas of focus on triangular arbitrage with cryptocurrency, using a python script developed by Blockchain Engineer - Crypto Trading Bots .

Working Output of Triangular Arbitrage Bot

In addition to the output of the crypto tri arb bot, we have continued to run the data collection and visualization which has provided incredible insight into the behavior of a particular triangular arbitrage market over a 3–15 minute time period and has aided in the development of new strategies we are currently pursuing. Please see some of the graphs below which show the incredible dynamic nature of these markets, as well as the effect of price changes on the calculated triangular arbitrage profitability (black crosses).

Great visualization of Triangular Arbitrage Market, showing very interesting behavior and nearly profitable opportunity on right-hand side of graph where black line and crosses converge.

This graph demonstrates the highly volatile nature of low-cap coins and their effect on triangular arbitrage markets. On the upper right-hand side we can see the black line (price of ETH/BNB exchange rate) converge with the black crosses (price from triangular arbitrage market).

We are continuing to develop the data collection and analysis capabilities of the bot, which we may make available to a website or through an email.

November 2018 Crypto Triangular Arbitrage Python Update

I am very grateful for the contributions made by community members in particular Nathan (@Penl0 on twitter) in order to bring a major update for the triangular arbitrage bot for trading bitcoin / cryptocurrency available on my github (which is now seeing a steady stream of updates), as well as running the triangular arbitrage bot monitoring software for a number of days which has led to some fantastic visualizations and insights. Recent code additions now allow the user to search through more than 200 coins (tri arb markets) on Binance.com , and begins following and/or trading the most profitable (at that time) market. Because these tri arb opportunities last fractions of a second (or 2–3 seconds at most) it is very difficult to visualize this phenomonena, and these graphs are more for gauging the long-term behavior as well as provide insight into these low-cap tri arb markets.

With these updates and ability to monitor and visualize the tri arb markets in such a way, we are now monitoring 200+ coin / pairs / tri arb markets, and will be initiating trades when a satisfactory profit margin is achieved. These updates have been made available to the public github repository, while myself and others have developed a “Crypto Triangular Arbitrage Professionals” trading group with private code which is able to monitor in much greater quantity and detail.

Future Areas of Focus

Public Github Code: In November 2018 a major update to the publicly available github included the addition of over 200 coins, ability to email results (rather than tweeting) and additional minor fixes. This project has been incredibly successful with 64 forks and 119 stars. We have a few more significant modifications which will be added within the next couple of days.

Private Code: We have begun to experience great results from a private, faster version of the tri arb bot. NOTE: Code is currently not for sale. We decided to develop a private code-base due to the experience and suggestions of many members in the fact that triangular arbitrage bots will be competing for profitable opportunities with one another. Additionally we have decided to keep a private code-base for research purposes to inform future trading strategies.

Conclusion / Future Research

In Conclusion, research and development of the crypto tri arb bot has continued over the past 5–6 months and now we have a working bot which will profitably place trades based on the triangular arbitrage strategy. We will continue to focus on the development of this bot including User Interface. As I mentioned previously, although we are not currently allowing the code to be sold or accessed by outside-parties, we may at some point in the future decide to open up private crypto tri arb bots to select individuals. These details are in the works.

To help you to learn to implement this code as a profitable crypto trader, I have many online resources available. For example:

1. Youtube Channel covering Crypto Trading Bot Tutorial Videos: https://www.youtube.com/channel/UCVTnyT4fUxYkvawbggo8-AQ
2. Medium (Blog) about crypto trading bots: https://www.medium.com/@BlockchainEng
3. Twitter: http://www.twitter.com/BlockchainEng
4. Email: realestateblockchain1@gmail.com
5. Chat Directly Via Telegram: https://t.me/BlockchainEng
6. Bitcoin Trading Bot Software Telegram Group: https://t.co/YlGP1zvvw4
7. LinkedIn: https://www.linkedin.com/in/joaquinroibal/
8. Cryptocurrency Trading Software LinkedIn Group: https://www.linkedin.com/groups/12121918