Cryptometer Bot: Progress and Stats
It’s been almost two weeks since our Cryptometer Bot 2.0.0 was released publicly. It has already proved to be a quite effective tool for seizing the opportunities arising on the turbulent cryptocurrency market.
These two weeks were extremely interesting to watch from a trader’s point of view. With market analysis and an understanding of tendencies, there is no problem in “sell high, buy low.” Cindicator’s Cryptometer Bot is helping traders find the right arbitrage opportunity and profit in everyday trading in a simple way. And, as per our statistics, these two weeks could be extremely profitable for Cryptometer’s users.
Community Reception
We have received much positive feedback from our community participants, who have been using the bot since its release. Here are some screenshots:
We have also gained valuable feedback about possible improvements and about adding new currency pairs. In addition, member of the community created a useful video guide on how to install the bot.
Examples of Arbitrage Opportunities
Let’s take a look at some examples of the arbitrage opportunities made possible with the bot:
Last week’s Bitcoin rally and later correction added various opportunities for traders not only to benefit from short selling or long trades but from arbitrage as well. As we can see here, the BTC/USD exchange rate of Kraken and Binance was significantly different.
The same story happened with Bitcoin Cash and XRP and Ripple:
One of the most interesting opportunities happened with Neo:
During the massive fluctuations of this cryptocurrency price, price differences on various exchanges rose up to 30%, which provided amazing arbitrage opportunities.
Check this case as well: after a massive selloff in crypto, about 7:45 pm UTC on November 29, there was a flash crash on the NEO/USD pair on Bitfinex that lasted five minutes. NEO/USD on Bitfinex plunged to $3.7385, while on Bittrex NEO/USD was priced at $32. It’s almost impossible to catch such an occurrence manually because no one can monitor dozens of pairs and exchanges 24/7. That’s why Cryptometer Bot can be extremely useful.
Arbitrage Statistics
Take a look at the statistics on the overall number of different threshold breakthroughs that happened during last couple of weeks.
You can also discover more data on threshold breakthroughs via this link:
https://drive.google.com/open?id=1gj4kAUmClG-BNk47WrdJ1Eko5etdP3eX
Arbitrage Duration
The common truth is that arbitrage opportunities usually have very tight time frames. Let’s have a look at recent statistics on arbitrage for BTC/USD and XMR/USD.
It can be observed that, in most cases, one has a short amount of time to arbitrage opportunities, but there are some that last longer. Almost 90% of arbitrage opportunities happen in the 0–5 minute range and 97% in the 0–10 minute range. But Cryptometer observed about 3% of opportunities occurring in the 10+ minutes range. To get more insights on the duration of arbitrage opportunities, follow this link: https://drive.google.com/drive/folders/12qCC3LWAP6JH0-uvtJ_cNq8Cf4HJxak3
Strategy Example
So, how is the bot used, precisely? Here is just a brief example (it’s not investment advice) of one possible applicable strategy from our trader Nodari Kolmakhidze:
“I think it’s better to split your funds in USD and BTC between two top exchanges you like, let’s say exchange A and B. So when, let’s say, BTC on exchange A is 3% cheaper than BTC on exchange B, you could just buy BTC at exchange A and sell your BTC at exchange B. Now you have locked in your 3% gross profit, and you should just rebalance your position for next arbitrage by sending BTC from exchange A to B and send USD from exchange B to A to get funds balanced again.
Let’s say you have $20,000 and two BTC.
You split them between two exchanges: Exchange A will have $10,000 and one BTC and Exchange B will have $10,000 and one BTC.
So let’s say you get an alert about a 3% arbitrage opportunity between exchanges A and B. Let’s say the BTC/USD ask at Exchange A is $10,000 and the bid on Exchange B is $10,300.
So you just buy one BTC on Exchange A (for your $10,000) and sell one BTC on Exchange B.
Now you have two BTC on Exchange A and $20,300 on Exchange B.
So now you can transfer one BTC from exchange A to exchange B and $10,150 from Exchange B to Exchange A.
And your balanced ending state is Exchange A at $10,150 and one BTC and Exchange B at $10,150 and one BTC.
Please don’t forget to take into account fees and transaction costs. They can turn your profit in a loss, especially if you are using a small trading capital.
You can perform these trades in less than one minute and then after that you can balance your funds again.”
You can get much more info about the Cryptometer Bot and the opportunities it provides in the following article. The pricing model is also explained there.
Happy trading,
Cindicator Team.
Risk disclosure:
Everything we post and release is for analytical and educational purposes only. Futures, options, equity, and cryptocurrency trading involves the risk of loss. Any opinions, news, indicators, products, and other information contained in our website and platform is provided as general market commentary/analysis and does not constitute investment advice or a recommendation to buy or sell any type of security, futures contract, cryptocurrency, or foreign exchange contract.
All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Third-party information provided for Cindicator Bot from crypto exchanges is meant for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information provided is not warranted as to completeness or accuracy and is subject to change without notice.
