Algoritmic trading strategies & articles

JVSGL

newbie

Activity: 3

Merit: 0

Quote from: Bitcoin_Arena on July 05, 2022, 03:29:34 PM

You got it all wrong, bro... I suggest you read the article that OP just shared to get you started in understanding well what arbitrage trading is (https://medium.com/geekculture/automated-triangular-arbitrage-of-cryptos-in-4-steps-a678f7b01ce7)

Quote from: Oshosondy on July 05, 2022, 02:54:28 PM

I can not count arbitrage trading as spot trading, though if you have the knowledge of arbitrage trading, it means you have the knowledge of spot trading but they both differ.

If I may ask, which markets do you use to buy and sell assets when carrying out arbitrage trading?
Aren't they spot markets? Or you have other special types of markets in mind?

Quote

In spot trading, traders take advantage of buying at lower price of a coin like bitcoin, and they will sell at higher price to make profit.

Spot trading means you buy or sell the asset at a current market price and the delivery of the underlying asset is done almost instantly (on the spot)
To perform arbitrage trading, you use a spot market to execute the buy and sell orders.

Quote

In arbitrage trading, traders look for price of coins on different exchanges and move the coins from one exchange to another, converting it to stable coin or fiat to make profit.

Whether same exchange or different exchanges, they are still spot markets.

Also, there is what we call triangular arbitrage. This can be done in one exchange. For example, Buy BTC using USDT (BTC/USDT) >>> Buy ETH using BTC (ETH/BTC)>>> Sell ETH for USDT (ETH/USDT) >>> Profit and repeat...
This all happens on spot markets.

kek you can do arbitrage on stuff besides spot markets

Bitcoin_Arena

copper member

Activity: 2114

Merit: 1814

฿itcoin for all, All for ฿itcoin.

You got it all wrong, bro... I suggest you read the article that OP just shared to get you started in understanding well what arbitrage trading is (https://medium.com/geekculture/automated-triangular-arbitrage-of-cryptos-in-4-steps-a678f7b01ce7)

Quote from: Oshosondy on July 05, 2022, 02:54:28 PM

I can not count arbitrage trading as spot trading, though if you have the knowledge of arbitrage trading, it means you have the knowledge of spot trading but they both differ.

If I may ask, which markets do you use to buy and sell assets when carrying out arbitrage trading?
Aren't they spot markets? Or you have other special types of markets in mind?

Quote

In spot trading, traders take advantage of buying at lower price of a coin like bitcoin, and they will sell at higher price to make profit.

Spot trading means you buy or sell the asset at a current market price and the delivery of the underlying asset is done almost instantly (on the spot)
To perform arbitrage trading, you use a spot market to execute the buy and sell orders.

Quote

In arbitrage trading, traders look for price of coins on different exchanges and move the coins from one exchange to another, converting it to stable coin or fiat to make profit.

Whether same exchange or different exchanges, they are still spot markets.

Also, there is what we call triangular arbitrage. This can be done in one exchange. For example, Buy BTC using USDT (BTC/USDT) >>> Buy ETH using BTC (ETH/BTC)>>> Sell ETH for USDT (ETH/USDT) >>> Profit and repeat...
This all happens on spot markets.

Oshosondy

legendary

Activity: 1624

Merit: 1200

Gamble responsibly

Quote from: Bitcoin_Arena on July 05, 2022, 02:45:07 PM

Quote from: Oshosondy on July 04, 2022, 05:03:38 PM

I do not know much about other type of trading than trading on centralized exchanges, not arbitrage trading but spot trading

Arbitrage trading is actually spot trading, but taking advantage of the asset value difference across different trading pairs or exchanges.

I can not count arbitrage trading as spot trading, though if you have the knowledge of arbitrage trading, it means you have the knowledge of spot trading but they both differ.

In spot trading, traders take advantage of buying at lower price of a coin like bitcoin and they will sell at higher price to make profit.

In arbitrage trading, traders look for price of coins on different exchanges and move the coins from one exchange to another, converting it to stable coin or fiat to make profit.

In spot trading, you do not necessarily need more than one exchange. But in arbitrage, you need more than one exchange, if not more than one exchange is used, then it is not arbitrage.

Arbitrage trading are completely different. I know about it, the reason I still have to exclude it is because I am not using it to make profit, I do not do arbitrage trading, but I know about it. The other types I mean I do not know about are the pool or something and trading on decentralized exchanges to make profit.

Bitcoin_Arena

copper member

Activity: 2114

Merit: 1814

฿itcoin for all, All for ฿itcoin.

Quote from: Oshosondy on July 04, 2022, 05:03:38 PM

I do not know much about other type of trading than trading on centralized exchanges, not arbitrage trading but spot trading

Arbitrage trading is actually spot trading, but taking advantage of the asset value difference across different trading pairs or exchanges.

I haven't yet go enough time, but the articles might be having good content. Bookmarked!

JVSGL

newbie

Activity: 3

Merit: 0

Quote from: Oshosondy on July 04, 2022, 05:03:38 PM

I do not know much about other type of trading than trading on centralized exchanges, not arbitrage trading but spot trading and trading derivatives like USD-M perpetual for BTC. All I have known about trading is that it is very risky, it may not be gambling, but if i should be sincere, I consider it as gambling, especially for the newbies. Regardless of the the type of trading you are into, always know that trading is risky, do not use more than the amount you can not afford to lose, beginners should even use less than the amount they can afford to lose.

Please read the articles first. they are clear about risk & you are clearly talking about gambling.
Wintermute is simply talking about how mm's handle pump and dumps

Musca Capital is talking about how they profit from funding rates with 0 delta (no market exposure and risk is well defined and how they handle it)

tri arb, literally arbitrage no market exposure

Oshosondy

legendary

Activity: 1624

Merit: 1200

Gamble responsibly

I do not know much about other type of trading than trading on centralized exchanges, not arbitrage trading but spot trading and trading derivatives like USD-M perpetual for BTC. All I have known about trading is that it is very risky, it may not be gambling, but if i should be sincere, I consider it as gambling, especially for the newbies. Regardless of the the type of trading you are into, always know that trading is risky, do not use more than the amount you can not afford to lose, beginners should even use less than the amount they can afford to lose.

JVSGL

newbie

Activity: 3

Merit: 0

Some of the best trading Articles I found recently that I hope others have some use too

Wintermute : The good the bad and ugly of market making

Musca Capital: Profiting from inefficiencies in the crypto markets

oribtmarkets : Protecting Your Assets in AMM Pools
Triangular arbitrage introduction (a bit of a clickbait)

Topic: Algoritmic trading strategies & articles (Read 115 times)