How much profit should you earn at least to cover this problem fiat -> bittrex -> binance -> bittrex -> fiat 
‘Cause if you cannot do this then arbitrage is meaningless. I realize 2% is just an example, however, I suppose you should have tried to trade like this on your own. Have you got any history?
‘Cause if you cannot do this then arbitrage is meaningless. I realize 2% is just an example, however, I suppose you should have tried to trade like this on your own. Have you got any history?Hey! Thank you for the interest in the project!
There are more factors to take into consideration! However, for your question the most important are trading fees. All related costs are included in the algorithm, so trades are just executed when the algorithm gives a positive signal. In this case it depends on the absolute value in order to cover the fees. The trades are also saved in the history, which is used for big data analytics in order to improve the algorithm. This can be checked in the Dashboard (start for history: 05/06/2018). The life feed can be checked on the website. https://www.arbitao.com
I think Zast asks exactly for
Quote
the most important are transaction fees
I also wonder what instruments or what strategies do you have to guarantee that the profit exceed commission costs. Or you just cannot guarantee at all, what it reasonable by the way
Arbitao as a platform is developed in the way that only the best opportunities among thousands of pairs are chosen. This can be ensured because of the amount of capital on the exchanges. The system takes besides the transaction fees a lot of other factors into consideration in order to guarantee stable profits (96% of the trades are positive). The code is programmed in C++ and we have the servers in Data centers next to the locations of the exchanges. Therefore, it is possible to execute the trades extremely fast.
The fees (deposit, trading, withdrawal) and their structure are different from one exchange to another but are set and clear. Taking the fee amount into consideration, it’s relatively easy to calculate if a particular arbitrage transaction is going to be profitable or not. There’s no element of surprise. By allocating substantial funds to exchanges, we’re able to significantly lower the fees and the number of profitable transactions increases.
The real challenge is to successfully execute a potential trade in the needed time. This is where the risk comes into play. In order to carry out an effective arbitrage transaction, we must conduct two operations on two different exchanges and both must end successfully. If the outcome of either one is not favorable, the transaction is deemed unsuccessful and may end up as a loss.
The network architecture and the speed of application is crucial here, and this is why we have a distributed MultiDC infrastructure and we’re constantly working to improve the algorithm and speed of the application.
I hope this is answering your question.
