Quote from: Leinaded on September 16, 2015, 12:43:24 PM

Hi all,

I wanted to make an open question for those of you actively doing arbitrage. First of all for those of you that feel the "urge" to mention arbitrage has been discussed in many threads and "just do a search" I say that it's been discussed but never with the specificity I'm looking for so I'm opening this thread to make specific questions and try to understand the answers with an example that illustrate better what my doubts are.
I've been interested in getting into arbitrage but the subtleties and nuances can make the theory very different from practice and the estimated profits much less than calculated.
I would like to know with an specific example how would you calculate the profit (reward) versus the risk (initial investment, potential of missing the trade) after taken into account several things:

Spread and fees asked at both exchanges.(Including trades and transaction between them).
Cost of exchanging EUR to USD or any other currency since afaik all deposits must be done in USD. Does this step makes you incur in adittional fees and increased time to perform the trades and deposits you want to do?
Estimated time to do all the steps needed to do arbitrage reliably and do not miss too many opportunities so you can have an acceptable risk/reward ratio. (Risk of missing the trade versus potential profit).

As a help for me to understand how you estimate risk/reward let me introduce and example and if you want to help complete it with what you'd calculate to estimate time frame, risk, and net profit with all the spreads, fees, etc. deducted.
Let's pick BTC/EUR which has huge spreads between exchanges:

Cryptsy    261
   Buy offer 3.5 BTC
BTC-e     198.18
   Sell offer 4.25 BTC

Gross profit 62.82 per BTC. Gross risk up to 693.63 EUR, potential gross profit 219.87 EUR. 131.7% Gross ROI.

So what is the net profit, time estimates of all the required steps in this arbitrage trade and how many trades you achieve versus the ones you miss per 20 (pick any number) trades you begin? Any other thing I forgot to ask that you think is important will be welcome.

I'd appreciate any help you can provide, most of all if it is as specific as possible. Is not the same to say "yeah, it has been somewhat profitable for me but is has gotten harder" than answer with the detail I ask above.

The one below seems to be a good arbitrage margin, but it is not high as the one you mentioned.
This one is 4% and the one you mentioned is around ~25% so you can give it a try with that high number.

Quote from: xiaoxiaox on September 17, 2015, 10:42:25 AM

Until 30/09/2015 there will be 4% boost for all BITCOIN to USD trades.
Each trade is processed through Virtual World Services so it complies with paypal's policy.

The boost link is: https://www.bitcoinltd.net/index.php?bonuscode=4%

Contact for GBP or EUR request: support@bitcoinltd.net
Technical contact: admin@bitcoinltd.net

Current normal price (at 12:54 AM CET TIME):

Current boosted price (at 12:54 AM CET TIME):