Aido,
Could you explain a bit more how your arbitrage algorithm work ?
From what I understand from simulation, you compare changing real currency 1 to real currency 2 through bitcoin and through regular trading ?
So we don't actually make money with this right ? How do we benefit from this.
Example if my local currency is USD, if at t=1 I have an arbitrage with Euro
I trade through bitcoin and get euro. But then if I don't have reverse arbitrage to get back to USD for a while, depending on trends of USD/EURO I may loose money.
Am I wrong ? or did I miss something ?
thanks for your help
The points you make seem to be correct. I see another problem with arbitrage in that the currencies do not have to actually be at their correct value unless you took them to a different place to trade them back. It was said in the other thread that a wrong assumption was made and arbitrage could lose money. Likely the arbitrage engine isn't a good idea to use.