Re: [ANN][PRE-ICO] ARBITAO: The New Way of Arbitrage Trading
Hi, can you explain a little how the trading process go? you buy a certain pair from one exchange, and then sell on another? but how does the algorithm take into account the transaction time from one exchange to another for example, especially in cases where the margin is too small, that it might turn into a negative trade while waiting for the transaction from 1 exchange to another.
The simplest type of an arbitrage transaction is when you buy a certain pair from one exchange and instantaneously sell on another exchange (you need on both exchanges funds). By instantaneously, we mean that there's no transfer of coins (as theres no need for it) between exchanges to fulfill a particular arbitrage transaction. The goal is to have enough deposited funds on each exchanger to fulfill a lot of such transactions without the need to transfer the funds in order to complete those transactions.
The time is of the essence here, so the real challenge we address is to make a quick decision and perform two operation simultaneously. Please see post #21 in this thread.
Also, just to confirm, the investor allocates a certain amount of ATAO and then receives profits also in ATAO, and then can exchange ATAO for BTC on TaoX exchange, correct?
You are correct. Please note, that there's USD equivalent in between, added as a security layer for both parties as cryptocurrency market is quite volatile and through this system Arbitao is able to guarantee stable profits to the customer and does not have to take over the volatility risk.
Arbitao will use approximately 80% of the funds for the 10 biggest exchanges and 20% of the funds for the rest. Exactly, the buy-sell will occur on every exchange independently. And from time to time the algorithm is rebalancing the funds of the exchanges. Therefore, we just have to cover the trading fee for the arbitrage trades and for rebalancing the withdrawal/deposit fee. But the rebalancing is not occurring as often as the trades. This means that we are cutting fees as much as possible.
This allocation is reasonable. I would like to try this strategy by myself, but it needs much more investing than ordinary trading. Thats why I liked your platform and probably going to participate.
However, I wonder if it would be possible to estimate my profit. Would be also nice if you had smth like a calculator that could help to predict it approximately
