I recently found out about this form of trading, but never tried it. Can anyone with experience give me some hints? I mean is this algorithm they use successful? And is it true about having big gains?
Arbitrage trading is not the same as the new traders read the success stories on the medium pages. The hidden face of the arbitrage can hurt the inexperienced trader due to the requirements by the exchanges. The hidden orders and liquidity problems can decrease the calculated profitability after a few attempts. The profitability of the arbitrage orders has to be higher than the calculated value, otherwise, the trading bots will suck the small percentages less than 2% from my own arbitrage experience.
You can calculate the profitability of the token listed on both IDEX and Kucoin. After checking the order sizes on both exchanges, buying from the low price exchange and sending the bought tokens to the Kucoin has to be done ASAP. The risk of losing arbitrage attempt depends on the speed of the blockchain(ERC-20 token confirmation time is around 10 min for 50 confirmation).