Arbitrage bot

Reliable strategy designed for hedge funds

Trade and profit from a differences in cryptocurrency prices across markets

BENEFITS TO EXPECT FROM OUR ARBITRAGE

MAKE THE MOST FROM THE MARKET
Ability to take advantage from unstable and volatile Crypto markets
INVEST RISK-FREE
Arbitrage is basically a risk-free trading strategy that allows traders to make a profit with no open currency exposure. Our system makes sure that it detects price discrepancies only and takes advantage of the minimal amount of time to make profit
CONNECTIVITY
Already integerated to biggest Crypto exchanges such as Coinbase Pro, Binance, HitBTC, BitMEX, CoinDeal, BitBay and many more to come. If you prefer other exchanges for your operations don’t hesitate to contact us.

FULL OPERATIONAL CONTROL
During the simulation process before execution, the strategy makes sure that all limits set by the trader are fully checked
CUSTOMIZE YOUR STRATEGY
It’s prudent to avoid black-box Triangular Arbitrage bots that you can’t control or extend with proprietary logic. You can jump-start with our pre-build trading bot and then extend it either with the help of our quant team or with your own developers. The intellectual property stays with you.
PROVEN ON TRADITIONAL & CRYPTO MARKETS
To set up your Triangular Arbitrage operations it is key to go with a proven partner. Empirica supports Hedge Funds since 2011 combining experience from capital, derivatives, forex and cryptocurrency markets.

WHAT OTHER BENEFITS TO EXPECT

DEDICATED QUANT TEAM
Let our team of quant developers help you build your proprietary algorithms. They have vast experience in implementing market making bots and algorithms for investment banks, brokerage firms, crypto exchanges, and hedge funds. More on crypto trading algorithms development.
SET OF PRE-BUILT LIQUIDITY & EXECUTION ALGORITHMS
Make your operations more efficient with crypto trading bots for hedging, smart order routing, VWAP, TWAP, Sniper, arbitrage and various advanced order types.
ALGO ENGINE THAT ALLOWS YOU TO BUILD YOUR OWN ALGORITHMS
You can jump-start with our pre-built algorithms. Later you can extend these strategies either with the help of our quant team or with your own developers. The intellectual property stays with you.

Our Open strategy API allows you to design, code and run trading algorithms. More on our Algorithmic Trading Software

FULL TECHNOLOGY SET-UP
We set up the whole technology for you, install and configure the software in the cloud or on your premises, integrate with chosen exchanges and provide ongoing technical support.
HFT - a low latency execution
Triangular Arbitrage is a High Frequency Trading business. Running a crypto Arbitrage bot on low latency and high throughput system gives you the real edge on the market. Our infrastructure was built to satisfy the highest requirements of institutional traders on capital markets.

Watch this short video explaining Empiric’s trading bot development for crypto hedge funds

Connectivity to major and niche crypto exchanges

When using our system you are integrated with major cryptocurrency exchanges from day one. The list of connectors that are built, maintained and updated with every change in API is growing and includes exchanges like Coinbase Pro, Bitmex, Binance or Bitbay.

As a customer, you can influence our development team’s roadmap for the next connectors.You can also request building a connector to any other exchange, OTC broker or crypto liquidity provider. Currently our roadmap for next months includes digital asset exchanges like Kraken, Gemini, Bitstamp, Deribit or Bitfinex. More on our crypto software development

Cryptocurrency Arbitrage

Definition

Cryptocurrency arbitrage can be described as a set of trading operations that is performed simultaneously by buying and selling the same cryptocurrency amount from two different exchanges to gain a profit off the exchange rate difference. The transaction is carried out in a way that the cryptocurrency amount on both exchanges is equal to the amount before the transaction, while the equivalent amount in fiat is increased by the rate difference.

Description

Statistical Arbitrage (SA) is build to gain profit on simultaneously buying and selling two shares of two correlated instruments. It is recomended to find two securities that are in the same sector / industry, they should have similar market capitalization and average volume traded. SA Strategy calculates two following values, which are later used to generate proper trade signals:

Mean (M) ratio of the first $n$ periods prices of two assets
Standard deviation (SD) of ratio of the first $n$ periods prices of two assets

where $n$ is a Number of Periods.

Mean and standard deviation are defined as follows:

$\text{M} = \frac{\sum_{i = 1}^{n}{\frac{A_i}{B_i}}}{n}$

$\text{SD} = \sqrt{\frac{1}{n-1} \sum_{i = 1}^{n} (\frac{A_i}{B_i} - M)^2}$

where $A_i$ ( $B_i$ ) is a price of the first (second) asset at the moment $i$ .

SA strategy starts decision rule, if orders should be sent after receiving Number of Periods trades.

Market Data

Latest Tick

Parameters

PARAMETER NAME	DESCRIPTION	ESSENTIAL
Number of Periods	Number of last ‘last trades’ events taken into account in a computation of the mean and standard deviation	Yes

Conditions

Open position

Side Buy or Sell
Amount One asset per order
Price Last market price
Type Market

Consider an arbitrary moment $k \geq n$ , when strategy has no opened positions. If $\frac{A_k}{B_k} > M + 2 \times SD” /> then we sell asset A and buy B. Similarly when <img class=$ then we buy asset A and sell B.

Close position

Consider an arbitrary moment $l > k \geq n” />, when strategy has already some opened positions. If we buy one asset and sell the other at <img class=$ we should close these two positions when $\frac{A_l}{B_l} = M$ .

Termination

There is no strategy termination condition.

Time frame

This strategy is dedicated to run in a long period of time. The instruments are highly correlated, so it is not likely that the ratio of prices will differ from mean by two standard deviations.

Further information & source

Barry Johnson, Algorithmic Trading & DMA: An introduction to direct access trading strategies, 4Myeloma Press, 2010.

FAQ

What are the system requirements?

As algorithms are executed on the server-side, we will set a proper hosted server environment for you. You will control the algorithms with lightweight frontend application, that do not have any excessive system requirements.

Do I need to deposit funds?

No. You connect our platform to the trading accounts you already have on crypto exchanges. All your balances are always on the exchange side, so you have always full control of your funds, and you can ask for withdrawal on your exchange whenever you want.

It’s easy to use?

Yes. The usage and monitoring of bots are designed to be straightforward. Although the software architecture is incredibly powerful, the complicated stuff is under the hood.

What exchanges are already supported?

Empirica automates trading on major cryptocurrency exchanges such as:

Binance,
Coinbase,
Bitmex,
HitBTC,
Bitbay,
Coindeal,

and a few others are underway. If your exchange is not yet supported, please contact us.

What assets can be traded with Arbitrage bot?

Major cryptocurrencies like Bitcoin, Ethereum and Litecoin as well as other altcoins.

Are Empirica’s crypto trading bots released as open source?

Not to the general public. But if you decide to extend our algorithms with your own logic, you will get the source code with the licence to modify and use it.

Have you implemented other trading bots?

We have implemented following bots and algorithms:

Arbitrage bot

Reliable strategy designed for hedge funds

Trade and profit from a differences in cryptocurrency prices across markets

BENEFITS TO EXPECT FROM OUR ARBITRAGE

MAKE THE MOST FROM THE MARKET

INVEST RISK-FREE

CONNECTIVITY

FULL OPERATIONAL CONTROL

CUSTOMIZE YOUR STRATEGY

PROVEN ON TRADITIONAL & CRYPTO MARKETS

WHAT OTHER BENEFITS TO EXPECT

DEDICATED QUANT TEAM

SET OF PRE-BUILT LIQUIDITY & EXECUTION ALGORITHMS

ALGO ENGINE THAT ALLOWS YOU TO BUILD YOUR OWN ALGORITHMS

FULL TECHNOLOGY SET-UP

HFT - a low latency execution

Connectivity to major and niche crypto exchanges

Cryptocurrency Arbitrage

Market Data

Parameters

Conditions

Open position

Close position

Termination

Time frame

Further information & source

FAQ

What are the system requirements?

Do I need to deposit funds?

It’s easy to use?

What exchanges are already supported?

What assets can be traded with Arbitrage bot?

Are Empirica’s crypto trading bots released as open source?

Have you implemented other trading bots?

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Additional Information

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