Disclaimer. We do not offer arbitrage bots or any other trading software. We have done it for years and have seen that we could better serve our customers by offering them full service, not only a tool. Empirica is now fully focused on providing liquidity for projects as a crypto market maker. If you need help in that area, let us know!
Watch this short video explaining Empiric’s trading bot development for crypto hedge funds
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 to build a connector to any other exchange, OTC broker, or crypto liquidity provider. Currently, our roadmap for the next months includes digital asset exchanges like Kraken, Gemini, Bitstamp, Deribit, or Bitfinex. More on our crypto software development
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:
periods prices of two assets periods prices of two assetswhere is a Number of Periods.
Mean and standard deviation are defined as follows:
where 
(
) is a price of the first (second) asset at the moment 
.
SA strategy starts decision rule, if orders should be sent after receiving Number of Periods trades.
| 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 |
Consider an arbitrary moment 
, when strategy has no opened positions. If 
then we buy asset A and sell B.
Consider an arbitrary moment 
we should close these two positions when 
.
There is no strategy termination condition.
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.
As algorithms are executed on the server side, we will set up a proper hosted server environment for you. You will control the algorithms with lightweight frontend applications, that do not have any excessive system requirements.
No. You connect our platform to your trading accounts on crypto exchanges. All your balances are always on the exchange side, so you always have full control of your funds, and you can ask for a withdrawal on your exchange whenever you want.
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.
Empirica automates trading on major cryptocurrency exchanges such as:
and a few others are underway. If your exchange is not yet supported, don’t hesitate to get in touch with us.
Major cryptocurrencies like Bitcoin, Ethereum, and Litecoin, as well as other altcoins.
Not to the general public. But if you decide to extend our algorithms with your logic, you will get the source code with the license to modify and use it.
