Takashi Triangular Arbitrage | 2nd Gen | [Alerts]

17 Nis 2020

Spot discrepancies between three currencies: these opportunities are rare and usually benefit to traders using advanced programs. You can now set up alerts and discover those for yourself.

This indicator signals opportunities for executing triangular arbitrage. Triangular arbitrage is the result of a discrepancy between three different currencies that occurs when the currency's exchange rates do not exactly match up. These opportunities are more frequent at cryptocurrency markets. The trader would exchange an amount at one rate (Currency_B/Currency_A), convert it again (Currency_C/Currency_B) and then convert it finally back to the original (Currency_C/Currency_A), and assuming low transaction costs, net a profit.

Example:
As per standard inputs, the trader would use US dollars to buy BTC (BITFINEX:BTCUSD), use BTC to buy NEO (BITFINEX:NEOBTC), use NEO to buy US dollars back (BITFINEX:NEOUSD). Whenever the quantity of US dollars bought back is higher than 1% from the initial amount, the indicator will send an alert signaling an arbitrage possibility.

Disclaimer: triangular arbitrage requires advanced automation tools and is only possible if there is enough liquidity to quickly execute all 3 trades at prices used on the indicator.

Inputs
Symbol 1
Symbol input. First step currency to initiate triangular arbitrage. (Currency_B/Currency_A)

Symbol 2
Symbol input. Second step currency to continue triangular arbitrage. (Currency_C/Currency_B)

Symbol 3
Symbol input. Final step currency to finalize triangular arbitrage. (Currency_C/Currency_A)

Discrepancy %
Float input. Amount in percent of profit return after triangular arbitrage is finished. Transaction fees not included.

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