Detecting correlations and triangular arbitrage ...

Making $2,000 a Month With Cryptocurrency - Triangular Arbitrage » NullTX

fintech #trading #algotrading #quantitative #quant #quants #forex #cryptos #bitcoin

Making $2,000 a Month With CryptocurrencyOn the road toward making $2,000 a month with cryptocurrency, one has to look well beyond traditional opportunities first and foremost. In the case of arbitrage trading, there are quite a few different options to explore. The triangular arbitrage opportunity can be extremely lucrative, although there are some caveats to take into account as well.The Triangular Concept Explained Unlike the direct arbitrage trading method, triangular arbitraging is a bit different. It will always involve exploring three different markets and up to three different exchanges. For example, one buys coin A on Exchange X, sends it to exchange Y for conversion to coin B, and sells that coin B on Exchange Z for even more profit. Both “steps” of the arbitrage process can yield individual gains which do not necessarily have to be equal in size. Is it Profitable? The main reason why speculators explore triangular opportunities is for the financial gain. Compared to dire.....
Continue reading at: https://nulltx.com/making-2000-a-month-with-cryptocurrency-triangular-arbitrage/
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Market Making Strategy

Market Making Strategy

https://preview.redd.it/u1jwr3pjndi31.png?width=1920&format=png&auto=webp&s=e51f144990f475c4435e249f10f5582eab3765c1
The needs of Market Making Strategies
According to a research in Nebraska, Over the past few years, the rapid growth and success of automated techniques for e-commerce have resulted in their wide adoption in various domains beyond traditional B2B and B2C commodity markets.
As the role of the market-makers grows, the need for better understanding of the impact of the market-makers in the market increases as well.
Finally, the reinforcement learning strategy fulfills its tasks of both controlling the spread and maximizing utility.
History of market making
The automation of a market-makers’s functions was suggested more than three decades ago. Previously, several theoretical approaches, albeit with certainsimplifying assumptions, have been proposed to understand the effects of market makers on financial markets.
Designing a strategy based on :
  • Traders behavior
  • market-makers behavior
As a result, the rolls of a market makers are :
  1. Sets bid and offer prices within a certain currency pair
  2. Commits to accepting deals at these prices within certain constraints
  3. Takes the resulting exposure on to their own book (at least initially)
  4. Hosting, deployment, and maintenance
  5. Integrations with portfolio and execution management systems
  6. Access to historical order book data
Above all, this white paper mentioned different strategies about market making :
  • Basic arbitrage strategies: singe trading pair on two exchanges
  • Multiple exchange strategy: increase likelihood of identifying arbitrage opportunities by monitoring multiple exchanges (more than two)
  • Multiple trading pair strategies / triangular arbitrage: a common strategyin foreign exchange markets, using more than a single trading pair for capturingarbitrage. Increased complexity and additional trading pairs increase the likelihoodof the occurrence of a pricing dislocation.
  • Cross-Exchange Market Making: Cross-exchange market making combines elements from both arbitrage trading and basicmarket making in order to profit from differences in liquidity between trading pairs fromtwo (or more) different exchanges. In cross-exchange market making, a market maker trades on or two different exchanges and uses the best available bid and asks.
  • Re balancing :When employing a cross-exchange market making strategy, it is increasingly likely withthe passage of time that an imbalance in the direction of trading flows will accumulate.
Conclusion
This is the first step in performing a comparison of multiple market-maker strategies. In the future, we wish to explore different extensions of this work. First of all, we would like to propose and perform comparisons of other market-maker strategies such as using a minimax regret algorithm for price adjustments by the market-maker. Secondly, we would like to study the performance of the market makers with a more complex behavior, such as dynamically switching strategies based on past performance. This way, a better balance of maintaining marketquality and maximizing market-maker utilities may be obtained. And lastly, we would like to add various behavioral attributes to the market-maker model such as different risk attributes and making untruthful price revelations through bluffing for improving profits.
http://blog.quantvan.com/?p=720
submitted by Quantvan to u/Quantvan [link] [comments]

Making $2,000 a Month With Cryptocurrency - Triangular Arbitrage - NullTX

fintech #trading #algotrading #quantitative #quant #quants #forex #cryptos #bitcoin

Making $2,000 a Month With Cryptocurrency - Triangular ArbitrageOn the road toward making $2,000 a month with cryptocurrency, one has to look well beyond traditional opportunities first and foremost. In the case of arbitrage trading, there are quite a few different options to explore. The triangular arbitrage opportunity can be extremely lucrative, although there are some caveats to take into account as well.The Triangular Concept ExplainedUnlike the direct arbitrage trading method, triangular arbitraging is a bit different. It will always involve exploring three different markets and up to three different exchanges. For example, one buys coin A on Exchange X, sends it to exchange Y for conversion to coin B, and sells that coin B on Exchange Z for even more profit. Both “steps” of the arbitrage process can yield individual gains which do not necessarily have to be equal in size. Is it Profitable?The main reason why speculators explore triangular opportunities is for the financial gain...... Continue reading at: https://nulltx.com/making-2000-a-month-with-cryptocurrency-triangular-arbitrage/
submitted by silahian to quant_hft [link] [comments]

ChainLink and The Oracle Problem

The ChainLink crowd sale sold out in 3 minutes and it's currently trading at approximately 3x ICO prices. The presale sold majority of the available link tokens, however, so the speed at which the crowd sale sold out can be discounted.
This project allows for oracles (trusted off-chain data providers) to supply inputs to the blockchain for smart contract transactions.
Imagine triangular arbitrage using forex currency fluctuations via smart contract. Possible with ChainLink Oracles.
Imagine smart contracts that integrate real time data sources from anywhere off the block chain (stock markets, real estate, banking, etc). All possible with ChainLink Oracles.
SIBOS (Swift's major financial conference) is coming in October and ChainLink is an invited presenter, having also presented (and won some kind of prize) last year.
ChainLink is extremely promising and is currently my 4th largest position behind BTC, ETH, and ARK. It is very much in infancy and has long-reaching implications for crypto's mass adoption into the financial services industry.
submitted by deanerific to CryptoCurrency [link] [comments]

Forex arbitrage question

Let's say there's a forex market trading 3 currencies, A,B and C. Now, in the AB and BC market, the bid/ask is .99 and 1.01, but the AC market is empty. It's possible as a market makearbitrageur to quote .97 and 1.03 on the AC market, because if somebody hits their order, they can use the other 2 markets to complete a triangular arbitrage.
Of course, there is some amount of risk involved because the liquidity in the other markets might disappear in between when they get hit and when they try to complete the triangle.
The arbitrageur's action can be characterized as providing a shortcut to trade AB-BC, for a fee; their counterparty could have done this themselves for lower cost.
Now, my question is, is it feasible for the exchange itself to automatically display these "synthetic" bids and asks on the order books, and complete the arbitrage itself as part of the matching engine?
It can quote better prices for a few reasons:
  1. It doesn't have to worry about turning a profit on the trade, since it's an action of the matching engine and not of a market participant.
  2. It doesn't have to pay transaction fees, for the same reason.
  3. More importantly, it's also riskless, because, as it is part of the matching system, the correct trades happen instantaneously, rather than by the arbitrageur's round trip latency.
Does anyone know if any forex markets do this in real life? Are there any reasons against it?
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Level II CFA: Triangular Arbitrage Demystified - YouTube TRIANGULAR ARBITRAGE SCANNER Triangular Arbitrage Step-by-Step - YouTube Forex Triangular Arbitgage System The Ultimate Guide To Triangular Arbitrage in the Forex ... International finance - Triangular arbitrage (part 1) Triangular Arbitrage with Bid - Ask Quotes - YouTube Triangular Arbitrage

Trading forex arbitrage is not recommended as a sole trading strategy in forex. It is also not advised for traders who have small equity accounts, because trading arbitrage requires a large amount of capital. Steps. Part 1 of 3: Understanding Arbitrage and The Forex Market. 1. Understand the foreign exchange market. The foreign exchange market, commonly referred to as forex, is an ... Triangular Forex arbitrage. Since arbitrage is a fairly low-risk strategy, arbitrage opportunities don’t last long on the market. The buying pressure on the lower-priced asset and the selling pressure on the higher-priced asset on different exchanges causes the prices to converge eventually. The advancement in technology and software helped large investors to continuously search for price ... Arbitrage EA is the best if you are looking for an Expert Advisor with low drawdown. This EA opens trades in three different pairs simultaneously and leave the trades open until the profit is reached. Triangular arbitrage in the Forex market. Let us first consider a model situation where we can instantly carry out a sequence of transactions with exchange rates, which all of them are known for a given time instance t. In our example, a subset of all exchange rates for 3 currencies (EUR, USD, CHF), namely 3 quotes EUR/CHF, EUR/USD, USD/CHF , is considered. Let us assume that a trader holds ... Triangular Arbitrage in Forex Market What is Arbitrage? In the world of finance, arbitrage is the practice of taking advantage of a state of imbalance between two or more markets. A person who engages in arbitrage is called an arbitrageur. The arbitrageur exploits the imbalance that is present in the market by making a couple of matching deals in different markets, with the profit being the ... Triangular arbitrage benefits in the Forex market are uncommon and may require steady observing utilizing a computerized program or programming. The triangular arbitrage trading method isn’t completely riskless and faces different risks, including execution risks. Where the broker may postpone or not fill at least one legs of the arbitrage, in the Forex market, these types of postponements ... Types of Forex Arbitrage. Forex arbitrage can be undertaken as follows. One trader wants to sell a currency at a lower price than another trader who wishes to buy the same currency. Here, profit can be generated by buying the currency from a seller at a lower price and selling it to the buyer at a higher price. However, there is always a risk of the currency price changing or getting a re ...

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Level II CFA: Triangular Arbitrage Demystified - YouTube

CLICK HERE FOR MORE INFO: https://rebrand.ly/forex33 And start earning in the Forex Market Now! In our expanding multinational company setting, there are com... Step-by-step understanding of the triangular arbitrage concept in currency markets Triangular Arbitrage (Forex) CFA L2 , CMA, CA Final - SFM (Strategic Financial Management) - Duration: 10:45. CA Nikhil Jobanputra 6,571 views. 10:45. 2020 FINANCIAL CRISIS Has it started? The ... triangular arbitrage scanner ea. keeps orders hedged and looks for profitable arbitrage trades For more videos, notes, practice questions, mock exams and more visit: http://www.ift.world/inbound-signup Facebook: facebook.com/Pass.with.IFT A demonstration on conducting Triangular Arbitrage using the Bid - Ask FOREX quotes Live Trading 24/h Triangular Arbitrage / Harmonic Hedge / Grid Guard - System. Triangular arbitrage involves buying and selling the same pair simultaneously. The named pair and the same synthetic currency pair show different prices. The named pair and the same synthetic ...

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