How to use Spread Arbitrage Software
Spread Arbitrage is our new crypto trader tool. You can access it by clicking on “Tools” and then on “Spread arbitrage monitor.
Bear in mind that this tool is only available to those users who have a balance of at least 150 DHT. How to buy DHT read here If your balance falls under 150 DHT, you’ll not be able to use this, so it’s a good idea to be mindful of your balance.
The first tab that we see is Symbols management. We have two fields: “base symbols” and “quotes symbols”. “Base symbols” is for altcoins and even bitcoins and ethereum – these will be used relative to the quotes symbols below. So these will be used as pairs. For example, Ethereum and Bitcoin, or Ethereum and USD, or Ripple / Bitcoin, and so on. Essentially, these two fields generate the symbols that we’ll use for this tool.
Video – How to use FREE & Fully Automated Spread Arbitrage Software
We click on next and move on to the next tab, the exchange tab. This is where we add the exchanges that we’ll use. We need to click on Add. We can now select our first exchange. From the list of exchanges, we choose the one we want to add. Let’s go with this one. Hit Enter. The symbol format field is automatically filled with the symbol format used by this exchange.
The symbol mapping field is used in a situation where the exchange uses unconventional symbols. For example, if the exchange uses XBT instead of BTC for Bitcoin, you’d put it there. Finally, in the commission field you specify the commission used by the exchange. Keep in mind that the value is not expressed in percentage terms. So if the commission used by the exchange is 0.2%, you need to enter 0.0020 as it appears right here. If the commission is 0.25%, you’ll need to enter 0.0025. You do the same thing for every other exchange that you’d like to add. Let’s add a few more exchanges. Poloniex … Exmo … CEX.IO … Bitstamp … Bitfinex, and let’s go with Bittrex. I am just going with the more popular exchanges.
We now need to generate all the symbol pairs that are involved in our arbitrage so that they are mapped to the exchanges. If you look at the exchanges we’ve selected, you’ll see that there are currently no symbols mapped to these exchanges; they are empty. What you need to do is click on “Add all symbols” at the bottom, and all the relevant pairs will be automatically generated for the exchanges. So click “yes”. This process will take a few moments, so let’s just wait . . . We have a nice little message that says “done”. If we click on Exmo, we see there are a bunch of symbols here. Bittrex, same deal. Every exchange for arbitrage now has an automatically generated list of symbols, and they have been mapped.
We can now move on to our last tab, which is Spread Monitor. The Symbol field is empty right now. We need to click on “Run” right here, and we now have a list of symbols. When we choose a symbol from that list, we see the spreads available for the exchanges. Some exchanges support these currencies and some don’t, so this is reflected in the data that you see here. The table is always the same. Let’s use ETH/USD as our example and go over the information that appears here. At the top, you see the exchange. You can see the volume (that’s letter V) and you can see the last price immediately below. On the left, you see the exchange, the volume available for purchase and the purchase price. So you have the bids at the top and the ask (the offer) at the bottom on the left. You see both the available volume and the available price. Let’s say we want to add some kind of automatic rule for one of the exchanges. We first take a look at our balances under the “Balances” tab. We can see that right now have some USD with Exmo, but we don’t have any US dollars with CEX.IO; we only have Ethereum and Bitcoins with CEX.IO. That means we’ll have to open a buy order with Exmo and a sell order with CEX.IO. So Exmo will be our buy side and CEX.IO our sell side. We select to have a cross between the two exchanges.
Right-click and select “Create automatic rule”. We need to input a label. Let’s enter Test 1. We now have an automatically created rule. Let’s go over the definitions here. We have the Label. We have the buy exchange and the sell exchange. The symbol that we’ll trade. The lot size that we’ll trade. The open and close spreads. The other headings – that’s our statistics. The current open and close spreads, the minimum open and close spreads.
Let’s activate the spread by checking off “Enabled” box. We see that for this pair, the current open spread is 0.3% and the current close spread is 0.27%. If we want to at least break even on our arbitrage trades, we’ll need a difference of at least 1% between the open spread and the close spread, because we need to take into account the commission fees that we’ll pay both on the buy and on the sale. So in that case, we’ll need to set the open spread to -1 and the close spread to 0. That will ensure that we’ll break even on our arbitrage trades. If we change the close spread value to 0.5, all of our trades will earn 0.5% of the spread. So we’ve created an automatic rule, but we won’t wait for an arbitrage situation right now; the idea is to show you how this works, we don’t actually need to trade.
If we change the open spread to 1 and take a look at the logs, we’ll see that there was an arbitrage situation, but that the trades were rejected, because we haven’t specified a lot size. The lot is currently at 0, hence the rejections. There’s another one, as you can see. The program was designed in such a way that there is an interval of 30 seconds between unsuccessful trades. You can see that by looking at the times. 10:53 and 11:23. So always remember to pay attention to the lot field and make sure you have a value in there. Also, the lot size has to be supported by both exchanges. If we use a value of 0.05, which is supported by Exmo but not by CEX.IO, we’ll have an open order on EXMO, but nothing on CEX.IO. So we’ll have orders open on only one of the two sides. If you we look at the logs, we can confirm that. Two orders have been opened on EXMO, but there’s nothing for CEX.IO. There’s a pending order sitting under our Pending Deals tab. The Exmo balance has been updated, but the CEX.IO balance is unchanged. So be mindful of that and also remember to pay attention to your balances.
Let’s do a real trade. We’ll set the lot size to 1. I know that this lot size is supported on both exchanges. We’ll remove this order from our pending orders. For some reason, it’s gone into our closed orders. And the reason is that the close spread is at 0.5, so the orders were opened and closed immediately. Let’s change it to1. Actually, let’s make it 0. Because the current spreads were under 1%, our close spread of 1 opened and closed the orders right away, so we had to adjust it accordingly. Now we have an open order and it’s sitting there. Let’s look at the headings. We have the deal ID, that’s assigned by the program. We’ve got the pair label that’s involved. We have the exchanges, both the buy and the sell one; and we can see which exchange is on the buy and which on the sell side under “side”. We have the symbol, the lot size, the order IDs on the exchanges, the open price, the spread that was indicated and the actual spread at which the order was open.
At this point, we have two possibilities. We can wait for the arbitrage trade to be closed when the market changes. Or we can just close the order manually by clicking on the X right here. If we want to get rid of the statistics, we right-click and select “clear statistics”. The statistics is then cleared based on the minimum open and close spreads identified while the program was running. So if we click to clear it, it’ll clear and then repopulate the fields with the minimum spreads that it has found. You can click on “view log”, we’ve already seen it. This is where you can view the history of your activity. You can click to remove the pair, but it won’t work right now, because we have an open order. And we also have an option to switch sides, which will switch the buy exchange and the sell exchange. But again this won’t work if you have open orders, as we do right now. We can add additional pairs and enable them right away, because the spread values are -100, so it’s safe to do that. We can then monitor the situation and see what happens.
To avoid another order from being opened, we’ll set the open spread to -1, and try to close the order manually. As you can see, we’ll have a loss of about 0.5% for an Ethereum/USD lot of 0.1. The order has been successfully closed. All of our closed orders are located under the Closed Deals tab, and you can see the relevant information. The spreads, the profit, and so on. That’s how this tool works. We hope this is helpful.