Create a "Triangular Arbitrage" Crypto Bot With Coygo
Hello crypto traders! Today we’re going to create a triangular arbitrage crypto trading bot with Coygo Bots that can monitor six different order paths for arbitrage opportunities on a single exchange and respond within milliseconds.
(P.S. Need a reminder on how triangular arbitrage works? See our other post: Cryptocurrency Triangular Arbitrage: How Does It Work?)
What is Coygo Bots?
Coygo Bots is a platform for creating and running crypto trading bots that help automate your crypto day trading. These trading bots can trade on your behalf using a number of different highly-configurable pre-built strategies including triangular arbitrage, swing trading, grid trading & more.
Unlike most other crypto trading bot platforms, Coygo Bots are run on your machine and not in the cloud on Coygo’s servers. This allows Coygo to offer a unique type of security — your exchange account credentials (API keys) are only stored encrypted on your machine. Coygo’s servers never have access to your accounts. This also allows Coygo Bots to execute on second or even millisecond intervals, making it perfect for arbitrage or other real-time trading strategies.
What is triangular arbitrage?
Today we’re discussing the “Triangular arbitrage: 1 exchange, 6 paths” strategy within Coygo Bots. The source code for this trading bot strategy is open source and available to be viewed or modified so that you have full insight into what your bot is doing. (That means you can even change the code to fit your personal needs using using Coygo Forge!)
Triangular arbitrage is a trading strategy that aims to exploit price differences between different assets for a profit through a triangle of three trades. For example, you may start with USD and buy BTC, then buy LTC with BTC, then sell LTC for USD. If the rates have changed to create a profitable cross rate you can use that to your advantage.
If you want a full deep dive into triangular arbitrage, please see our other post: Cryptocurrency Triangular Arbitrage: How Does It Work?.
How to create a triangular arbitrage crypto trading bot with Coygo Bots
1. Sign in to Coygo Terminal
The Coygo Bots platform is available within Coygo Terminal, a downloadable desktop application for macOS, Windows and Linux. First you will need to sign in to Coygo Terminal. If you don’t have an account, you can start a free trial today! Learn more on our pricing page.
2. Go to “My Strategies” to select the triangular arbitrage strategy
Within Coygo Bots you can use the “My Strategies” page to see a list of every trading bot strategy that you can use. Here you will find “Triangular arbitrage: 1 exchange, 6 paths”. You can click the “+ Create Bot” button on this strategy to create a new trading bot!
Selecting the triangular arbitrage strategy
3. Configure your trading bot
Now that you’ve created your trading bot you will need to configure it to your specific preferences. It’s up to you to decide which exchange, trade pairs, and other values to use. Each configuration option has a descriptive label to explain how it will be used by the bot. Please see the video at the top of this post if you want a walk-through of each configuration property.
Keep in mind that arbitrage opportunities may only exist for a second or less, so a shorter execution interval will give you more chances to find those opportunities. We recommend an execution interval of 1 second or less.
Don’t worry — you can run your trading bots in Test Mode to try different configurations without using real money or submitting real orders.
Configuring your crypto triangular arbitrage bot
4. Run your new trading bot!
Now that you’ve created and configured your trading bot it’s time to try running it on the “Run” screen for this Bot. You can choose how long you want it to run (or indefinitely if you so choose), and you can enable Test Mode if you want the bot to simulate trades. If using Test Mode you can specify any fake wallet balances you want the Bot to use.
Run a trading bot
5. Monitor your trading bot
While your trading bot is running it will keep you informed with real-time data about the bot’s decision making and orders submitted.
One particularly helpful tool is the Activity Log on the left in which you will see a descriptive explanation of what the bot is doing and any decisions it’s making during each interval of execution. The Activity Log will default to showing the latest data but you can always go back in time and view previous intervals to get an understanding of exactly what your trading bot is doing over time.
Monitor a running trading bot
6. Stop your trading bot
When you started to run your trading bot you chose a maximum run time, perhaps 4 or 8 hours. When this amount of time has completed the bot will stop itself. You can also click the “Stop This Bot” button at any time while the bot is running to immediately stop it as well.
Try Coygo for free today
If you’re interested in Coygo Bots you can start a free trial today. We would love to hear your feedback! We want to make sure we’re providing the best possible solution for you.
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