The world's number one digital currency futures platform: BitMEX
The Bitcoin Arbitrage is called brick moving in China, because it likes a worker moving brick from low location to high location.
As for Bitcoin Arbitrage algorithmic trading, there are two main types of brick moving strategies:
First, hard moving brick strategy
The hard-moving bricks are bought from the A-exchange, and the coins are sold to the B-exchange. Then, the B-recounting currency is recharged to A, and the bricks are reciprocated. The hard-moving bricks are more popular before 2014. The restrictions are too large and funds cannot form a continuous flow.
Second, soft moving brick strategy
Soft moving bricks are half of the money and half of the currency, or two exchanges A and B, for example, put half of the money and half of the coins in the AB exchange, when the price of the A exchange is low, buy the currency, and at the B exchange. Selling the currency, the difference is the profit, and vice versa. In the era when the current digital currency quantification robot is prevalent, the soft moving brick has become the dominant market, and the spread is also shrinking.
In addition, soft moving bricks also have a statistical arbitrage strategy. The statistical arbitrage strategy generally counts the difference between a certain period of time. When the difference between the two exchanges deviates from the normal value, the reverse operation is performed until the difference returns to the position, and there is currently one on the market. Most of them are based on statistical arbitrage.
The brick-moving strategy is a kind of arbitrage strategy, so the retracement is extremely small. However, due to the low threshold of the brick-moving strategy, many brick-moving robots have staged a big game, and the current profit margin is very low.