Xiaoyi Quantitative Super Arbitrage Nanny Level Tutorial V1.7

一、引言
(1) Definition of Cryptocurrency Risk-Free ArbitrageCryptocurrency risk-free arbitrage is an investment strategy designed to take advantage of price differences and funding fees in the cryptocurrency market to achieve low- or risk-free returns. This strategy involves finding and exploiting price differences between different markets, exchanges, or trading pairs, while simultaneously buying and selling the same or equal value assets to reduce risk and obtain stable returns. In perpetual contract trading, the funding fee is a fee that balances the power of long and short positions, helping to keep the perpetual contract price close to the spot market price. By observing changes in funding rates, investors can determine the balance of market forces and discover arbitrage opportunities accordingly.
The core principle of risk-free arbitrage is to take advantage of market imperfections and information asymmetry to achieve stable returns through risk hedging. Given the relative immaturity and high volatility of the cryptocurrency market, opportunities for risk-free arbitrage are relatively abundant. Therefore, investors can implement risk-free arbitrage between different markets or exchanges to achieve stable returns.
(2) The significance of risk-free arbitrage of cryptocurrencyCryptocurrency risk-free arbitrage has the following implications:
1. Reduce risk
Through hedging strategies, investors can reduce the risks caused by market fluctuations and achieve stable investment returns. Risk-free arbitrage strategies reduce the loss of asset value due to market fluctuations by finding and exploiting price differences between different markets or exchanges.
2. Stable income
The cryptocurrency market is highly volatile, and the risk-free arbitrage strategy has more stable returns than other investment strategies, allowing investors to gain returns while bearing lower risks.
3. Improve market efficiency
Risk-free arbitrage strategies help reduce price differences between different markets, exchanges or trading pairs and improve the efficiency of market price discovery. By looking for arbitrage opportunities, investors are actually eliminating information asymmetries in the market and contributing to the healthy development of the cryptocurrency market.
4. Take advantage of market imperfections
The cryptocurrency market is relatively young, and market imperfections are obvious. Through risk-free arbitrage strategies, investors can take advantage of these imperfections to gain income, while also helping to promote the gradual improvement of the market.
5. Increase market liquidity
Risk-free arbitrage strategies will increase market trading activity and improve market liquidity. Liquidity is critical to the health of cryptocurrency markets, helping to reduce transaction costs and increase market participant confidence.
Cryptocurrency risk-free arbitrage is of great significance in reducing risks, achieving stable returns, and improving market efficiency and liquidity. For investors, mastering and applying risk-free arbitrage strategies is an effective investment method that helps achieve long-term stable returns in the cryptocurrency market.
 
2. Basic concepts
(1) Basic concepts of capital feesFunding fees are an important concept in the cryptocurrency perpetual contract market. It is a fee incurred based on the difference between a contract holder's position and the market price within a specific time interval. The main function of the funding fee is to balance the power of longs and shorts in the market through economic incentives, so that the price of the perpetual contract is closer to the spot market price.
In perpetual contract trading, when the bulls are dominant in the market, the funding rate will be positive, and long position holders need to pay funding fees to short positions; conversely, when the shorts are dominant in the market, the funding rate will be positive. If it is a negative value, short position holders need to pay funding fees to long position holders. In this way, the funding fee mechanism realizes the adjustment of market prices, making the price of the perpetual contract tend to the spot price.
Funding fees are an important factor in cryptocurrency risk-free arbitrage strategies. Investors can look for and take advantage of arbitrage opportunities by observing changes in funding rates and judging the balance of power between longs and shorts in the market.
(2) Basic concepts of perpetual contractsPerpetual contracts are a special type of cryptocurrency derivatives that allow investors to trade with leverage in the cryptocurrency market. Perpetual contracts are similar to futures contracts, but the main difference is that perpetual contracts do not have a fixed expiration or delivery date. This means investors can hold these contracts indefinitely until they choose to close their positions. The following are the basic concepts of perpetual contracts:
1. No expiry date
Perpetual contracts have no fixed expiry or delivery date, so investors can buy or sell these contracts at any time without worrying about contract expiration.
2. Leverage trading
Perpetual contracts allow investors to use leverage, meaning they only have to pay a portion of the contract value as margin to gain greater market exposure. Leverage times vary according to different exchanges and trading products, and generally range from 2 times to 100 times.
3. Funding fee
In order to ensure that the price of the perpetual contract is consistent with the spot market price, the exchange has introduced a funding fee system. Funding fees are fees that are exchanged between longs and shorts to adjust the balance of market power so that the perpetual contract price is closer to the spot market price. Funding fees are collected and paid generally every 8 hours.
4. Hedging and Speculation
Perpetual contracts can be used to hedge the risk of existing cryptocurrency positions, or they can be used to speculate on market price movements. Investors can achieve hedging and speculation purposes by going long or short on perpetual contracts.
5. Price target
The price of a perpetual contract is usually linked to the market price of a certain cryptocurrency (such as Bitcoin, Ethereum, etc.) relative to a fiat currency (such as the U.S. dollar, Euro, etc.).
6. Margin and Liquidation
In perpetual contract trading, investors need to deposit a certain amount of margin to maintain their positions. If market price fluctuations result in insufficient margin, investors' positions may be forced to be liquidated to prevent further losses.
Perpetual contracts are a tool for leveraged trading in the cryptocurrency market. They have features such as no expiration date, funding fee system and margin trading. Investors can use perpetual contracts for hedging and speculation, but they need to be aware of the risks brought by leveraged trading.
(3) Basic concepts of delivery contractsA delivery contract (also known as a futures contract) is a cryptocurrency derivative that allows investors to buy or sell a cryptocurrency at an agreed-upon price on a specific date in the future. Unlike perpetual contracts, delivery contracts have fixed expiration and delivery dates. The following are the basic concepts of delivery contracts:
1. Maturity date and delivery date
The delivery contract expires on a specific date in the future, and the contract will be delivered at the agreed price when it expires. Delivery dates can be weekly, monthly or quarterly, etc., depending on the exchange and contract type.
2. Leverage trading
Similar to perpetual contracts, delivery contracts also allow investors to trade with leverage. This means that investors only need to pay a portion of the contract value as margin to gain greater market exposure. Leverage multiples may vary by exchange and trading instrument.
3. Hedging and Speculation
Delivery contracts can be used to hedge the risk of existing cryptocurrency positions or to speculate on market price movements. Investors can achieve hedging and speculation purposes by going long or short on delivery contracts.
4. Price target
The price of a delivery contract is typically tied to the market price of a certain cryptocurrency (such as Bitcoin, Ethereum, etc.) relative to a fiat currency (such as the U.S. dollar, euro, etc.).
5. Margin and liquidation
In delivery contract trading, investors need to deposit a certain amount of margin to maintain their positions. If market price fluctuations result in insufficient margin, investors' positions may be forced to be liquidated to prevent further losses.
6. Delivery method
Depending on the exchange and contract type, delivery contracts can be cash-delivered or physically-delivered. Cash delivery means that when the contract expires, investors receive or pay cash based on the difference between the contract price and the market price. Physical delivery means that when the contract expires, investors need to deliver or receive the corresponding cryptocurrency at the agreed price.
A delivery contract is an instrument for leveraged trading in the cryptocurrency market, with a fixed expiration and delivery date. Investors can use delivery contracts for hedging and speculation, but they need to pay attention to the risks brought by leveraged trading.
(4) Basic concepts of spot goodsSpot refers to instant trading in the cryptocurrency market, where investors can immediately buy or sell cryptocurrency at the current market price. Spot trading is the foundation of the cryptocurrency market, and its price often serves as the benchmark for derivatives such as futures contracts and perpetual contracts. Here are the basic concepts of cryptocurrency spot:
1. Instant transactions
Spot trading is an instant buy and sell transaction on the cryptocurrency market. Investors can instantly buy or sell a cryptocurrency based on the current market price.
2. Trading pairs
Spot trading usually involves the exchange of two currencies, called a trading pair. Trading pairs include base currencies (such as Bitcoin, Ethereum, etc.) and denomination currencies (such as USD, Euro, or other cryptocurrencies).
3. Price fluctuations
Prices in the spot market fluctuate greatly. This is because the cryptocurrency market is not yet mature and is affected by a variety of factors, such as market demand, policies and regulations, and technological innovation.
4. No leverage trading
Unlike derivatives trading such as futures contracts and perpetual contracts, spot trading typically does not involve leverage. Investors need to use their own funds to trade and cannot borrow funds from exchanges or other users.
5. Transaction fees
In spot trading, investors need to pay transaction fees, including placing order fees and taker order fees. Transaction fees are usually charged as a percentage of the transaction volume, depending on the exchange and the user's trading volume.
6. Exchange
Spot trading is usually conducted on cryptocurrency exchanges, such as Binance, EuroEasy, GATE, etc. The exchange provides a platform for investors to conduct buying and selling transactions and is responsible for maintaining the security and stability of the exchange.
Cryptocurrency spot refers to the instantaneous buy and sell transactions that take place on the cryptocurrency market. Spot trading is the foundation of the cryptocurrency market, and its prices often serve as the benchmark for derivatives. Spot trading does not involve leverage, and investors need to use their own funds to trade.
(5) Basic concepts of full position leverageCross Margin is a cryptocurrency leverage trading strategy that allows investors to use all available funds in their account as margin to increase their market exposure. Cross margin is opposite to isolated margin, which requires separate margin allocation for each position. The following is the basic concept of cross position leverage:
1. Leverage
Cross-margin leverage allows investors to participate in larger transactions with less capital, thereby increasing the potential for return and risk. Leverage multiples may vary by exchange and trading instrument.
2. Margin sharing
In the cross-margin strategy, all positions of an investor share the same margin. This means that if a position loses money, profits from other positions can be used to cover losses, thereby reducing the risk of forced liquidation.
3. Risk management
Although the cross-margin strategy can increase market exposure, it also increases risk. Therefore, investors need to carefully manage risks and ensure that the loss of a single position does not lead to a loss of the entire account through methods such as stop loss setting and position adjustment.
4. Liquidation risk
When market price fluctuations result in insufficient margin, investors' positions may be forced to be liquidated. Under the cross margin strategy, when the losses of all positions in the account exceed the available margin, all positions may be forced to be liquidated.
5. Applicable scenarios
The cross-position leverage strategy is suitable for investors who hedge multiple trading varieties, because these investors can use the complementary profits and losses between different positions to reduce overall risk. However, for investors in a single trading category, cross-position leverage may increase the risk of loss.
Cross Margin is a cryptocurrency leverage trading strategy that allows investors to use all available funds in their account as margin. Although cross-position leverage can increase market exposure, it also increases risks, so investors need to manage risks carefully. The cross-position leverage strategy is suitable for investors who hedge multiple trading varieties.
(6) Basic concepts of isolated marginIsolated Margin is a cryptocurrency leverage trading strategy that requires investors to allocate margin to each independent position. Isolated margin is the opposite of cross margin, which allows investors to use all available funds in their account as margin. The following is the basic concept of isolated margin:
1. Independent margin
In an isolated margin strategy, each position has a separate margin and is independent of other positions. This means that losses in one position will not affect other positions, reducing the risk of a single position.
2. Leverage multiple
Isolated margin allows investors to participate in larger transactions with less capital. Leverage multiples may vary from exchange to exchange and trading instrument, and can usually be selected based on the investor's risk tolerance and trading strategy.
3. Risk management
The isolated position leverage strategy helps investors better manage the risk of a single position. By allocating independent margin to each position, investors can ensure that losses in a single position will not affect other positions. However, investors still need to set stop losses and monitor positions to prevent unexpected market fluctuations from causing losses.
4. Liquidation risk
When market price fluctuations result in insufficient margin, investors' positions may be forced to be liquidated. Under the isolated margin strategy, since the margin of each position is independent of each other, only the insufficient position will be forcibly closed, while other positions will not be affected.
5. Applicable scenarios
The isolated position leverage strategy is suitable for investors who invest in a single trading variety, because it can help investors better manage the risk of a single position. For investors who are hedging multiple trading varieties, the full position leverage strategy may be more suitable.
Isolated margin is a cryptocurrency leverage trading strategy that requires investors to allocate margin to each individual position. Isolated position leverage helps investors better manage the risk of a single position and is suitable for investors who invest in a single trading variety.
(7) Basic concepts of mortgage lendingCryptocurrency spot mortgage lending is a financial service based on blockchain technology that allows users to obtain loans by mortgaging cryptocurrency assets. This service is implemented on both decentralized finance (DeFi) and centralized finance (CeFi) platforms. Here are the basic concepts of cryptocurrency spot-collateralized lending:
1. Collateral
In cryptocurrency spot mortgage lending, users need to put their cryptocurrency holdings as collateral to obtain a loan. Common collateral includes Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies.
2. Loan currency
Users can choose the currency type of the loan according to their needs, such as USD, Bitcoin or other cryptocurrencies. Typically, these loans are issued in the form of stable currencies (such as USDT, USDC) to reduce the risk of exchange rate fluctuations.
3. Mortgage rate
The mortgage ratio is the ratio of the loan amount to the value of the collateral, usually expressed as a percentage. The lower the mortgage rate, the more sufficient assets the user has mortgaged and the loan risk is relatively low. Different collateral and loan currencies may have different collateralization rate requirements.
4. Interest rate
The interest rate for cryptocurrency spot mortgage lending depends on factors such as market supply and demand, collateral type, and loan term. Interest rates may be fixed or floating, and users need to choose the appropriate interest rate type based on their needs and risk tolerance.
5. Repayment and Liquidation
When the loan matures, the user needs to repay according to the agreed interest rate and principal. If market volatility causes the value of collateral to fall to a certain level (often called a liquidation line), the lending platform may trigger liquidation, forcing the sale of collateral to recover loan principal and interest.
6. Applicable scenarios
Cryptocurrency spot mortgage lending can be used in a variety of scenarios, such as cash out, leverage, hedging, etc. Users can choose appropriate lending services based on their needs.
Cryptocurrency spot mortgage lending is a financial service based on blockchain technology that allows users to obtain loans by mortgaging cryptocurrency assets.
 
3. Arbitrage strategy
(1) What to earn from risk-free arbitrageGenerally speaking, it is to earn market price differences and capital fees.
Cryptocurrency risk-free arbitrage is profitable by taking advantage of price differences and funding rates in the market. Here are some of the main ways to achieve profitability:
1. Futures arbitrage
Futures and spot arbitrage refers to taking advantage of the price difference between the spot market and the futures market (including perpetual contracts and delivery contracts) for arbitrage. For example, when futures prices are higher than spot prices, investors can buy a cryptocurrency in the spot market and short the same number of contracts in the futures market. When the price difference between the two markets shrinks or disappears, investors can close their positions and make profits.
2. Cross-exchange arbitrage
This is an arbitrage strategy that takes advantage of price differences between different exchanges. When the price of the same cryptocurrency differs on different exchanges, investors can buy on the exchange with a lower price and sell on the exchange with a higher price, thereby realizing risk-free profits.
3. Arbitrage across trading pairs
This strategy exploits price differences between different trading pairs. For example, there may be a price difference between the BTC/USD trading pair and the BTC/BUSD trading pair on an exchange. Investors can achieve arbitrage by simultaneously buying and selling the same asset in different trading pairs.
4. Triangular Arbitrage
In this strategy, investors take advantage of price differences between three related trading pairs to realize profits. For example, investors can use the three trading pairs BTC/USD, ETH/USD, and BTC/ETH for arbitrage, and simultaneously buy and sell these trading pairs to achieve profits.
5. Utilize funding rates
In perpetual contract trading, the funding rate is the fee used to adjust the long and short power in the market. When the funding rate is positive, longs need to pay shorts; when the funding rate is negative, shorts need to pay longs. Investors can realize arbitrage gains by holding short positions when the funding rate is positive and long positions when the funding rate is negative.
6. Interest arbitrage
In the cryptocurrency lending market, investors can take advantage of interest rate differences between different platforms for arbitrage. For example, investors can borrow funds on a platform with a lower interest rate and then lend funds on a platform with a higher interest rate to realize interest income.
It should be noted that in actual operation, risk-free arbitrage may be affected by transaction fees, fund transfer time, market fluctuations and other factors. Therefore, investors need to carefully evaluate potential risks when implementing arbitrage strategies.
(2) Examples of futures arbitrage profitsWhen the spot price of a currency and the price of the perpetual contract reach a certain price difference, if the price difference is negative, the software will open a long and short position (that is, spot buying and contract short selling); when the price difference is positive, the software will A position will be opened with a long short period (i.e. leveraged borrowing currency to sell, contract long). When the price difference returns, you start to close the position. When the price difference returns, you make a profit. Arbitrage means earning the price difference + capital fee. Open a position for arbitrage with a large price difference, and the position will be automatically cleared when the price difference returns.
for example:
If the spot price of a currency is 1,000 US dollars and the contract price is 1,100 US dollars, in the current < period, a long-term short position will be opened at this time (long spot position, short contract position), then there will be three situations when the price returns:
1. Unilateral rise: For example, the price returns to $1,200,
Then go long 1,000 to 1,200 US dollars on spot and make a profit of 200 US dollars.
If the contract is short between 1100 and 1200 US dollars and the loss is 100 US dollars, the overall profit will be 100 US dollars.
2. Unilateral decline: For example, the price returns to US$900,
Then the spot position is long 1000 to 900 US dollars, and the loss is 100 US dollars.
The contract is short between 1,100 and 900 US dollars, and the profit is 200 US dollars, so the overall profit is 100 US dollars.
3. Intermediate price: For example, the price returns at $1,050
Then go long 1,000 to 1,050 US dollars on spot and make a profit of 50 US dollars.
The contract is short between 1100 and 1050 US dollars, and the profit is 50 US dollars, then the overall profit is 100 US dollars.
Another way to open a position is that the short period is long (short spot, long contract). The same principle applies.
(3) Risk points of risk-free arbitrageWe believe there are two main risk points:
1. The exchange ran away;
2. USDT explodes (becomes worthless).
If the above two points occur, basically all investors will be unable to continue playing.
(4) Risk-free arbitrage type1. Futures strategyFutures and spot arbitrage refers to taking advantage of the price difference between the spot market and the futures market (including perpetual contracts and delivery contracts) for arbitrage.
(1) Long on spot and short on future (long on spot, short on contract)
Long spot and short futures (long spot and short contract) is a futures and spot arbitrage strategy. The core idea of ​​this strategy is to use the price difference between the spot market and the contract market to achieve profits. In this strategy, an investor buys a cryptocurrency on the spot market while shorting the same amount on the contract market (such as a perpetual contract or a delivery contract). In this way, investors can achieve stable returns by hedging risks in the spot market and contract market.
(2) The current short period is long (collateral/cross-margin/isolate short, contract short)
The spot-short multi-term strategy is a futures-spot arbitrage strategy that achieves profits by taking advantage of the price difference between the spot market and the contract market. In this strategy, investors short a cryptocurrency on the spot market while buying the same amount of cryptocurrency on the contract market (such as a perpetual contract or a delivery contract). In this way, investors can achieve stable returns by hedging risks in the spot market and contract market.
2. Period-to-period strategyA term strategy is an arbitrage strategy between contract markets that involves finding and exploiting price differences between different types of contracts.
(1) Perpetual contract vs. perpetual contract
This strategy involves arbitraging between perpetual contracts on two different exchanges. Investors can buy perpetual contracts on one exchange and simultaneously sell the same amount of perpetual contracts on another exchange, thereby taking advantage of the price difference between the two exchanges to achieve risk-free profits. The key to this strategy is to pay close attention to the price difference between the two exchanges and act at the right moment.
(2) Delivery contract versus delivery contract
This strategy involves arbitraging between delivery contracts on two different exchanges. Investors buy a delivery contract on one exchange and sell the same number of delivery contracts on another exchange to take advantage of the price difference between the two exchanges. This strategy requires paying close attention to the expiration date of the contract, as the price differential can change significantly around the expiration date. Investors need to operate at the right time to achieve risk-free profits.
(3) Perpetual contract versus delivery contract
This strategy involves arbitraging between perpetual contracts on one exchange and delivery contracts on another exchange. Investors buy perpetual contracts on one exchange and sell the same number of delivery contracts on another exchange, thereby taking advantage of the price difference between the two to achieve risk-free profits. Since perpetual contracts and delivery contracts have different settlement mechanisms, this strategy requires more attention to the price trend of the contract and the difference in funding rates between exchanges.
3. Cash strategy(1) Spot versus full position leverage
This strategy is an arbitrage between the spot market and cross-margin trading. Investors buy assets in the spot market and short the same amount of assets in the cross-margin market. In this way, when the spot price rises, the profits from the spot market can offset the losses from the cross-margin transaction; when the spot price falls, the profits from the cross-margin transaction can offset the losses from the spot market. Through this strategy, investors can achieve risk-free arbitrage between different markets.
(2) Spot versus isolated margin leverage
This strategy is an arbitrage between the spot market and isolated margin trading. Investors buy assets in the spot market and short the same amount of assets in the isolated margin trading market. Compared with cross-margin leverage trading, isolated margin trading provides higher risk management capabilities because investors can adjust the leverage multiples separately according to the risk levels of different positions. In this strategy, investors need to pay close attention to market price changes in order to operate at the right time.
(3) Mortgage spot versus full position leverage
This strategy is an arbitrage between the collateralized spot market and cross-margin trading. Investors borrow assets in the collateral spot market and sell them for cash, while using the cash to go long the same amount of assets in the cross-margin market. Through this strategy, investors can take advantage of interest rate differences between the lending market and cross-margin trading to achieve risk-free arbitrage.
(4) Mortgage spot versus isolated margin
This strategy is an arbitrage between the collateralized spot market and isolated margin trading. Investors borrow assets in the collateralized spot market and sell them for cash, while using the cash to go long the same amount of assets in the isolated margin trading market. Compared with cross margin trading, isolated margin trading provides higher risk management capabilities. In this strategy, investors need to pay close attention to market price changes in order to operate at the right time.
(5) Risk-free arbitrage across exchangesCryptocurrency risk-free cross-exchange arbitrage refers to the strategy of taking advantage of price differences between different exchanges. Since the cryptocurrency market is spread across the globe, there may be some degree of variation in prices on different exchanges. Investors can take advantage of these differences by buying a low-priced asset on one exchange and selling the same asset on another exchange for a higher price, thereby achieving risk-free returns.
(6) Risk-free arbitrage across trading pairs (different denomination currencies)Cryptocurrency risk-free arbitrage across trading pairs (different denomination currencies) refers to the strategy of using price differences between different denomination currencies for arbitrage. In this strategy, investors look for and exploit price differences between the same cryptocurrency (e.g., Bitcoin) and different denominated currencies (e.g., USDT and USDC) on the same exchange or different exchanges for arbitrage.
(7) Risk-free arbitrage of aliased coinsCryptocurrency risk-free arbitrage (synonyms) refers to an arbitrage strategy that takes advantage of the price difference between different units of measurement (also called synonyms) of the same currency in the cryptocurrency market. In this strategy, investors look for and exploit price differences between different measurement units of the same cryptocurrency on the same exchange or different exchanges for arbitrage, such as spot LUNC/USDT and contract 1000LUNC/USDT.
4. Arbitrage system installation (users who purchase packages do not need to pay attention)
(1) Configure the serverThe super arbitrage system requires at least 5 linux servers (operating system: centos 7). The network must be in a non-China area. It is recommended to go to the exchange to check which areas are restricted areas. It is strongly recommended to purchase a Tokyo area server because Binance’s servers are also In Tokyo.
There may be some difficulties in installing the Linux system. We will provide installation tutorials. It is strongly recommended to purchase the official package and supporting installation services. The tutorial for purchasing Tencent Cloud Linux server by yourself is as follows:
Step 1. Tencent Cloud Server Purchase Process
Register a Tencent Cloud account https://url.cn/whG8OztO, click Product-Application Lightweight Server
Step 2: Select a lightweight application server
 
Step 3. Select Linux server, centos, 7.6 system, Tokyo District 1. It is recommended to use 2 4-core 8G + 3 2-core 4G
 
Step 4: Select the server port to open
 
Step 5. Enter "Firewall"
 
 
 
Step 6: Add rules and add ports 6686, 6687, 6688, 6689, 9000
 
 
Step 7. Set a server password
 
 
Step 8. Remember the public IP and intranet IP
  
Step 9. Reset a server password. The default username is root password.
 
(2) Install arbitrage systemThe super arbitrage system can achieve more powerful arbitrage functions, real-time monitoring of the entire market, all trading pairs, and all trading modes, including unified arbitrage methods such as futures, futures, and cash, and supports unlimited account binding and faster borrowing. The best software arbitrage tools in the industry such as currency speed, price difference reminder robot, arbitrage of different-name coins, and same-price mapping of settlement coins.
1. Purchase software usage rightsOfficial WeChat: xiaoyiclub
Official Telegram: t.me/xiaoyiclub
Contact via the above methods, please provide your email address after purchase for account authorization.
2. Install the super arbitrage systemIt is strongly recommended to purchase the package officially provided by Xiaoyi Quantification, with supporting installation services, and purchase the Tencent Cloud Linux server system by yourself. The installation tutorial is as follows:
1) Configure the server
Step 1: Prepare the server
Prepare at least 5 Linux servers (operating system: centos 7). The network must be in a non-China area. It is recommended to go to the exchange to check which areas are restricted areas and ensure that the server can connect to the exchange normally and use the relevant API. This tutorial is prepared The servers are as follows, six in total. It is recommended that the hardware configuration of the main system and the main market system be slightly higher, such as a 4-core CPU. For others, 2 cores can basically meet the needs.
Organize the format yourself before installation for easy operation.
 
 
Step 2: Open the relevant communication port
Enter the server provider's console, and a total of five TCP ports 6686, 6687, 6688, 6689, and 9000 on all machines are set to allow access.
Step 3: Install the arbitrage software package (RPM package) based on linux (centos 7)
Install the corresponding arbitrage system software on each server, and use SSH to connect to the corresponding server in the first step of the software. Please use the root account to log in. The password is the password set by the user. If it is not set, please enter the server provider console to set it. After logging in to the server, it is recommended to enter the yum update command before all operations (press enter after typing to execute, if prompted to confirm, please enter the letter y and press enter to confirm) to ensure that the server operating system-related software is updated to the latest version.
Main system installation: Command line input: rpm -ivh http://down.xitour.com/shd/cbbshdmain.rpm
Market main system installation: command line input: rpm -ivh http://down.xitour.com/shd/cbbshdmarket.rpm
Asset system installation: Command line input: rpm -ivh http://down.xitour.com/shd/cbbshdassets.rpm
Run point installation: Command line input: rpm -ivh http://down.xitour.com/shd/cbbshdnode.rpm
It is strongly recommended that each of the above systems not be installed on one machine, but installed on different machines. After entering the command, press Enter to execute the installation command. The installation process takes a long time. Each installation package is between 30M-40M. The installation package is large and it takes a few minutes to download and install.
Taking the main system installation as an example, after entering the installation command, you will receive as shown in the screenshot, indicating that the installation is successful:
 
The prompt characters at the beginning of created symlink from indicate that the software installation package has successfully installed the system service in the operating system. This ensures that the software will run automatically after the server is restarted. If the software exits unexpectedly, the system service will also automatically start the software. , the name of this service in the main system is cbbshdmain. If you want to manually restart the software or shut down the software, you need to operate our system service on the command line, as follows:
Restart the main system service: systemctl restart cbbshdmain
Stop the main system service: systemctl stop cbbshdmain
The service names of other subsystems are: asset system (cbbshdassets)
Restart the asset system service: systemctl restart cbbshdassets
Stop the asset system service: systemctl stop cbbshdassets
Market main system (cbbshdmarket),
Restart the market main system service: systemctl restart cbbshdmarket
Stop the market main system service: systemctl stop cbbshdmarket
If you need to manually restart or stop the operation node (cbbshdnode), you only need to follow the above example and replace the service name.
 
2) Configure the system
Configure the main system
Step 1: In your computer browser, enter http://public IP address of the main system: 6686/ to enter the login interface of the main system. When logging in for the first time, the operator's default account is admin and the password is 123456, or communication The password is 12346. After successful login, please be sure to create a new operator account (General Configuration à Account Management).
Step 2: Configure the communication key of the arbitrage system. Set the key through "General Configuration" à "Communication Key Configuration". Note that the communication key is the key required for data encryption and signature between subsystems. Each The subsystems are all set to the same communication key, otherwise they cannot connect.
Step 3: Connect to the market system, through "General Configuration" à "Quote System Connect", enter the IP address and port number of the main market system (if the market system and the main system are on the same intranet, it is strongly recommended to use the intranet IP. The default main system port number is 6688), the example is shown in the figure below (note that the IP in the example should be changed to your own).
Step 4: Connect the asset system. Through "General Configuration" à "Asset System Connect", enter the IP address and port number of the asset system (if the asset system and the main system are on the same intranet, it is strongly recommended to use the intranet IP. The asset owner The system port number is 6687 by default), the example is as shown below (note that the IP in the example should be changed to your own).
 
Configure market system
Step 1: In your computer browser, enter http://public IP address of the main market system: 6688/ to enter the login interface of the main market system. Note that when logging in to the market monitoring system, you are not using the operations of the main system. User account, but communication key to log in. After initial installation, the default password is 123456. After successful login, please be sure to set the key to "General Settings" à "Communication Key Configuration" in the main market system. For the same communication key configured in the main system, when you log in to the main market system later, the communication key will be used instead of the default key.
Step 2: Configure the connection between the main market system and the main system. In "General Settings" à "Main System Connection", enter the IP address and port number of the main system (if they are on the same intranet, please use the intranet IP). The example is as follows: The first time I used 6686
 
 
Step 3: Enter the IP information of the market points in the main market system. In this manual, there are three market points. The respective intranet IPs (note that the intranet IP must be in the same intranet) are: 10.0.0.14, 10.0.0.7, 10.0.0.9, enter all three nodes as shown below:
Step 4: Configure and connect the three market points to the main market system respectively. Enter http://node public IP address:6689/ in your computer browser to enter the login interface. The initial default login password is 123456. After successful login , please be sure to set the key to the same communication key configured in the host system in the "Communication Key Configuration" of the market point. When you log in to the market point later, the communication key will be used instead of the default key. Finally, configure the connection configuration between the market point and the main market system. Click "Connect to the main market system" and enter the IP address of the main market server (this example uses the intranet IP address of the main market system) and port number, as shown in the figure below. Display: The first time I used port 9000.
 
Finally, pay attention to the plot points. Each node must be configured in this way.
Step 5: Configure monitoring conditions. Enter the main market system, click "Monitoring Conditions Configuration" and fill in the conditions you want to monitor, as shown in the figure below:
 
The above picture shows all trading pairs based on USDT as the settlement currency that monitor Binance Spot and Binance USDT Perpetual.
 
Configure the asset management system:
Step 1: In your computer browser, enter http://public IP address of the asset management system: 6687/ to enter the login interface of the asset management system. Note that when logging in to the asset management system, you are not using the main system operation. User account is used to log in, but the communication key is used to log in. After the initial installation, the default password is 123456. After successful login, be sure to set the key to the configuration of the host system in the "Communication Key Configuration" of the asset management system. If you use the same communication key, when you log in to the asset management system later, the communication key will be used instead of the default key.
Step 2: Configure the connection with the main system. In "Main system connection", enter the IP address and port number of the main system, as shown in the figure below:
Note that the intranet IP address used in the above picture is
At this point, the installation and deployment are complete. You can return to the main system to add API.
 
Create arbitrage templates, log in to the software authorization account (general configuration à software authorization) and other operations
5. Preparations before arbitrage
Before you start arbitrage, complete these 19 steps
Step 1: Register for the exchangeBecause you want to earn profit from the price difference, it is recommended to use rebate links. Taking Binance as an example, the permanent rebate is 40% for spot and 35% for contracts. The handling fee is only 50% of that of ordinary users. For ordinary users of Binance, single arbitrage (TAKER transaction, 2 spot transactions and 2 contract transactions) as an example:
general user
BNB is discounted at 25% off spot prices and 10% off contract prices.
Rebate 40%/35%+BNB deduction
0.28 %
0.222 %
0.1368 %
 
Step 2: Account preparationUsers who purchase software packages, account preparation
Arbitrage software exchanges, preferred Binance, Ouyi, Bybit, GATE
The mainland identity system cannot provide KYC verification, you can purchase the identity by yourself (at your own risk)
Available in two ways for free: for reference
Type 1: Palau
After purchasing the card, register for the exchange
The second type: Baidu, find channels by yourself
 
Users who purchase software packages can start setting up from this step:
Step 3: Develop operating interfaceFirst open the purchased server file:
5 operational URLs, open with a computer browser
Main system, market monitoring, asset management, two node servers
Main system:
Market monitoring:
asset Management:
Enter the page to get familiar with it, and then start setting up:
 Step 4: Two-way holding of contractSettings in the mobile exchange: two-way contract positions
The contract must be set to two-way position mode, and go to Contract-Preferences on your mobile phone. (All exchanges used must be set up, including unified accounts)
 
Step 5: Transfer fundsWithin the exchange: transfer funds
Make sure there are funds in the spot, transfer 30U to cross margin, and check the API for leverage permissions in the next step. This step is very important!
 
 Step 6: Create APIOpen the main system operation URL:
Except for withdrawal permission and whitelist, all other API permissions must be checked on Binance API and bound to your server IP address. (Before saving, copy and paste the two strings of passwords)
How to add API to the super arbitrage system (multi-account API can be set up)
To add API, be sure to read the instructions below
Enter the main system platform - API management - add API, and add API related information according to needs. Multiple APIs can be set up in the same exchange, including different APIs not limited to the same account, different APIs for different accounts, etc.
To add API, be sure to read the instructions below
 
Step Seven: Fund DistributionCross-exchange: Take Binance and BYBIT as examples
Fund allocation: Binance spot: $10,000, BY unified account $10,000
 
Step 8: Modify the contract multipleAll perpetual contracts will be changed to 2 times (no need to change spot prices)
Novices cannot exceed 1-2 times, two ways:
1. One-click modification
Enter the main system - general settings - batch modification of leverage digits
 
2. Manual modification
Mobile APP-Adjust leverage-multiply 2 times-confirm
(All trading pairs are modified)
 
 Step 9: Software AuthorizationEnter the main system platform-General Configuration-Software Authorization, enter the authorization account (email)
Click: Log in to the verification software now
 
Step 10: How to create an account in the Super Arbitrage System (for multi-user login)Note: If you are operating alone, this step does not need to be done.
Enter the main system platform-General Configuration-Account Management-Create Account, which can be used for multi-person account login management.
This step can also be used to change the password of any account.
 
 Step 11: How to check whether the subsystem of the super arbitrage system is normalEnter the main system platform - general configuration - subsystem connection monitoring - start testing. If the connection is successful, it means it is available.
 Step 12: How to update the software of Super Arbitrage SystemGo to the main system, click Start Test-Update Now, and restart the software.
(As long as you are prompted to update, check all servers. Update all the servers that are prompted to update. Do not miss any server update)
 
Step 13: Set the communication key for the super arbitrage systemEnter the main system platform-general configuration-communication key configuration and set the communication key for logging in to the main market system, asset system, and node system.
Enter the main system platform - settlement currency equivalent mapping - add mapping. It mainly solves cross-trading pair arbitrage of different settlement currencies. Taking BUSD/USDT as an example, we set it to 1:1. Members are asked to adjust the settings according to the real-time exchange rate.
 
Step 15: How to add a template to the super arbitrage system (can’t see clearly, you can ask customer service for the latest version)Enter the main system platform-arbitrage template-create template
We will list 6 sets of templates for reference, including current long and short, current short and long, term, current, and funding rate (no price difference, but there is a funding rate difference). Members are asked to set and adjust according to their needs.
Some parameters are 0 (0 means no limit, users can set it by themselves)
The parameter description starts from the ** page. There are specific instructions. If you don't know how to contact us in time, don't be self-righteous and cause irreparable losses!
Whether it is set as startup module (setting means startup)
 
1. Current multi-term short module
2. Multiple templates for the current short period 1 (the current short period is divided into full position and isolated position, and separate modules need to be created) 
 
 
3. Multiple templates for the current short period (explanation of parameter functions) 
 Step 16: How to choose monitoring conditions for the super arbitrage systemEnter the market monitoring center - monitoring condition configuration, you need to set it yourself.
 
   
Step 17: How to configure the startup conditions for the super arbitrage system (this step is very important, please set it accurately)Enter the main system platform - general configuration - global parameter configuration, and configure parameters according to your financial situation.
 
Step 18: Setting up startup conditionsEnter the market monitoring system - enable condition configuration and set your own startup conditions. If the conditions are not met, the rules will not run.
 
 
Step 19: Check server operationPlease check the running status of your own server, main system-general settings-resource monitoring
The CPU runs above 80%. It is recommended to upgrade the server to avoid lagging.
 
 At this point, the software has been started.
Please check whether it is consistent with the order opening on the exchange (don’t look at the amount, look at the number of currencies and the amount purchased)
 
6. Precautions
Please carefully study the meaning and function of the following parameters: (to avoid losses)
(1) Super arbitrage system parameter setting and description (0 means inactive)Main system—arbitrage module:
[Template name]
There are many modules, and the name should have the function of the module, so that it can be started in time when encountering market conditions in the future.
【Settlement Coin】
Currency USDT earned when hedging
[Set as startup module]
"Not setting" means not starting, "setting" save means starting immediately.
【Long/Short Exchange】
Go long or short, think carefully, choose the right one, and check it after setting it up.
【Long/Short Account】
Go long: spot and contract (cannot go long for full position and isolated position)
Short selling: full position, isolated position, contract (spot short selling will pledge the borrowed currency, and the probability of liquidation is high)
[Leverage multiple]
Set the leverage multiplier to 2 times (novices should not exceed 2 times)
[handling fee]
1. Register with Xiaoyi link and get rebate (cost saving)
2. Become a helper or partner and save 35%-50% of handling fees (limited to exchanges)
3. Upgrade to VIP and the handling fee will gradually decrease.
[Total amount of one-sided hedging]
Unilateral represents the order amount of one side, and bilateral represents the order amount of both sides.
One leg represents one side, two legs represent both sides
20%-30% of the account amount (too high, you will miss the big spread, the difference will be added as the gradient goes up)
【Hedging the difference】
The price difference for opening a position: more than 0.5 for current multi-module
The current short module is above 0.65 (there is interest cost for borrowing currency)
The current short module can also be above 0.8 (if you borrow currency with a low price difference, you will not open an order, and you will wait to eat the big price difference)
[Clearout price difference]
When this value is reached, liquidation is performed (clearance, not the current price difference)
Current multi-module -0.05 (negative numbers can increase profits, the funding rate is more than positive 0.1, which can be consumed, and there are no other costs)
The current short module is more than 0.05 (it cannot be a negative number, it is difficult to reach a negative number, and it takes time and you have to pay interest on the loan)
[Net funding fee requirements]
You can earn funding rates above 0.001 (if you don’t set it, negative funding fees will also be billed, and a huge funding fee will be deducted and you will lose money)
[Disk difference requirements]
It is recommended to be below 0.5 (too high a depth is not good and risky)
【Clearout Spread】
This value is profit. When this profit is reached, the position will be cleared.
It is not recommended to set it in bear market or bull market (if set, it is equivalent to setting a profit cap)
In a bull market, the market is good, and you can also set it up. If you set it up, you can quickly make profits and change to the next currency.
For example, if you set the "clearance spread" to 0.4%, if the actual opening spread is 0.6%, then the position will be cleared when the spread returns to 0.2%.
If both "clearance spread" and "clearance spread" are set, "clearance spread" will be executed first.
[Minimum and maximum hedging amount for a single transaction]
The bear market is smaller at 30-70, and the bull market is larger at 50-100. If the position is relatively large, you can increase it.
[How to determine the opening amount] [How to determine the clearance amount]
The total amount is determined according to the handicap, that is, buying one and selling one
[Order type]
All market prices
[How to place an order]
Place orders at the same time
[Short selling automatically transferred into settlement currency] [Short selling automatically borrowed base currency]
Spot long: disabled
Cross-margin, individual-margin short selling: enabled
[Short borrowing base currency type]
Borrow all at once
[Short borrowing channel]
Inherited account types
[Automatic repayment of coins for short selling]
If enabled, coins will be automatically returned after liquidation.
If you feel that the price difference of the currency will continue to rise, you can temporarily disable it. If the price difference rises again, you can continue to open orders with the currency to avoid being unable to borrow the currency.
[Short borrowing interest requirements (daily %)]
Below 0.5% or below 0.3% in bear market, so as to avoid incurring interest on borrowed coins without issuing an order.
The bull market can be below 1%, because the currency price fluctuates greatly in the bull market, and orders can be opened at any time.
[Amount of single borrowed currency for short selling]
It can be consistent with the total amount of unilateral hedging (too low is not enough to open a position, too high is enough to pay interest on the excess)
[Short borrowing currency triggers price difference]
0.15-0.25 (Too low, if you borrow coins, the price difference may no longer rise and you will have to pay interest; if it is too high, you will not be able to borrow coins)
[Advance loan spread maintenance (seconds)]
1-2 seconds is enough, as long as the price difference is not instantaneous
1 second (if the price difference is less than 1 second, the price difference is likely to be settled instantly)
If it is higher than 2 seconds, the price difference may be too high and the currency cannot be borrowed.
[Short borrowing currency idle timeout]
Less than 1 hour (3500 seconds)
If the price difference does not increase in the past hour, it’s time to return the currency.
Above 3600 seconds, you need to pay interest for the next hour
The time for deducting interest is: when borrowing currency and on the hour
When the hour is approaching, if the interest rate is too high and no bill has been issued, you can clean it up and save interest costs.
[Length of time to stop borrowing after debt is cleared (seconds)]
0-60 seconds, don’t be too long. Some currency price differences may continue to widen after the price difference returns.
[Duration of automatic transfer out of excess margin (seconds)]
0-10 seconds, you can continue to borrow money automatically after transferring out
[Leverage multiple maintained when margin exceeds]
When there is a position, the multiple to be maintained can be set to 0-2 times
[Liquidation is approaching and position reduction (%)]
When the currency is close to 5% of the liquidation price (for example, set 5%), the position will be reduced according to the actual price difference.
For example, if you liquidate your position at 100 yuan, you can reduce your position when you set it to 97 yuan. After a little reduction, your liquidation price will become 105 yuan and then it will not be reduced. It is safer and has less wear and tear. In the past, you had to set up a gradient liquidation. Keep grinding at 30%-80%
When the loss is stopped, the advantages of this function are more obvious.
[Extra safety distance during forced reduction]
For example setting: 5%
If the liquidation is approaching and the position is reduced by 5%, plus a safe distance, the position will be reduced to 10% from the liquidation price.
[Floating loss reminder (%)]
DingTalk reminder settings, receive information if there is a loss
[Additional redundancy (%) after liquidation and reduction of positions is approaching]
After the position reduction is triggered, liquidation +N% of redundancy is required to continue opening a position, 30% is recommended.
[Long floating loss liquidation amplitude (%)] [Short floating loss liquidation amplitude (%)]
It can be set to 0, but small exchanges can set it larger.
When the price develops in an unfavorable direction and reaches the corresponding amplitude, a liquidation operation is performed.
[Net funding fee maintenance]
0.1 (if the settlement of the funding fee is approaching, clear the position after paying the funding fee)
In the case of short position, if you have just received the funding fee, the funding rate will be multiplied by 3. If it is less than the daily interest, the position will be cleared.
(Otherwise, the capital fees earned will not be enough for 8 hours of borrowing interest)
[Net single leg timeout clearance (seconds)]
600 seconds (if one party has an abnormal short position, the other party will definitely have a 50% chance of making money, and it will take 10 minutes to clear the position)
[Idle automatic shutdown rule (minutes)]
3-10 minutes to reduce the burden on the main system
[Transfer profits to opponent (%)]
10%-50% (pay more attention to the funds in the hedging account to avoid one-sided funds in the bull market)
[Prohibition of opening positions and exploding rate]
Recommend 25%-50%. For example, 50%, if the burst rate is less than or equal to 50%, no positions will be opened. If it is lower than 50%, please make up the margin (manually), especially for isolated positions, cross positions, and contracts. It is recommended that the burst rate be guaranteed to be above 100% before going to bed.
[Clearance when paying the fee]
Just eat the funding rate and automatically clear the position.
It is recommended that it depends on the situation, as some transactions are currently unable to obtain the current funding fee.
 
(2) DingTalk reminderIt is necessary to set it up (be the first to know about big changes)
Gradient setting: the bear market spread is smaller, the bull market spread is larger
(The discrepancy must be set to avoid getting junk coins)
Market monitoring-start condition configuration
 
 
(3) Market monitoring server-start condition settingStart spread:
0.15 or above (less than the hedging spread of all your modules and less than the borrowing spread)
Start arbitrage net capital fee (market monitoring);
0.001 or above (if not set, negative funding fees will also be pushed to the main system for billing)
Conditions for opening a position:
1. Greater than the hedging spread 2. Greater than the net funding fee;
2. Less than the market difference requirement 4. Meet the conditions for starting market monitoring.
Want to clear the position manually:
1. The clearance spread is set higher than the actual clearance spread displayed;
2. The net funding fee remains changed to 0.
Note: Remember that the opening spread cannot be the same as or close to the clearance spread, otherwise the system will buy and sell, buy and sell again, and keep paying handling fees.
 (4) Re-emphasis on several points of attention1. Please add this server IP to the whitelist in all exchange APIs;
2. OKEX needs to set the opening mode, opening and closing mode, and cross-currency margin mode. OKEX’s API must have a password; when adding the API, the password must also be added.
3. For OKEX cross-currency margin mode, please fill in "crossmargin" in the extension field, otherwise please leave it blank to use single-currency margin mode;
4. If you want to use the cross position mode of Huobi USDT Perpetual, fill in "cross" without double quotes and must be in lowercase letters. If left blank or otherwise, it will be the isolated position mode;
5. For Binance futures, this software only supports two-way positions, please go to Binance APP settings;
6. Binance contracts enable joint margin, so that all coins in it can open USDT contracts;
7. In super arbitrage market monitoring, no matter whether the current price is long or short, the price difference is positive to make money;
8. The main system does not need to create currencies by itself. The coins that meet the requirements in the market monitoring will be automatically pushed to the main system. When the price difference conditions in the template are met, a position will be automatically opened;
9. Small coins that have been traded in spot and isolated positions must be converted into USDT in a timely manner. A drop in small coins is also a loss.
 
(5) How to add aliased coins to the super arbitrage systemEnter the main system platform - base currency equivalent mapping - add mapping and fill in as needed. This mainly solves the problem that the exchange uses different trading pair names in the contract. They are essentially the same trading pair, such as LUNC/1000LUNC. We have adopted 1000:1 mapping.
 
 
 
(6) How to add settlement currency equivalent mapping to the super arbitrage systemEnter the main system platform - settlement currency equivalent mapping - add mapping. It mainly solves cross-trading pair arbitrage of different settlement currencies. Taking BUSD/USDT as an example, we set it to 1:1. Members are asked to adjust the settings according to the real-time exchange rate.
 
 (7) How to set up data forwarding in the super arbitrage systemEnter the main system platform-general configuration-data forwarding node management-add node.
If all servers are in a local area network, it is recommended to use the intranet IP. After adding, the test shows "Connection is OK".
Add the IP (internal) of market monitoring, asset management, node 1, node 2...
The communication port is the last 4 digits of IP (public)
 
 (8) How does the super arbitrage system configure the arbitrage robot reminder service?DingTalk price difference reminder setting: This item is just a DingTalk reminder. If you don’t want to do it, don’t use the following. Does not affect billing.
Download and install the DingTalk computer client. After logging in, create a group chat (only internal groups can be added), enter the group settings smart group assistant, and click Add Robot (after October 16, 2023, set as shown in the figure),
Copy the entire URL of the webhook, and copy the content behind the access_token= of https://oapi.dingtalk.com/robot/send?access_token=xxx in the URL for later use (called Access Token in our software), and the extraction is safe The optional key backup (called Access Key in our software), as shown in the figure below:
access_token：f1b261b71***
Access Key：SEC7e2***
 
 
Copy the access token and access key to the main system platform - general configuration - DingTalk reminder configuration
 
 
Copy the access token and access key to the main market monitoring system (general setting DingTalk reminder configuration). At this point, the DingTalk reminder API configuration is successful. Continue to enter the price difference reminder configuration on the main interface of the market monitoring system for specific settings.
 
Enter the market monitoring system-price difference reminder configuration and set up your own robot price difference reminder service configuration.
 
 
 
7. Frequently Asked Questions about Super Arbitrage System
(1) Basic issuesWhat are the advantages of the Super Arbitrage System?
The super arbitrage system can achieve more powerful arbitrage functions, real-time monitoring of the entire market, all trading pairs, and all trading modes, including futures, futures, cash and other arbitrage methods. It supports unlimited account binding, faster borrowing speed, The best software arbitrage tools in the industry such as price difference reminder robots, different-name currency arbitrage, and settlement currency same-price mapping.
Advantages of super arbitrage and traditional futures arbitrage:
(1) Unlimited APIs. In the past, you could only bind one person’s Binance account, but now you can bind unlimited APIs;
(2) The software changes from a collection to a focus on arbitrage to avoid lags between multiple functions;
(3) The operating system is converted from Windows to Linux, which runs more stably and faster;
(4) Each server has a clear division of labor, main system + asset system + market monitoring + nodes 1/2/3/4... to obtain the fastest market prices and greatly increase the response speed;
(5) Intranet interconnection can be additionally implemented. Intranet interconnection of servers in the same area is faster and reduces delayed resolution;
(6) Super arbitrage not only includes futures and cash arbitrage, but also futures and cash arbitrage, which is more cost-effective.
The role of capital fees
To play futures arbitrage trading strategies, you must first understand a concept: funding rate.
(1) The role of funding rate
The key role of the funding rate is to narrow the price difference (price regression) between the perpetual contract market and the corresponding spot market.
(2) Why the funding rate is so important
Traditional contracts are cleared monthly or quarterly, depending on the contract specifications. At liquidation, the contract price converges with the spot price and all open positions expire. Perpetual contracts are widely used by many crypto-asset derivatives trading platforms and are designed similarly to traditional contracts, with one key difference.
Unlike traditional contracts, perpetual contract traders can hold a position forever, with no expiry date and no need to track different delivery months. For example, a trader can hold a short position permanently until it is closed. Therefore, trading perpetual contracts is very similar to trading spot market pairs.
All in all, perpetual contracts do not liquidate in the traditional way. Because of this, crypto asset trading platforms have created a mechanism to ensure that contract prices match index prices, a mechanism known as funding rates.
(3) What is the funding rate?
The funding rate refers to the periodic fee paid to long or short traders based on the difference between the market price of the perpetual contract and the spot price.
For example, if the current spot price is lower than the price of the perpetual contract, for example, 1% lower, then it means that the price of the perpetual contract is on the high side, and the exchange will adjust the funding fee to a positive number, that is, the long position will have to pay funds to the short position. If the long position holds long orders for a long time, the long position will have to pay continuously. The last resort is to close the long position, that is, sell the long position, causing the price of the perpetual contract to fall and move closer to the spot price.
According to the above example, if the spot is bought to go long and the contract is sold to go short, will the price return? Almost without exception, it will return. If the price difference continues to expand, that is, the contract price continues to be higher than the spot price. The pressure on the bulls is increasing, because they have to pay funding fees, which can reach up to 0.75%, three times a day, which means they have to pay a maximum of more than two points a day in funding fees, and this funding fee is calculated based on the face value of the contract. So, as I said before. If the futures price difference of a currency is maintained for a long time. Even if the spread doesn't revert, you'll usually still earn the funding fee. Funding fees of up to 0.75% are also very affordable.
Summarize:
(1) Perpetual contracts have no expiration or settlement date, and a "funding rate mechanism" is required to anchor the contract price to the spot price.
(2) The perpetual contract is settled every 8 hours, and capital fees are generated at the time of settlement, respectively at (GMT+8) 08:00, 16:00 and 0:00; only users holding positions at this time are required Collect or pay a funding fee; if you close your position before the fee is charged, you will not need to pay a funding fee.
(3) The exchange does not charge any funding fees; funding fees are collected/returned between users. Funding fees are charged/refunded in the underlying currency, and fees are paid periodically every 8 hours between long and short positions.
(4) When the funding rate is positive, long positions will pay short positions; when the funding rate is negative, short positions will pay long positions.
How much principal is required for super arbitrage?
In fact, there is no minimum principal requirement, but the principal is too small and it is difficult to lock in profits. More funds will result in a higher absolute value of profits.
Based on the current market conditions, how much trading volume can be done in a day?
We recommend that members try it on their own first. Most members don’t understand the market or operations well at first, so they give up easily. If they don’t make money, they will blame our software. In fact, the quality of a tool depends on the person who uses it. Our quantitative arbitrage The software is considered very good in the industry.
Does arbitrage require manual intervention?
Generally speaking, risk-free arbitrage is automatically implemented by programs. We do not recommend manual operation. However, sometimes when encountering big market conditions, manual intervention and software are required to arbitrage. This generally involves high risks, but the profits are very high.
(2) Server problemsWhy do you need more than 5 servers? What are the differences between servers? How to improve transaction speed through services?
The super arbitrage system is mainly classified into main system, market main system, asset system and market point system.
Super Arbitrage runs purely in memory, and each subsystem is separated. The market system only cares about market conditions, the asset system only cares about assets, and the main system only cares about rule operation and order placement. do not affect each other. But like if on one machine. If all are monitored, the CPU may be 100%. No matter how powerful the machine is, it is difficult because there is still pressure from the network card.
The main system is mainly used to place orders quickly and requires a high server configuration. It generally requires 4 cores and 8G or more. High-end users recommend 8 cores and 16G.
The market main system is mainly used to calculate price differences, consumes the most CPU, and requires a high server configuration. It generally requires 4 cores and 8G or more. High-end users recommend 8 cores and 16G.
The asset system is mainly used for asset information such as loans and contracts. The configuration requirements are not high and generally require 2 cores and 4G or more.
The market point system is used to monitor the market conditions of each exchange. It is recommended to configure multiple node servers. Nodes in different regions are located at different exchange server locations. It is recommended to configure more than 2 units, generally requiring 2 cores and 4G or more.
If you mainly do it in Binance, we recommend using the Tokyo server, because Binance’s server is also in Tokyo, which improves millimeter-level speed.
The above servers are in the super arbitrage package and we have fully configured them.
How to open a new set of servers and how to back up the data of the original server?
The backup method is as follows (taking the main control as an example): Enter the server command line and enter systemctl stop cbbshdmain
Stop the software master control, and then use software such as FileZilla. No matter what software, it is convenient to be able to visually see the directory. Enter the software directory /opt/cbbshd/main and back up the entire data data in the main directory. .
To restore to a new machine, make sure the new machine is clean and install the software. The specific installation method is in the deployment document. After installation, you also need to stop the software first, that is, enter systemctl stop cbbshdmain on the command line. After stopping, use visual file operation software, FileZilla as mentioned above (depending on personal habits), enter /opt/cbbshd/main, upload the data directory backed up earlier, and finally enter systemctl in the command line restart cbbshdmain restarts the main control software.
(3) Game play/template issuesDo we have any good strategy templates available?
We will provide basic templates, but the strategy itself will be invalid. Members must adjust their strategies according to the market environment and timing.
Which arbitrage model is more profitable?
In terms of our current futures, futures, and cash arbitrage, daily transactions in futures are more frequent and will generate more income. But the income is actually based on the individual's understanding of the market and the grasp of opportunities. Higher profits must be the mutual influence of arbitrage procedures, market sense, market funds and information gaps.
The market sense and information are poor. For example, if there is a change in the market, an exchange issues an announcement, which will have a significant impact on a certain currency at a fixed point in time. You have seen it and are keenly aware of it. You can do it through software. , such as the OMG incident in November 2021, the price difference reached 30% within a few minutes that day.
Futures arbitrage is very simple every day and does not take much time. What do we do every day?
The goal is to earn capital fees, three points: 0, 8, and 16.
The goal before settlement is to have a full position, but full position requires conditions, such as looking at the overall market situation. I use a monitor.
(1) If the hedging spread is 0.3-0.4, the capital fee is 0.18-0.24
If you hold a low position, you want to quickly fill up the position 0.3 + 0.18, and if you hold a high position, you can slowly fill the position 0.4 + 0.19. What shall we do after eating! ! ! Waiting for settlement!
(2) What to do after settlement?
0.3, 0.35, 0.4, because of the 0.2 handling fee, the capital-guaranteed clearance price difference is around 0.1-0.2. I have settled and I have received this wave of funding fees. You should try to release some funds before the next wave of settlement to give yourself a chance. For example, the released funds were shorted after two waves of WAVES, resulting in a profit of 100-150 U. We can set a clearance spread of 0.08 and 0.13 after the settlement is completed to allow him to clear the position slowly, release funds, and clear the position with capital preservation. For example, if you have 50,000 U, you may release 20,000 U. 20,000 U is an active fund.
As long as there is an opportunity in the middle, you will get out of poverty and become a high-price spread list. The benefit you get in the middle is pure luck. You eat 1% of the waves, deduct 0.2, and there is still 0.8. You can choose between 0.2, 0.3, You can make money by clearing out 0.4 and 0.5.
After eating at 16 o'clock, the target fund fee is 0 points. Eat in a targeted manner. Only eat the top 5. If the fund fee is not much different, just set a parameter and apply it as a whole. This is convenient.
(3) The most important thing is that clearing the capital fee will seriously hinder your progress! For example, the maximum capital fee is 0.3. If you have time, you can set a 0.3 clearance difference for the capital fee below 0.1 and slowly clear it out. You are not forced to clear it out!
Some thoughts on adjusting arbitrage spreads
I believe that arbitrage spreads are subject to adjustment based on market variability.
For example, taking the current long-short spot on Binance as an example, a spread of 0.4% may be more suitable now, but once the market is high, a spread of 0.6-0.7% may be needed.
For example, for the same spot long-term and short-term, there will be a larger price difference across exchanges. For this, you need to look at the normal price difference fluctuations between different exchanges. According to the price difference fluctuations, enter the startup template.
For example, if there is a long short period, a 0.6% spread on Binance may be more suitable, which also involves loan interest, handling fees, etc. However, when the market fluctuates violently, it is very likely to reach a fluctuation of 2-3%, and may even reach 10 % or more price difference.
In short, the arbitrage spread is adjusted at any time based on the changes in the market. The risk-free arbitrage system can also run fully automatically, but relatively speaking, there are fewer opportunities.
The rising market mainly opens long-term shorts, so wouldn’t it be impossible to play in a bear market?
When there is a sharp drop or a sustained decline, orders are mainly for long current short periods, rather than long current short periods. Taking the actual sharp drop in May as an example, orders are basically for long current short periods. The principle is the same as the current long position. The opening price difference is more than 0.4%, and the closing price difference is -0.1 to 0.1. However, the multiple of the position-specific leverage should not exceed 1. You can also eat the price difference and capital fees.
No matter what the market situation is, as long as someone buys a perpetual contract, there will be a price difference and funding fee, and an order can be automatically opened to be long or short.
A futures arbitrage method that uses the exchange to suspend trading
After years of observation and practice, we have discovered that when an exchange suspends trading for some reason, it will lead to a large price difference between the spot and contract markets. We can take advantage of the time when trading is open to instantly absorb the price difference and obtain huge profits.
For example, on March 24, 2023, Binance suspended spot trading due to system reasons. At 22:00 that night, trading was opened, which resulted in a premium in the spot and contract markets. At this time, the price difference was instantly absorbed and profits were made.
An introduction to advanced gameplay (novices should not play this game)
Analysis of the situation where the price difference becomes lower as the price increases (spot single leg)
Original by Brother Bin
Assume that the spot price is 10 yuan, the contract price is 11 yuan, and the opening price difference is 1%.
The current spot and contract position amounts are both 230 yuan.
Assume that the spot price of a single leg is 30 yuan at this time.
Spot: Position amount 230 yuan, quantity: 23 pieces
Contract: Position amount 200 yuan, quantity: 18.18 contracts
After a period of time, the market price reaches the opening spread of 1%.
At this time, the spot price is 8 yuan and the contract price is 8.8 yuan, which meets the spread requirements.
The purchase amount of the contract is 30 yuan, the quantity is 3.4 contracts, and the total amount is balanced. After the operation is completed,
Spot: Position amount 230 yuan, quantity: 23, average price 10 yuan
Contract: Position amount 230 yuan, quantity: 21.58 contracts, average price 10.65 yuan
The price difference at this time becomes 0.65%
Why is this happening? Because when balancing the spot leg, the contract's opening price of 8.8 yuan is already less than the original price of the spot leg of 10 yuan. I call it price overreach.
Analysis of the situation where the price difference becomes lower as the price increases (contract single leg)
Assume that the spot price is 10 yuan, the contract price is 11 yuan, and the opening price difference is 1%.
The current spot and contract position amounts are both 230 yuan.
Assume that at this time, the contract side appears to be 30 yuan per leg,
Spot: Position amount 200 yuan, quantity: 20 pieces
Contract: Position amount 230 yuan, quantity: 20.9 contracts
After a period of time, the market price reaches the opening spread of 1%.
At this time, the spot price is 12 yuan and the contract price is 13.2 yuan, which meets the spread requirements.
The spot purchase amount is 30 yuan, the quantity is 2.5, and the total amount is balanced. After the operation is completed
Spot: Position amount 230 yuan, quantity: 22.5, average price 10.2 yuan
Contract: Position amount 230 yuan, quantity: 20.9 contracts, average price 11 yuan
The price difference at this time becomes 0.78%
Why is this so? Because when balancing the single leg of the contract, the spot purchase price of 12 yuan is already greater than the original price of the single leg of the contract of 11 yuan. I call it a price out of bounds.
Under normal circumstances, when a spot contract is opened, even if there is slippage, it will not continuously open lower and lower. As long as each spot contract can be opened at the same time, even if the price changes, as long as the price difference requirements are met, it will be OK. Yes, the software calculates the price difference using a weighted average.
How did this single leg form?
1. When a single leg is formed when opening a position, if there is no time to trigger the automatic clearing of the single leg, assuming that the price fluctuates greatly at this time, the price will cross the boundary when balancing the single leg.
2. Form a single leg during clearance.
Generally speaking, the price spread is low when the position is cleared. When the single leg is formed during the liquidation, by the time it can meet the opening price spread again, a period of time has passed, and the price may have changed significantly. When the single leg is balanced, it will If the price crosses the boundary, the software will not automatically clear the liquidation leg.
Let me tell you a trick to double your profits
Taking Dogecoin as an example, assuming that today’s Dogecoin price difference is between a positive number of 0.1 and 0.8, there is only short position and no long position.
You can do it like this
Spot 10,000 U, leverage 5,000 U, contract 5,000 U
If you are currently long and short, set a negative number of 0.1 to open a position, and a negative number of 0.8 to clear the position.
The current short period is set to 0.8 for opening a position and 0.1 for clearing a position.
The running process is like this,
Assume the spread starts from 0.1
First, a long position was opened, and the price difference climbed to 0.8 to clear the position.
The spread started to fall from 0.8
At this time, the short position will be opened and the position will be cleared at 0.1
Assuming that the price difference has been fluctuating between 0.1 and 0.8, this can take it all in both directions and double the efficiency.
The principle is to use negative 0.1 to open a long position and negative 0.8 to clear a long position.
principle:
Our normal open long position must be 0.8 to open and 0.1 to clear positions. Sometimes in order to make more money, we set a negative spread to clear positions. Can everyone understand this?
The current short mode has a price fluctuation range between 0.1 and 0.8.
Corresponding to the current multi-mode, the spread range is negative between 0.1~0.8
We regard the current empty scene as a current multi operation, and set negative 0.1 to open and negative 0.8 to clear.
This solution solves 2 problems:
1. The problem of being unable to borrow currency if you are currently short;
2. Assume that the fluctuation process of the current short price difference is from 0.1 to 0.8, and the current short position cannot be opened until the current short price reaches 0.8.
We can first use the current position to open a position at 0.1, which is 2 operations and 2 times the efficiency.
 
(4) Issues with startup rulesWhat is the difference between activated templates and non-activated templates?
Enter the main system platform-arbitrage template-modify template-set as startup template, select "Don't set" or "Set".
The startup template represents the rules that will be run if the startup conditions you require are met.
Do not start the template, indicating rules that can be replaced manually.
 
How many seconds to start spread setting
In the market system - startup condition configuration, it is recommended to set the price difference in the startup condition for more than 3 seconds to prevent instant market fluctuations in copycats and super arbitrage to detect the price difference. However, since there are deep problems in the moment, it is more secure to have this setting.
How to enable specific templates for uninitiated rules
Enter the market monitoring system, select the operating rules, and select "Template Start" or "Self-Selected Start"
How to control the number of opening rules and the opening amount
Enter the main system platform-select "Global Pause"
Or enter the main system platform-General Configuration-Global Parameter Configuration, allow global total positions (two legs), maximum total position of a single account (one side), allow the number of simultaneous position rules, allow the number of rules to be run simultaneously, adjust "0"
What should I do if a single rule does not need to be run?
Enter the main system platform-selected rules-suspend to suspend a single rule individually, mainly for handling unexpected situations.
 
What should I do if I don’t want to display a single currency?
Enter the market monitoring system-monitoring condition configuration-fill in the base currency blacklist
How many exchanges and trading pairs can the super arbitrage system monitor?
Theoretically speaking, under the full market environment, all trading pairs are estimated to be in the tens of thousands, and exchanges and trading pairs will continue to be added according to the progress, and even access to decentralized exchanges will be considered in the future.
How to specify to monitor certain exchanges and certain hedging types
Enter the market monitoring system-monitoring condition settings and select the exchange and hedging type you need to monitor.
(5) Technical parameter issuesUnder what circumstances do parameters need to be modified?
For example, if your software is set to 0.6% to start the software, but you observe that the currency has maintained a spread of 0.5%, considering that you only have a handling fee of 0.1-0.2%, then adjust the spread to 0.45-0.5% and eat this quickly. price difference.
"Determine the total amount based on the odds", "Single minimum" and "Maximum hedging amount" and "One-sided total amount"
The maximum offset amount is only valid when the "total amount is determined based on the odds". Otherwise, the order will always be placed with the minimum amount. If it is set to "Determine the total amount based on the market price", the order amount will be determined within this minimum and maximum range. If you want to buy, you will check how much you have to sell to determine the number of coins to buy. The same goes for selling, depending on the size of the opponent's order.
For example, if you plan to buy at a price of 100, because it is the market price, if you buy it at 101, you will lose 1 yuan. Compared with the current price, there is a 1% difference. The total unilateral hedging amount we set is 2,000 knives. We also It's impossible to bet all 2,000 dollars at once. What if it slips. Therefore, when the price difference is 1%, the 2,000 dollars will be divided into small amounts. This small amount is not a fixed amount (you can set it to be fixed), and will fluctuate within the range of the minimum single transaction and the maximum single transaction specified by your parameters. .
What is slippage? How to reduce slippage?
Slippage is the difference in transaction depth, that is, the amount of pending orders is small, or the pending orders are too scattered, causing you to get a lower price in one bite when trading take orders. Originally, you set a 0.5% take, and each take is 30U, but if the pending order is only 10U, then the remaining 20U will continue to be taken, resulting in obvious slippage.
Severe slippage will result in reverse orders and profit taking. You can use a fixed minimum value to eat slowly and reduce slippage.
How to understand "discrepancy"
The spread is equal to the absolute value of the opening spread - the clearance spread. The larger the spread, the worse the depth of the currency, so please be cautious.
How to understand the difference between current price difference, clearing difference, actual opening, etc.
The current price difference is the real-time opening price difference; the clearance price is the price difference when the position is cleared; the actual opening price is the real price difference of the actual opening position.
The longs have buy and sell orders, and the shorts have buy and sell orders. Since the orders are taken at the market price, they all look at the opponent's price. When opening a position, the longs will focus on the selling orders, and the shorts will focus on the buying orders. When clearing the position, the longs will sell. out. They will keep an eye on buying orders, short positions will be closed if they want to buy, and they will keep an eye on selling orders. There is a difference between buying one and selling one.
When opening a position, if longs want to buy, they will focus on the selling price; if shorts want to sell, they will focus on the buying price. Compare the long selling price and the short buying price to see if there is a price difference. If the price is met, start buying long and selling short.
When closing a position, if a long position wants to sell, it will focus on the buying price. If a short position wants to buy, it will focus on the selling price. Compare the buying price of the long position with the selling price of the short position to see whether it meets the liquidation conditions and expectations. That is, long selling starts and short buying starts.
In any market, the buy one will definitely be less than the sell one. If the buy one is greater than the sell one, it is a deal. Therefore, the handicap you see is 100% that the buy is less than the sell is one.
More examples of current short periods
Spot BTC
Sell ​​one: 10,000
Buy one: 9999
Contract BTC
Sell ​​one: 9996
Buy one: 9995
The spot price is higher, and there are currently many short periods.
Opening spread formula: ((spot buying price 1-contract selling price 1)/contract selling price 1)*100 That is: ((9999-9996)/9996)*100=0.030012%
Clearance spread formula: ((Spot selling price 1-Contract buying price 1)/Contract buying price 1)*100 That is: ((10000-9995)/9995)*100=0.050025%
Is the clearance spread always higher than the opening spread?
Why the above formula? When the spot is short (when opening a position), since the spot is sold to open a short position, you should focus on the buy price of 1 for the spot market, and vice versa for the contract, focus on the sell price of 1 for the contract market, and vice versa when clearing the position.
(6) Common function issuesHow to test software usability
Directly use BTC to test the long-term short and current short-term long hedging. It’s very simple. Note that for Binance futures, you need to manually change it to two-way positions on the exchange. The template settings are roughly as follows:
Why set up a communication key
All subsystems should set the same communication key, because subsystems rely on this key to communicate with each other to verify the validity of the data. If you want to change the communication key, all subsystems must change it, because Communications must be encrypted and verified.
How to automatically deal with small single legs if they occur
Sometimes due to the influence of currency depth, single-leg positions appear, and we handle them through "net single-leg timeout clearance". Fill in "600", which means that the single-leg position will be automatically cleared after 600 seconds.
Does the super arbitrage system need to add trading pairs by itself?
No, it runs fully automatically. The main system does not need to create currencies by itself. The coins that meet the requirements in the market monitoring will be automatically pushed to the main system, and the position will be automatically opened when the price difference conditions in the template are met.
Does the super arbitrage system need to manually start the rules?
No, it runs fully automatically. The system will push the rules that meet the conditions to the main system platform through the market monitoring system.
How to set exchange fees?
Main system platform - arbitrage template - modify the template and fill in your own handling fee rate in the handling fee. The system will calculate the handling fee during the execution process.
What is the difference between liquidation spread and liquidation spread? Which condition takes precedence?
The liquidation spread represents the price difference between the two currencies for arbitrage. For example, if it is set to 0.1%, if you open at 0.6%, then when the price difference becomes 0.1% for liquidation, the gross profit will be 0.6%-0.1%=0.5%. Under special instructions, the clearance spread can be set to a negative number, such as -0.1%, which represents a profit of 0.6%--0.1%=0.7%, which can effectively increase the profit margin.
The liquidation spread represents the absolute value of the interest rate difference between the two currencies for arbitrage. For example, if you set the liquidation spread to 0.3%, if you actually open the position at 0.6%, you will clear the position after 0.3%. In one case, you open the position at 0.6%, and the actual position will be cleared. If 0.4% is opened, the rule will be 0.4%-0.3%=0.1% to clear the position.
If both the clearance spread and the clearance spread are set, the clearance spread will be executed first.
The concept of recommended minimum opening spreads and transaction costs
For example, your transaction fee is 0.1% for spot and 0.04% for contract. For example, the total amount of one-sided hedging is 10,000 U.S. dollars, which is already full. The transaction fee generated at this time is 10,000*0.1%= generated on the spot side. 10 knives. The opening handling fee on the contract side is 10000*0.04%=4 knives. There is a total handling fee of 14 knives for opening a position. This is just for opening a position. If the position is cleared, a handling fee of about 14 knives will also be incurred. Once opened and cleared, the handling fee is about 28 dollars.
If the spread is 1% and a total of $10,000 is opened, when the spread returns to 0 and the position is cleared, you will earn a total of $100. Of course, you may also incur capital fees at this time. Let’s not forget about this.
So, roughly. If you have a spot fee of 0.1% and a contract fee of 0.04%. If you open it with a price difference of 0.3%, you will basically protect your capital. According to this calculation, it is basically the addition of the fee rates on both sides, multiplied by 2 and then multiplied by your "total amount of one-sided hedging", which is the total transaction cost after you open a position and then close it.
Is the total amount of one-sided hedging affected by the total amount of gradient?
For example, the total amount of one side is 10,000, the gradient is 0.8 to 0.9, the total amount is 5,000, and the total amount from 0.9 to 1 is 10,000. When the price difference reaches 1, should the order be placed for 10,000 or 25,000.
The gradient will override the settings above, provided the spread falls within the spread range you set, which is basically, the larger the spread, the larger the spread. The total amount of the hedge can be correspondingly larger.
Can the liquidation spread of futures and spot arbitrage be set to a negative number?
Can. For example, set -0.05%, 0.1, 0.05, 0.01, -0.01, -0.05.
The smaller it is, the more you want to make. You can even set it to -0.3, but it may not be until 0.01 that you won't clear your position for a long time.
What should I do if too many rules are activated but there is no price difference?
We sometimes set the startup spread to 0.3%. In fact, the hedging spread of our software is 0.6%. At this time, the rules will not run. We can reduce the burden on the main system by setting the "idle automatic shutdown rule".
If the funding fee is high, is it possible to lock in the funding fee without clearing the position yourself?
Enter the main system - Arbitrage Template - Modify Template - Net Funding Fee Retention (%), for example, fill in 0.1%, which means that if you can earn 0.1% from a single funding fee, this rule will not clear the position.
How do you know if you have made a profit? How much of a clearance spread should you set to make a profit?
Your actual profit = actual opening price-handling fee 0.2-clearance price.
Capital-guaranteed liquidation spread = actual opening spread - handling fee of 0.2.
For example: the actual opening spread is 0.6, deducting the handling fee of 0.2, and still earning 0.4%. The capital-guaranteed spread is 0.4%. If you clear the position with 0.1, you will earn 0.4-0.1=0.3.
If the market is good, the actual opening price difference is 1%, deducting 0.2 and there is still 0.8% profit, and the capital-guaranteed price difference is 0.8%. Even if you clear the position at 0.4, you can still earn 0.4%. If you clear the position at 0.01%, you will earn 0.8%.
When the market is low, the spread is generally low. If the actual opening spread is 0.3%, after deducting 0.2%, there is still 0.1% left. At this time, your clearance spread cannot be set high.
How to borrow currency to ambush high price differences when there is a long current short period
In the main system - Arbitrage Template - Modify Template - Short borrowing currency triggers the spread, for example, fill in "0.2", which means that the currency will be borrowed when the spread is 0.2%. When the opening spread you set, such as 0.6%, you can trade For example, "short borrowing currency idle timeout" is set to 3500 seconds. If the currency does not reach the 0.6% price difference after 3500 seconds, the currency will be automatically returned.
 
(7) Coin borrowing/contract issuesWhat should I do if there is always a small amount of currency left after borrowing currency from Binance?
If you buy more in order to repay the interest, and if you sell automatically, you will often encounter a situation where the minimum transaction amount is insufficient, causing subsequent actions to get stuck, and the gain is not worth the loss. Holding a small tail sometimes results in profit and sometimes it results in loss. If the market is good, just hold it. If the market is bad, redeem it regularly with bnb. If you take it, you can offset the loan interest next time.
If you exchange for BNB, enter the Binance exchange, spot, and quickly convert small assets into BNB
Does the super arbitrage system require manual borrowing and returning of coins?
No, it runs fully automatically. Through the main system - modify the template - "short automatically transferred to the settlement currency", "short automatically transferred to the base currency", "short automatically returned the currency" and other functions.
How to understand the short leverage ratio
For example, the maximum allowed leverage of this currency is 10 times. If you set it to 2 times, the software will try to transfer 10,000 knives to a coin worth 20,000 knives. If the currency has enough credit, you can borrow 20,000 knives. For a currency that is, for example, 5 times, it often faces liquidation at seventeen or eight points.
 
If the contract or leverage is close to the liquidation price, how can we avoid it through automation?
We have a variety of risk prevention and control mechanisms. In addition to gradient hedging and gradient liquidation, we can set "Liquidation is approaching and reduce positions". When the currency is close to the liquidation price, "Liquidation is approaching (%)" (recommended setting 20% or more), "Extra redundancy (%) after liquidation is approaching and the position is reduced" (it is recommended to set it above 30%). Normally, it is 20% to reduce the position and the redundancy is 30%. That is, the margin can only continue to open within 2 times the leverage.
Spot mortgage lending and short selling, how to set up the system
Taking Binance as an example, you can directly select the spot when short selling, and the system will directly implement mortgage borrowing through the exchange.
 
For short spot mortgage lending, if the borrowing interest is 0.5% daily and the price difference is 1%, will the profit be eaten up in 2 days?
Generally speaking, the arbitrage spread may not last for 2 days. It may usually disappear within a few hours. Once the spread returns, the borrowed currency will be returned. The spot price is high and the contract price is low. In order to ensure that the spot price is basically consistent permanently, the exchange will charge funding fees from the short sellers and force the short sellers to buy and close their positions in order to increase the contract price, while the long sellers will earn funding fees at this time. If the price difference is maintained, you will basically incur additional funding fees.
Why can’t the futures arbitrage multiple be too high? Can increasing the contract multiple really double the income?
Your 10,000U, if it is a 1x contract, we will see how much the contract can open. 5,000U spot: 5,000 contract. If you double the contract, the spot is 6666, contract*2=3333*2=6666. From here, just look at the spot quantity. 3 times the contract, 7500, 9 times the contract, 9000U. I would like to ask you 6666U when you double the price, and 9,000U when you double the price. Is it a lot more?
But do you know how much the risk increases? So 2 or 3 times is enough. 2 times 6666, 5 times 8333, the risk has increased by more than 2 times, but the income has increased by 25% at most. Finally, calculate the extreme data. If you open a contract of 10,000 times, the spot price is 9999U, and you and 2 times of 6666, the income is 9999/6666=1.5 times. But your risk is infinite, and your position will be liquidated as soon as you open it!
Therefore, many people think that the difference between 1x and 10x contracts is that the income increases to 10x. That is completely wrong, because what you are playing is hedging, not a simple contract.
The principle of isolated margin when the current short period is long
Everyone knows that the spot is long and the future is short. If you buy the spot and go long, and the contract is short, then the spot is long and the future is long. If you want to go short on the spot, how do you go short?
The process is to automatically transfer the U in the spot to the isolated margin, and then borrow 200 TRB (for example). The status at this time is that there are 200 available coins and 200 have been borrowed. After the price difference is met, start leveraged shorting, which means selling the borrowed coins. For example, if you sell 20 coins, the contract will open 20 more coins at the same time! At this time, the status changes to 180 available coins, 200 borrowed coins, 20 isolated margin positions, and 20 contract positions!
If the price difference drops, the order opening conditions are no longer met, and the price difference starts to return, will the position be automatically cleared?
At this time, use the remaining U to buy 20 coins with isolated margin, pay back 20 first, sell the contract, and close your 20 long order! This price difference income is obtained.
Because you no longer have any positions, they have all been cleared, and you still owe 180, so you can directly use the 180 available coins to repay your loan. If for some reason, you only have 150 available coins left, and you still have 30 left. Automatically buy 30 pieces to make up 180, and then return them. Your position now changes to leverage 0 and contract 0. The leverage is automatically repaid, and all remaining U are automatically transferred to spot.
(8) Funding issuesCan cross-platform fund transfers be achieved through software?
Do you want the API to have withdrawal permissions?
How to realize automated fund transfer within the same platform
In the main system-arbitrage template-modify template-transfer profits to the opponent, for example, fill in "10%".
When you do futures arbitrage, the contract party makes a profit of 100 yuan, and 100*10%=10 is automatically transferred to the spot account.
Why is it easy to make mistakes with small funds? How to avoid profit reduction
Many newcomers think of just starting the test with 1000U or 2000U. The market is volatile and your ship is too small to sail to the sea. Have you seen the big-funded users in the group losing money? Because the ship is big, the coins can stay together for warmth. Even if 5 of the 30 coins are reversed, you will make a lot of money overall. But if you have a small amount of money and are unlucky to encounter these 5 coins, you will suffer a small loss. !
(9) Exchange/cross-platform issuesThe difference between same-platform and cross-platform arbitrage
The same platform refers to the arbitrage of trading pairs within an exchange, and the cross-platform refers to the arbitrage between two or more different platforms.
Advantages and Disadvantages of Same-Platform and Cross-Platform Arbitrage
The advantage of cross-platform futures hedging is that the price difference will be larger and the profit will be higher. The disadvantage is that if the funds become unilateral, you have to manually transfer them to maintain the balance of funds.
Within the same exchange, the super arbitrage system will automatically implement it.
Which exchanges should you choose for cross-platform arbitrage?
Mainly mainstream exchanges such as Binance, Bybit, Ouyi, and Gate.
How does the arbitrage system realize Ouyi’s spot currency borrowing task?
Ouyi directly open a short position with full margin, and the exchange will automatically help you borrow. If you cannot borrow, you will be prompted with an insufficient balance in English. Ouyi no longer has a currency borrowing interface. Cannot borrow in advance.
(10) Other issuesHow is the software fee calculated if the position is increased midway?
If a user buys 100,000 positions on January 1, 2023, 1 yuan/year
Six months later, on July 1, 2023, I want to upgrade to 1 million positions, 2 yuan/year
From July 1, 2023 to December 31, 2023, the fee = 2*6/12-1*6/12=0.5 yuan.
 
 
Congratulations, through the above learning, you have officially entered the door of cryptocurrency arbitrage.
In the future, please follow our pace! ! !


Public account: Xiaoyi Quantification.
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