Future Gold
  • Future Gold
  • Future Gold
    • FGT Decentralized
    • Financial Inclusion
    • FGT Ecosystem
    • FGT Blockchain
    • How the Blockchain Works
  • BLOCKCHAIN STRUCTURE
    • FGT Algorithm
    • FGT Platform Structure
    • FGT Cloud Mining
    • FGT Digital Wallet
    • FGT Token Digital Wallet
    • Marketing Strategy
    • Marketing Team
  • AI Arbitrage Trade System
    • 1. Market Introduction
      • 1.1. The Origins
      • 1.2. Current Metrics
      • 1.3. Performance
      • 1.4. Projections
      • 1.5. Regulation
      • 1.7. Liquidity
      • 1.8 Volatility
      • 1.9 Spread
    • 2. Problem Description
    • 3. Arbitrage Trading
    • 4. Product Solution
      • 4.1. Future Gold Arbitrage Platform
      • 4.2. Beta Phase: Arbitrage Pairs Trading
      • 4.3. Stage 1: Arbitrage Pairs Trading
      • 4.4. Stage 2: Simultaneous
      • 4.5. Stage 3: Arbitrage Chain Trading
      • 4.6. Stage 4: Fully Decentralized
    • 5. Technical Details
      • 5.1. Blockchain
        • 5.1.1. Proof-of-Stake Consensus Mechanism
        • 5.1.2. Fully Decentralized
        • 5.1.3. Fastest Transaction Speeds in the Industry
        • 5.1.4. Low Transaction Costs
        • 5.1.5. Differences between Bitcoin and Future Gold
        • 5.1.6. Future Gold wallet
        • 5.1.7. Staking
        • 5.1.8. Staking Rewards
        • 5.1.9. Future Gold Blocks
      • 5.2. APIs of Cryptocurrency Exchanges
        • 5.2.1. APIs in General
        • 5.2.2. APIs in the World Wide Web
        • 5.2.3. APIs of Cryptocurrency Exchanges
        • 5.2.4. API Response Normalization
      • 5.3 Latency Reduction
        • 5.3.1. Why Latency Is a Problem
        • 5.3.2. Our Latency Approach
      • 5.4. Beta Phase: Prototype
        • 5.4.1. System Architecture
        • 5.4.2. Routing
        • 5.4.3. Latency
      • 5.5. Stage 1: Arbitrage Pairs Trading
        • 5.5.1. System Architecture
        • 5.5.2. Routing
        • 5.5.3. Latency
      • 5.6. Stage 2: Simultaneous Short-Long Strategy
        • 5.6.1. System Architecture
        • 5.6.2. Routing
        • 5.6.3. Latency
      • 5.7. Stage 3: Arbitrage Chain Trading
        • 5.7.1. System Architecture
        • 5.7.2. Routing
        • 5.7.3. Latency
      • 5.8 Stage 4: Fully Decentralized Arbitrage Trading
        • 5.8.1 System Architecture
        • 5.8.2 Routing
        • 5.8.3 Latency
    • 6. Conclusion
    • Task Center
      • How to get a task
      • How to complete the task
      • Task Center Frequently Asked Questions
      • Task center conditions and terms of use
  • BINANCE EDUCATION
    • Account Functions
      • How to Register on Binance App
      • How to Register on Binance with Mobile Number
      • How to Register on Binance by Email
      • How to Use Binance Referral Program
      • How to Disable My Account
      • How to Unlock My Account on Binance App
      • How to Unlock an Account
      • How to Convert Small Account Balance to BNB
      • How to Manage Sub-Account Functions and Frequently Asked Questions
      • How to Reset Your Binance Account Password
      • How to Generate Binance Account Statements
    • Identity Verification
      • How to Complete Identity Verification
      • How to Apply for Corporate Account
    • Two-factor Authentication
      • How to Enable Google Authentication (2FA) and Frequently Asked Questions
      • How to Solve 2FA Code Error
      • How to Reset Google Authentication on Binance App
      • How to Reset Google Authentication
      • How to Reset SMS Authentication on Binance App
      • How to Reset SMS Authentication
      • Supported SMS countries
      • Why Can’t I Receive SMS Verification Codes
      • How to Use YubiKey for Two-factor Authentication (2FA) on Binance
      • How to delete YubiKey for Two-factor Authentication (2FA)
      • How to Enable Binance Authenticator
    • Email Issues
      • How to Change Account Email
      • Why Can’t I Receive Emails from Binance
      • How to Whitelist Binance Emails
    • Referral & Affiliates
      • How to Redeem a Futures Bonus Voucher/Cash Voucher
      • How to Redeem Savings Trial Fund
      • How to Redeem a VIP Upgrade Voucher
      • Cashback Voucher Terms and Conditions
      • How to Redeem a Cashback Voucher
      • How to Redeem a Margin 0% Interest Voucher
      • How to Redeem a Voucher Code
    • Wallets
      • How to Check Balance and Transfer Funds on Wallet Overview
      • How to Connect Binance Extension Wallet (BEW) via Wallet Direct
      • Frequently Asked Questions on Binance App Funding Wallet Migration
      • Frequently Asked Questions on P2P Wallet to Funding Wallet Migration
    • Task Center
      • How to get a task
      • How to complete the task
      • Task Center Frequently Asked Questions
      • Task center conditions and terms of use
  • Created Wallet Address
    • Metamask Wallet Address
    • Connecting MetaMask to BNB Smart Chain
    • Add BUSD token in Metamask
    • Trust Wallet Address
      • Protect Your Crypto Wallet
      • Recovery Phrase or Private Key
  • FUTURE GOLD ACADEMY
    • IDO FUTURE GOLD FGT
      • Daily Gold Farms Future Interest
      • Daily Gold Farms Fixed Interest
      • Daily Gold Farms Compound Interest
    • Telegram Chat Id
    • How To Buy FGT
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  1. AI Arbitrage Trade System

2. Problem Description

Along with the new disruptive technological opportunities, also new issues are also occurring and have to be taken into account. Because of the lack of liquidity for certain pairs, price manipulations and the high amount of non-professional traders, the cryptomarket generally can be declared as extremely volatile. This leads to inefficiencies, where prices are highly varying between exchanges, especially when analyzing pair chains. Among various factors, this is one of the most important reasons why institutional investors are still worried about entering the crypto area, which hinders the technology from evolving. In order to stabilize these inefficiencies and benefit from potential arbitrage possibilities a lot of technical solutions and administrative workflows have to be implemented.

The complex web of exchanges, which includes different means of funding, KYC policies, API results and interfaces, increases the administrative and technical effort to set up an appropriate arbitrage system. Furthermore, users have to open accounts on multiple exchanges in order to benefit from price spreads. For a fully automated arbitrage trading setup various factors have to be considered e.g. transaction time, transaction fees, authenticity of orders in their books, volume, withdrawal limits, etc. This data is provided by exchanges and Future Gold Arbitrage obtains it through their custom Application Programming Interfaces (APIs). However, currently this data is not normalized and standardized. Therefore, working with market data streams from different origins requires specific processing and reformatting of the data into standardized data structures, in order to be able to perform automated analysis of best pricings and liquidities per exchange, to spot truly profitable arbitrage possibilities. Moreover, the problem of latency needs to be tackled, as time is a key factor when it comes to arbitrage trading. Fast internet connections as well as physical proximity are required, so that the necessary speed can be achieved.

Setting up the infrastructure for an individual is very costly, time consuming and needs a lot of expertise in financial markets as well as information technology systems. Furthermore, a lot of capital is needed to ensure the liquidity on relevant exchanges, in order to be able to act as fast as possible. Therefore, Future Gold Arbitrage is offering its services to allow individuals of any kind to join pools for profitable arbitrage trading. At the same time, through aggregation of capital, Future Gold Arbitrage will be able to invest in and improve the infrastructure, and keep sufficient funds on relevant exchanges at all times, so that the most profitable arbitrage trading opportunities can be realized

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Last updated 1 year ago