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
Powered by GitBook
On this page
  1. AI Arbitrage Trade System
  2. 4. Product Solution

4.4. Stage 2: Simultaneous

Previous4.3. Stage 1: Arbitrage Pairs TradingNext4.5. Stage 3: Arbitrage Chain Trading

Last updated 1 year ago

Another arbitrage strategy Future Gold Arbitrage is using is the simultaneous Short-Long Strategy. Here we analyzed the spreads between exchanges and monitored on what exchanges the automated bots are having the most effect on arbitrage. Through this analysis to align the existing algorithm to the Short-Long Strategy in order to be able to execute more arbitrage opportunities. The following example illustrates how this strategy is executed:

When the price spread between two exchanges is high enough (first vertical line), the algorithm is selling BTC at the higher price (blue line=Bitstamp) and buying BTC at the same time, with the same amount for a lower price (red line=Bitfinex). Then the system waits until the price spread between those exchanges is minimal and simultaneously executes the same trades reversed (selling at Bitstamp and buying on Bitfinex). So the risk-free arbitrage benefit is the difference between the first and the second spread. Furthermore, it is possible to use the same strategy with futures which is the additional feature. With futures it is currently working for Bitmex and Bitfinex