Hops-Bot Description
Last updated
Last updated
Hops-Bot is an automated system designed to identify and execute trading opportunities involving three or more cryptocurrencies, earning profits from price differences. This process is called arbitrage.
Arbitrage involves buying and selling assets to profit from differences in their prices.
Our strategy focuses on simultaneously buying and selling cryptocurrencies to capture profit from price discrepancies across markets. This approach leverages market inefficiencies to generate returns.
Hops-Bot takes into account all trading fees, automatically identifies profitable opportunities, and executes trades to ensure a positive outcome.
Hops-Bot employs the triangular arbitrage strategy.
Triangular arbitrage is a sophisticated trading approach that exploits price mismatches among three assets. In this method, the bot sequentially exchanges the first asset for the second, the second for the third, and the third back to the first, profiting from the differences in their exchange rates.
Connecting to the Exchange: To get started, you need to link the bot to your exchange account using API keys.
Configuration: Next, set the parameters, choose the assets for trading, and start the bot.
Identifying Arbitrage Opportunities: Once activated, Hops-Bot analyzes the assets on the exchange to find arbitrage opportunities. Upon detecting a positive spread, it selects the optimal strategy for placing orders based on current market conditions and your settings, then executes the arbitrage.
Completing the Arbitrage Cycle: If the arbitrage operation is successful, the bot completes the cycle. In cases where market conditions change negatively during the operation, the bot will aim to minimize losses by closing the arbitrage early. Note that negative arbitrage trades are also possible.
Analysis and Strategy Adjustment: Based on the bot's performance, you can adjust the parameters and test new strategies to enhance efficiency.
