StratCraft
Strategy Type

Arbitrage Trading Strategies

Cross-Market Price Discrepancy Capture

Arbitrage strategies exploit price discrepancies between markets, exchanges, or related instruments. These market-neutral strategies aim to capture risk-free profits through simultaneous buy and sell operations.

2 algorithms1 libraries
Algorithm Network

How arbitrage algorithms connect across libraries

🔄Arbitrage
🤖
Hummingbot2 algos
cross_exchange_market_makingadvanced
amm_arbadvanced
Trading Decision Pipeline

How arbitrage algorithms work together in a trading system

1
📊

Price Discovery

Multi-market monitoring

Real-time price feeds
Order book depth analysis
2
🧠

Spread Calculation

Profitability analysis

Price difference > threshold
Fee-adjusted profit
3
⚡

Simultaneous Execution

Atomic buy-sell

Leg 1: Buy on exchange A
Leg 2: Sell on exchange B
4
💰

Settlement

Position reconciliation

Trade confirmation
Balance reconciliation
5
🛡️

Risk Management

Execution risk control

Leg execution risk
Exchange downtime fallback
Algorithm Comparison

Compare arbitrage algorithms across key dimensions

Algorithm Comparison MatrixClick a column to expand details
Metric
cross_exchange_market_makingHummingbot
amm_arbHummingbot
🎯Complexity⭐⭐⭐⭐advanced⭐⭐⭐⭐advanced
📈Prediction TypeMixedMixed
⚡Training Speed⚡⚡⚡⚡
🎯Accuracy📊📊📊📊
💡Best ForGeneral purposeGeneral purpose
Complexity:

Hummingbot

cross_exchange_market_making
Hummingbot
Arbitrageadvanced

Cross-exchange arbitrage market making using price differences between two exchanges.

Speed⚡⚡
Accuracy📊📊📊
Key Parameters
min_profitability0.003Minimum profit threshold (0.3%)
amm_arb
Hummingbot
Arbitrageadvanced

Automated Market Maker arbitrage between DEX and CEX using on-chain/off-chain price differences.

Speed⚡⚡
Accuracy📊📊📊
Key Parameters
min_profitability0.01Minimum arbitrage profit (1%)
Related Strategy Types
Market Making →Momentum →All Algorithms →

Arbitrage Trading Strategies — Algorithm Reference

cross_exchange_market_making (Hummingbot)
Cross-exchange arbitrage market making using price differences between two exchanges. Key parameters: min_profitability (Minimum profit threshold (0.3%)). Source: https://github.com/hummingbot/hummingbot/tree/master/hummingbot/strategy/cross_exchange_market_making.
amm_arb (Hummingbot)
Automated Market Maker arbitrage between DEX and CEX using on-chain/off-chain price differences. Key parameters: min_profitability (Minimum arbitrage profit (1%)). Source: https://github.com/hummingbot/hummingbot/tree/master/hummingbot/strategy/amm_arb.