How to choose your Crypto Arbitrage Trading Bot

Photo by M. B. M. on Unsplash

Meet Johnny

Johnny had spent years trading the crypto market, he has heard of how volatile the market is, and has heard of many people getting rich from it. But after years of failing, he is ready to throw in the towel. He feels that he is not cut out for trading. However, he recently came across an article on trading algorithms or trading bots, that can help automate his trades. All he needs to do is to turn it on, and it will start making money for him. He did a quick search online and found so many of such bots claiming to be able to make tons of money. So how can we identify the right one for Johnny?

First, we must understand the crypto-currency market in detail.

Multiple exchanges

It is estimated that there are more than 1000 exchanges in the cryptocurrency market. As some coins are only traded on certain exchanges, this means that it is impossible for people to be able to identify all the best trading opportunities at any given time. Furthermore, exchanges are limited to certain regulations, which means that not everyone can register an account at just about any exchange!

A huge number of coins

There are more than 5000 cryptocurrencies in the world, and they are all located in different exchanges. What this means is, while there are plenty of profitable trading opportunities in the market, it is literally impossible to capture them all.

Bitcoin is the Father of all alt-coins

Many cryptocurrency price movements are somewhat tied to Bitcoin (BTC) prices. This means that when BTC starts dropping in prices, most of the crypto market will follow suit.

Volatility, volatility, and volatility

The cryptocurrency market is perhaps the most volatile market. Compared to traditional markets like the stock market and the foreign exchange market, daily price moves in crypto markets are considerably larger. Most cryptocurrency prices experience daily volatility of 3–10% and sometimes up to 100%. Yes, you heard it right. 100%. For the risk lovers, this is extremely attractive due to the potentially huge profits that can be made!

Knowing these, let us examine what makes a good trading bot.


  • 24/7
  • Integrated with notable cryptocurrency exchanges
  • Machine learning + Artificial Intelligence
  • Offers unlimited trading positioning
  • Resilient to Bitcoin movements


  • Anyone with any budget (Yes, even people with a smaller budget can benefit)
  • Anyone who wants to beat the market using an automation tool
  • Beginners
  • People who do not have time to trade

The cryptocurrency market is the only financial market that is open 24/7. Thus, we would seek a trading bot that runs all the time to capture every profitable opportunity. Additionally, trading bots that are ideally placed in notable exchanges will be able to help us capture a vast majority of the cryptocurrencies available in the market. Moreover, by placing a trading bot in the exchanges’ data server, the bot can receive data and execute trades on profitable opportunities in the matter of nanoseconds.

Most trading bots often fail when bitcoin causes huge price movements across the entire market. Thus, having a trading bot that can still make profitable trades even during market swings is advantageous, e.g., Arbitrage trading bots

Lastly, the key to a successful trading bot should be one that combines Artificial Intelligence and Machine Learning to keep improving. This is because the market is always changing. Therefore a strategy that has worked in the past may not continue doing so in the near future. As such, only by continuously self-improving will a trading bot be successful in the long run.

Final thoughts

Automated trading in cryptocurrency markets can be made a lot easier and more profitable than traditional markets if you can figure out the right tool to use. As prices in crypto markets may face extreme price volatility, it is vital to find a trading bot that can capture profits during up- and down-swings in the market. While trading bots with sound arbitrage strategies can achieve the above, it would be wise to seek for one that is able to continuously adapt as markets change over time. To achieve this, having Artificial Intelligence and Machine Learning capabilities are essential.

Alpha ROC understands the importance of these requirements. Thus, Alpha ROC has since developed the above features across its various arbitrage strategies to be used during both a bull and bear market, providing the capabilities required for a great trading algorithm.