The Arbiteo System
Frequently Asked Questions
How big is the team that operates the system? Are its members software developers, traders; what is their experience?
The team consists of 12–14 persons who have been active in the cryptocurrency sector for over 6 years now, and on the financial market (trading in the forex and other markets) for more than ten years.
In this team we have created cryptoins.com – one of the first bitcoin exchange offices in Poland. (In 2017 it got sold and at present it is no longer in use – the new owner has put our software to use in another project).
We have developed and successfully run a system for cryptocurrency payments, bitbe.co. At present, we support payments in some 200 online shops. We are also in charge of several closed projects in the area of cryptocurrencies/blockchain.
As regards all technical aspects, they are the responsibility of a competent team of programmers, the team’s leaders having an experience of more than 10 years in software development. We also collaborate with experts responsible for systems’ security, audits, test.
How often are bot strategies verified or changed; how often is the bot set up?
The bot operates in real time, analysing data from thousands of markets several times a second. In our system, several independent algorithms for profit search are used, each of themsearches for a way to conduct a transaction with a profit in a different way. Some of them are algorithms that are known to the general public, but the main strength of the system are our original algorithms.
Our bot is able to execute deals in a fully automated way, i.e. without user’s interference. Of course, it is also possible to switch the bot to the manual mode so that deals are executed manually – without the use of full automation.
There are 3 strategies that are functioning in the system; they are fully elaborated and do not require modification. The results of their operation is verified automatically by the system several times a day. (The factors checked include the profits earned, time of communication with the exchanges and many others). Errors (if any) are rectified on an ongoing basis, but because we have been developing these strategies for several years now, issues are basically no longer encountered.
We are developing new strategies and we are going to add at least one every three months.
Is the bot set-up difficult for a beginner? How many parameters does it have?
There are just several parameters and they are the basic configuration data:
- minimum acceptable profit from a single transaction (e.g. 1%);
- minimum/maximum value of a single transaction;
- the scope of enabled exchanges and currency pairs on which we want to trade.
The set-up itself is very simple and intuitive. We provide full support at this stage.
How does protection of clients’ money work and where is the money kept?
The user does not transfer any funds directly to the system. All funds of the clients are kept onthe accounts of crypto exchanges of the users and are under their full control. The system executes deals directly on user accounts via API keys; the user generates such keys on each ofthe exchanges and sets them up on its account in the Arbiteo system.
Depending on the user’s preferences, the API keys can have permission to execute transfers ornot. The system will be fully functional also with the API keys without the granted permissionfor transfers (transferring of funds), however, in such case all movements between exchanges would have to be carried out manually by the user. If the API keys do have permission to execute transfers – the user will be able to execute transfers between the exchanges from the level of the Arbiteo system or, upon selecting the relevant option, “order” the system to execute transfers automatically, so as to maximize the number of executed deals.
The system has been designed to ensure that all transfers are made to user-defined addresses only, which means that it is not possible to make a transfer to any address.
Does the bot take account of trading fees on exchanges?
Not all exchanges welcome bots (e.g. Bittrex, Poloniex, Kraken, Bitfinex, EXMO used to treat them quite harshly). How was this problem solved?
For many years now we have been creating heavy duty trading systems – a cryptocurrency exchange office, payment system, trading systems.
The volume of our trading on exchanges is several hundred million USD and no exchange hasever had a problem with that, just the opposite – thanks to the large volumes, we work closely with many exchanges, and thus we are given preferential treatment – faster access to the API or non-public functionalities.
What are the channels for the distribution of the system/bot application?
Until this day, the arbitrage system we have been creating for about 3 years has functioned as an internal one and has not been made available to anyone.
However, when expanding the system (from 15 exchanges to some 120, from a dozen or so currency pairs to several hundred), we decided to make it available to third-party entities. Such a big number of markets creates hundreds of potentially profitable deals at the same time, and such numbers are no longer possible to take advantage of for a single entity.
For the time being, we are systematically “letting in” private investors as system users, so the distribution is limited to our closest partners. We are striving, however, to fully disseminate our system and we are going to undertake extensive marketing activities to that end. This will be made easier by the fact that online marketing is where we have come from – for more than a dozen years we have been running several advertising (online marketing) agencies.
Why no mention of Arbiteo can be found on the Internet?
It is our conscious decision. Our system has not been promoted anywhere, thence the total lack of information on the Web. As already mentioned, at present it is a closed system, with access limited to a group of private investors.
If you are interested, we can arrange to meet with you or present the system online.
Can I see your system in a demo version?
Yes, a demo version has been prepared and we can give you access to it.
This version allows to simulate the course of dealing so that one can get to know the system’scapabilities.
To what extent does execution of arbitrage deals limit the risk of loss of funds?
Our system analyses the exchanges in real time and it starts to execute deals only if it has detected a specified profit. The approximate result of the operation is known before it starts – the system does not take risk.
Of course, it can happen that while a deal is being executed, the price of given assets will change and the system will not be able to finish the transaction at the original price. In such case our system looks for the possibility to finish the cycle without loss and in most cases it succeeds.
The system has executed hundreds of thousands of transactions, and those ending with a loss account for less than 0.1% of their total number. The overall outcome has always been positive. This is what makes our arbitrage system stand out from most systems on the market.Our system is not speculative, transactions are only executed where it is possible to close the cycle with a profit at a given moment. (The entire cycle of purchase/sale gets closed within several / less than twenty seconds, in a fully automatic manner).
Who can use the system?
Which exchanges shall I start trading on? What markets shall I trade on?
Does the system work on crypto-crypto markets, or only on crypto-FIAT markets?
Our system functions on all markets available on the exchanges. What market a user will be able to execute deals on depends on what funds he holds and whether (and where) he holds bank accounts.
While cryptocurrency transfers are generally cheap and fast, bank transfers vary depending onmany factors (e.g. bank’s location, access to the SEPA/Swift area). That is why it is vital to select the exchanges and markets on which the terms for the user making payments/withdrawals are good.
At a certain time we held, for example, bank accounts in several major Polish banks in which also the exchanges held accounts. Thanks to this transfers were nearly immediate and we wereable to make transactions using the same funds several times a day. This is an ideal situation, but also one of the reasons why we are making the system available to third parties. Globally we are not able to operate as efficiently as on the local market. We will not achieve such efficiency in fund management e.g. on Asian or American markets as the users who live there,who have access to the local infrastructure.
The number of exchanges and markets for arbitrage is so immense that even with thousands of users in the system, each of them will find some space for himself and those markets on which he will operate the most conveniently or beneficially.