Arbitrage Algo

There are three types of arbitrage in crypto

1. Crypto-Crypto
2. Crypto-Fiat
3. Crypto-Futures

The first type of arbitrage is the most lucrative yield-wise, although very difficult to model and implement.

The second type, crypto-fiat, is the most problematic to implement, due to banking constraints that exist today in the crypto world.

Our team has focused on the third type of arbitrage - crypto-futures - and has achieved significant results already. Our algo was developed by our in-house financial engineers with over 20+ years experience, and deployed on Nov, 01, 2017. Since then, our algo had zero loss-making trades. We gave it a name - Marvel.

"Marvel constantly outperforms the Bitcoin - and we are proud of it"

Strategy:

Marvel works between Bitfinex and Bitmex, and its main objective is to benefit from the contango between the underlying BTC and the futures contracts on BTC. Bitmex is the best liquidity provider for the BTC futures market in the world, and is critical to the current strategy. Bitfinex can be replaced with almost any other exchange, however we find it to be liquid enough and stable enough for current needs.

Marvel trades XBT/USD against closest most-liquid futures contract, which, at the time of writing, is XBTM18. Marvel also trades the calendar spread, between the closest futures contract e.g.XBTM18 against the September XBTU18 contract

Marvel is fully automatic, except rebalancing of BTC, which is performed manually after every cycle of the trade, which currently ranges between 4 to 7 days. Marvel does not sleep, and feeds off electricity and internet (results pay for the bills), and is 24/7/365. Marvel likes to make money, specifically, it likes to make Bitcoin. Base currency of the strategy is BTC, therefore Marvel does not have fiat exposure, and doesn’t care what the price of BTC is. Marvel is delta-neutral. Marvel is amazing. If you want to meet Marvel - drop us a note.

Work in Progress:

Marvel’s mother, Enigma, is pregnant with another algo - yet to be named. We have big plans for it - it will be a crypto-crypto multi-chain strategy, whereby market inefficiencies across all top 40 exchanges will be utilised on a spectre of top 50 coins by mcap, to provide cross-chain non-stop multi-currency arbitrage operations. We are looking for talented individuals to join the team. If you feel you are a genius, a maths whizz, a chess champion, a gifted financial engineer, or just someone who came across the philosopher’s stone - drop us a note, great things await you.

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