Harness the shifts, lock in the rewards

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What's a smart arbitrage bot?

Smart arbitrage is a trading strategy aimed at achieving more stable outcomes by balancing out the ups and downs of the market.

Imagine you buy Solana (SOL) on the spot market, and simultaneously sell an equivalent amount of SOL futures contracts, betting that the price will drop. By holding both positions, any gains or losses from one side are offset by the other, effectively reducing your overall risk. This strategy not only helps to stabilize your returns, but also allows you to earn consistent funding fees.

About this bot

This strategy is particularly effective with popular cryptocurrencies that typically have long-term positive funding rates, allowing for consistent returns even amidst price fluctuations.

It's well-suited for those seeking stable results in a volatile market, without the burden of actively managing trades.

Case study
Start

Imagine you're Amy. On September 28, the price of SOL was 158.20 USDT, with a funding rate of 0.009%.

Amy invested 10,000 USDT in a SOL/USDT smart arbitrage product. It automatically bought SOL on the spot market while simultaneously shorting it in the futures market, allowing her to capitalize on both sides of the trade.

Market movements

Over the next 4 days, the funding rate remained positive, settling every 8 hours. This enabled Amy to earn funding fees 12 times. During this period, the rate peaked at 0.021%.

On October 2, the rate began to decline and eventually turned negative.

Payoff

By October 2, the price of SOL had dropped to 144.50 USDT. At this point, Amy decided to stop the bot. Her total assets had grown to 10,050 USDT, including funding fees and gains from her short futures position, which successfully offset the decline in the spot price of SOL. As a result, her APR was 45.4%.

In comparison, had Amy simply bought SOL on the spot market, her APR would have been -9%. Thanks to the smart arbitrage strategy, Amy achieved consistent and profitable outcomes even during price declines.

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Bot setup

Zero profit sharing

Zero management fees

1.Each bot already has default settings. Simply enter how much you want to trade to create your bot.
2.These settings are either sourced from carefully-selected traders or generated by AI using backtested data. Note that this does not constitute any investment advice, and profits and losses are your own responsibility.
3.You can edit the settings to match your own trading strategy.
4.You can learn more about bot runtimes and risk ratings in our .

FAQ

Are there extra charges when using this bot?

This bot doesn’t charge profit share like copy trading, and doesn’t charge any management fees. However, for ordinary transactions that occur when buying low and selling high, the platform will charge transaction fees, and the specific rate is consistent with manual trading.

Will I always get high returns?

The historical performance of a bot is not a guarantee of future returns. Future returns from this bot may be higher or lower than historical backtested results, as market conditions and other factors affect actual performance.

Where can I view the bot’s settings?

You can view the bot’s settings in the order chart of each bot, and also under “Bot details” when creating a bot. If any of the settings don’t align with your strategy or risk tolerance, you can manually edit them.

What are the advantages of smart arbitrage bots?

1.Lower risk: Smart arbitrage bots capitalize on price discrepancies between spot and futures markets, making them less susceptible to market fluctuations and more stable. By simultaneously holding opposite positions in the spot and futures markets, this strategy effectively reduces risk through hedging.
2.Lower trading costs: Unlike high-frequency trading, a smart arbitrage bot only executes trades during significant funding rate changes, which minimizes transaction fees and slippage costs.