Going back to the arbitrage basics
Triangular arbitrage strategy
Concept: To trade ONLY sets of pairs that are interchangeably linked.
We are deciding that the best strategy is to go back to basics and simply trade sets of pairs that can create a triangular pattern and make observations based on these settings, for all intents and purposes; our algorithm should be impartial as to which currency takes the most priority when it comes to trading.
That being said, we have configured our custom automated trading algorithm to trade only 3 pairs that are all connected, thus in future reports we will be better able to analyze what changes need to be made in the software, and make small adjustments from there. This is also a powerful approach at determining future trends in the market as overtrading of one pair will indicate that when a sudden change in volume occurs, that same currency will more than likely undergo a strong reversal.
In simple terms
What we mean by this approach is that we are as of the time of this post we are going back to the basics for two reasons:
- Endurance test: By going back to basics, we will observe if in fact our trading algorithm is fully capable of adapting to drastic changes in the market in both the long and short term.
- Calibration: As the markets have not been the same since 2018, we anticipate that certain adjustments be made.
What does this mean for your investment?
Your investments remain secure and will continue to operate in the nominal sense, that is; nothing changes in regards to new and existing investments, we are always innovating new and exciting strategies that take us to the next level and closely monitor the state of our pool for both security and performance.