Haasbot's Arbitrage Bot is a bot type that, when configured, can monitor price differences from currency pairs, in relation to a Base Currency, to generate a profit when the user defined profit threshold is reached. The Arbitrage Bot works well on currency pairs and exchanges that have high volume and multiple currency pairs.
How it Works
The Arbitrage Bot works by allowing a user to choose a Base Currency on a specific exchange, for which any profits will be generated in. In addition to that, the user is then prompted to change the profit threshold as a percentage. Once the user has chosen their desired profit threshold, the user can set up alternative currencies to monitor for price differences. When the Arbitrage Bot is activated, the bot will the monitor those currencies for price differences and execute trades when they reach the profit threshold. Here is an illustration of how the Arbitrage Bot works for the Base Currency Bitcoin on an exchange like Cryptsy.
The Arbitrage Bot is best used with exchanges that have native Market Orders support. Not all the exchanges support native Market Orders and exchanges without native Market order support may experience that the Market order is simulated. The details as to whether or not an exchange API supports native Market Orders is display at the exchange API setup page.
Arbitrage between different exchange APIs or exchanges is NOT supported because this software does not support depositing or withdrawing coins due to security reasons.