Today is another day of understanding the ins and outs of how I made those small sats profit from yesterday. I was browsing through the DEX UI some more and playing around with he values to see what the maximum possibility is to make an arb trade. Thats when I noticed this tBTC/WBTC pool is only 2K USD in size. This means that all trades that are made have to be lower than that sum. It also have to be lower than the sum of the last trade which brought it off balance.

I will buy more BTC and this time I will have a balance on both sides and be more prepared tomorrow. For a 2K pool having several hundred on both sides will be a secure beginning. I saw this because I did not have tokens on one of the sides so I put the side I did have on lending a borrowed the other side to trade and arb the difference. Again this trade only profited several hundred sats but the principles if understood correctly can be transposed to other synthetic pairs such as USDC/USDT.

I then came to think about how many other must be doing this. I look at the analitics page for USDC/USDT pairs and see the have much more tx volume.

Next on my mind are bots. I found two interesting ones. One is for Solana using the Jito strategy which is to back run a trade immediatly after by observing the mempool. this github wrote that it requires running ones own node and other over heads.

https://github.com/jito-labs/mev-bot

Another one was from trad fi and this github spoke about a book titled Quantitative Trading: How to Build Your Own Algorithmic Trading Business. This might be outdated as it applies mathematics and CS to a tradfi setting, as opposed to applying finance and business strategy to cryptocurrency which is what I consider Defi.

https://github.com/tibkiss/huba-v1?tab=readme-ov-file

Anyway I should really get into reading about trading.

Today is another day of understanding the ins and outs of how I made those small sats profit from yesterday. I was browsing through the DEX UI some more and playing around with he values to see what the maximum possibility is to make an arb trade. Thats when I noticed this tBTC/WBTC pool is only 2K USD in size. This means that all trades that are made have to be lower than that sum. It also have to be lower than the sum of the last trade which brought it off balance.

I will buy more BTC and this time I will have a balance on both sides and be more prepared tomorrow. For a 2K pool having several hundred on both sides will be a secure beginning. I saw this because I did not have tokens on one of the sides so I put the side I did have on lending a borrowed the other side to trade and arb the difference. Again this trade only profited several hundred sats but the principles if understood correctly can be transposed to other synthetic pairs such as USDC/USDT.

I then came to think about how many other must be doing this. I look at the analitics page for USDC/USDT pairs and see the have much more tx volume.

Next on my mind are bots. I found two interesting ones. One is for Solana using the Jito strategy which is to back run a trade immediatly after by observing the mempool. this github wrote that it requires running ones own node and other over heads.

https://github.com/jito-labs/mev-bot

Another one was from trad fi and this github spoke about a book titled Quantitative Trading: How to Build Your Own Algorithmic Trading Business. This might be outdated as it applies mathematics and CS to a tradfi setting, as opposed to applying finance and business strategy to cryptocurrency which is what I consider Defi.

https://github.com/tibkiss/huba-v1?tab=readme-ov-file

Anyway I should really get into reading about trading.