Huobi Bot Up $14 - 3.82% in <24 Hours

Even more expected tomorrow ;) read on...

This bot has been running from about 0% on the day since I doubled leverage ~13 hours ago…

Meaning the results from tomorrow will yield more ;)

The stats will restart for a new day in about 1-3 hours, but we’ve already comp’d the entire sunk cost of dev and our 7day is positive returns :D

Video Proof

Make Money Online! [LIVE Bitcoin and Crypto Arbitrage Chart] Huobi DM Futures Algotrader Winnings!

Cats unplugged my video card's shorted PSU during last stream.. since then we're up another $7 ~2% or so (old data, now 3+%)

Want to run it? Follow directions in the previous post!

https://hacks.substack.com/p/huobi-trader-live-now-we-watch

Want more details?

Pitch for Cash n Carry Futures Arbitrage on Huobi

(vs FTX)

  1. The coins available in both swaps and futures on Huobi are much higher liquidity - allowing less risk of drawdown

  2. The coins available have more trading pairs, in the sense of futures vs hedge, where FTX usually has 1 of each - creating more % opportunity

  3. The coins available have much less volatility in the sense of divergence among futs and perps, being less esoteric coins (vs., say, COMP or CREAM on FTX) - allowing less risk of drawdown

  4. The above combinations of less risk allow us the opportunity to use a higher default leverage - currently set at 5x per fut and swap, or 10x total - vs the 2.5x we were using on FTX

Process

  1. The bot identifies which future vs swap prices exist above a threshold in APY

  2. Then, determines which opportunities are over the average of opportunities above that threshold

  3. Out of this list, it calculates the % of each opportunity out of the total %s

  4. This creates a list, like BTC 20% ETC 30% ETH 50%

  5. It allocates the equity of the account accordingly, at leverage

  6. Over time, two things can happen

    1. The price can converge between future and hedge - realizing gains, and lessening the relative % opportunity, so we’re closing position % relative to the realized gains

    2. The price can diverge between future and hedge - realizing temporary losses, and increasing the relative % opportunity, so we’re putting more of our equity vs the other opportunities - to realize these gains later

  7. Whatever the case above, the prices will absolutely converge and become equal over time - as the properties of the futures contracts dictate that they must equal the underlying on expiry

  8. This certainty means that our adjusting balance over time will capitalize on the % APYs available - over and over again, sometimes in the length of 30 minutes in and out

    1. Proof:

  1. this should be 9? Rinse, wash, repeat.