The Arbitrage bot has many features you could use, which could also confuse how it works. Therefore, we have made a checklist that will help you with the configuration of both arbitrage types Cryptohopper offers; Exchange Arbitrage and Market Arbitrage.
Subscriptions The first thing you have to check is whether you are using the right subscription type for the type of Arbitrage you want to use.
- The Adventure Hopper allows you to do Exchange Arbitrage
- The Hero Hopper will enable you to do Market Arbitrage and Exchange Arbitrage.
You need to assign your Hopper subscriptions to the Hopper template used for Arbitrage.
The next thing you have to look at is whether the Hopper is enabled. The first toggle is about updating all Hopper information, such as the number of coins and the total value of your portfolio. The second toggle must be enabled if you want to use Exchange Arbitrage. The last toggle must be enabled if you're going to use Market Arbitrage.
API Keys The Arbitrage bot is the bot type that needs the most API Keys to function. Therefore, it is essential to be sure that the API Keys have been configured correctly. We have an extended Documentation page with Tutorials of all integrated exchanges. We highly recommend you to follow these Tutorials as the setup differs per exchange. For example, on Kraken you should create 2 API Keys and API Secrets, while on Bitpanda Pro, you only need 1 API Secret. Other things that might prevent you from seeing your funds; Auto-fill in your browser, password managers, or browser extensions.
If you don't see error messages regarding your API Keys in your Hopper output, then your Hopper is connected to your exchange. You can double-check the connection by selecting the exchange you want to check on your Dashboard to see whether there are amounts shown. If you do see error messages, an explanation tells you what you have done incorrectly.
What needs special attention when using the Arbitrage bot is the list of assets you have on the connected exchanges. The requirements are different between the arbitrage types, as can be seen below.
Exchange Arbitrage: When using the Exchange Arbitrage bot, it is necessary to own funds of the coins you would like to trade on both exchanges. If you would like to arbitrage between KuCoin and Bitvavo with as Base currency BTC and selected coins ADA, AION, and ENJ, it will look like this:
KuCoin Bitvavo BTC 0.5 BTC 0.5 ADA 20000 ADA 20000 AION 15000 AION 15000 ENJ 18000 ENJ 18000
Market Arbitrage: When using Market Arbitrage, it is recommended to own at least 2 Base currencies and multiple other currencies. Since Market Arbitrage functions on one exchange, you don't have to hold funds on other exchanges. However, Market Arbitrage does work on multiple exchanges, it will execute trades where the profits are the highest.
The Base config is the brain of your Hopper. Therefore, you must make sure to configure it correctly. The first thing you have to do is filling the amounts in the Coins and amounts tab.
Cryptohopper recommends using a Percentage sell amount between 5 and 20% to ensure there will always be enough funds to perform another trade for the same trading pair. By using smaller sell amounts, you increase the chances that the Hopper will continue trading, and it helps to balance out the amount you own on both exchanges. In this case, you don't have to move funds manually between exchanges. It happens with Exchange Arbitrage that one exchange is always showing cheaper prices while another showing higher prices. When this happens, you will need to move funds manually. It's not possible to use 100% as a configured sell amount.
Also, make sure to select a minimum amount per market (Base currency).
When selecting trading pairs that are allowed to be traded by the Hopper for Exchange and Market Arbitrage, select currencies with enough liquidity and still offer arbitrage opportunities. When currencies are too liquid, there is a high chance that you don't see any opportunities. On the other hand, when currencies are not liquid at all, trades won't be fully executed and you could be stuck with bags. The value of the currencies selected on the exchange will differ in value too. Therefore, know which coins you are trading.
It sometimes occurs that the same currency has two different abbreviations/symbols on different exchanges. In these cases, please contact support at email@example.com.
The Hopper output will provide you with all information on the Arbitrage bot. Meaning that it will show you what the issue is when an order can't be placed, how you can fix the problem, and more information regarding the base config settings the Hopper checks. In the screenshot, you can see that there are not enough funds and that this is why the order can't be created.
If there is anything unclear to you about the Hopper output, please contact support at firstname.lastname@example.org.