Unified LTC-Tether Real-time Arbitrage //

A Spatial Algorithm

Overview

ULTRA (Unified LTC-Tether Real-time Arbitrage) is the foundational algorithmic trading strategy designed to capitalize on price discrepancies between two assets on cryptocurrency exchanges.

Specifically, ULTRA focuses on the arbitrage opportunities between Litecoin (LTC) and Tether (USDT) across 48 various exchanges.

ULTRA // Documentation

  1. Start with an initial amount of LTC in a DEX wallet. This is our LTC_start.
  2. In real-time, we will monitor 48 exchanges to identify the exchange (eS1) where ‘1 LTC’ is worth the ‘most’ USDT.
  3. We will then convert all of our LTC_start to USDT at ‘eS1’. The amount of USDT we receive will be USDT_max.
  4. In real-time, we will monitor the same 48 exchanges to identify the exchange (eS2) where ‘1 LTC’ is worth the ‘least’ USDT (or equivalently, where we can get the most LTC for our USDT).
  5. Convert all of our USDT_max back to LTC at eS2.
  6. The amount of LTC we receive is LTC_end.
  7. Compare LTC_end with LTC_start to determine profitability:
    1. If LTC_end > LTC_start: The route is profitable. Execute the trade.
    2. If LTC_end = LTC_start: The route is not profitable. Disregard this route.
    3. If LTC_end < LTC_start: The route is not profitable. Disregard this route.

Context within Broader Strategy

It's crucial to understand that ULTRA is just one piece of a larger, more comprehensive algorithmic trading ecosystem. Here's how ULTRA fits into the bigger picture:

Base Algorithm: ULTRA serves as the base or foundational algorithm for simple arbitrage. In algorithmic trading terminology, this technique is often referred to as plain arbitrage or spatial arbitrage. Step One: ULTRA represents the first step in our multi-faceted approach to cryptocurrency arbitrage. It's designed to capture the most straightforward arbitrage opportunities, providing a solid foundation for more complex strategies. (Spatial Arbitrage) Spatial Template: While initially we utilize ULTRA to focus on LTC/USDT pairs, similarly this same algorithm can be utilized across various cryptocurrency pairs. Foundational Building Block: The insights and data gathered from ULTRA will inform more sophisticated trading strategies. For example, the price discrepancies identified by ULTRA will be inputs for predictive models and more complex multi-step arbitrage algorithms within our ecosystem. Real-time Monitoring: As the name suggests, ULTRA operates in real-time, continuously monitoring exchanges for opportunities. This real-time data is valuable for the other algorithms and decision-making processes within the broader ecosystem of arbitrage algorithms we will implement.

Additional Algorithms

While ULTRA provides a solid starting point, there are various, more advanced, algorithms in our suite that will be further documented in the coming days: