Different modes
Last updated
Last updated
There are three different modes:
Fake money
Classic
Delta-neutral
As you understood on How it works at start, the bot buy the assets to be ready to take opportunities. But what happens if the general price of that asset move during a session?
Well, you can loose or make a profit when the session ends, because it sells back to the quote-asset.
To avoid that and be delta-neutral, you can simply create a short order when you start the bot on the same pair with the same amount the bot will buy. If you choose 1000 as balance for the bot, the bot will buy 500 quote-asset in total; you then need to create a short order on the same pair with an amount of 500.
You can also put Kucoin futures API credentials in exchange_config.py, and choose the delta-neutral mode. It will automatically use the balance you put to do the short order at the same time as it buys the asset.
If you use this mode and put 1000 as balance, it will use 2/3 of 1000 for the arbitrage bot itself, and 1/3 for the short order. The arbitrage bot will then buy the equivalent of half available USDT, which is in this case, the half of 2/3 of the total balance, so 1/3. The 1/3 short order placed on kucoin futures will then make this position delta-neutral.
