Developing and Backtesting DEX/CEX Arbitrage Trading Strategies
Identifying Arbitrage Opportunity and Risk
Download NowDeveloping and Backtesting DEX/CEX Arbitrage Trading Strategies
Arbitrage using cryptocurrency exchanges remains as lucrative as ever. But what does arbitrage look like using decentralized exchanges, and how can firms leverage price differentials to make low-risk gains?
In this report, we used Amberdata’s API to backtest arbitrage trading strategies. We go into the structure of decentralized and centralized exchanges, explore the different factors and considerations necessary to develop a trading strategy, and then discuss our own backtesting results.