Many apps have promised to offer an arbitrage trading bot, but have never really come through with an effective product.
Pinnacle will include an automated arbitrage trading module that will analyze all exchanges within your account profile and execute trades within set parameters. To be clear, Pinnacle will allow users to make arbitrage trades on single exchanges and multiple exchanges at once. We all know the basic arbitrage trade takes place on one exchange between two markets. Pinnacle will provide that function, but it will also perform automated arbitrage between multiple exchanges with multiple markets. (Example.. LTC temporarily sells for a lower price on Poloniex than Bittrex. Pinnacle sets up the arbitrage trade and automatically makes all necessary transfers and trade executions to complete the transaction.) This is a complicated feature, but it is something that I have always wanted to see in a trading platform. Users can also select to only be alerted when certain parameters are met.
When trading arbitrage, speed of execution is the key to a successful transaction. If your coin takes 15-30 minutes to confirm, the opportunity will likely pass you by. There will be three choices available to users which can ensure a quick transfer of funds to process the trade.
The simple method: Pinnacle will analyze and execute arbitrage trades on individual exchanges. The platform will convert and swap coins/tokens automatically to facilitate the arbitrage trade. Pinnacle will be able to draw a solid return from these trades.
The advanced method: Our team will negotiate an agreement with participating exchanges to extend credit in multiple coins with your BRIL account balance set as collateral. A high speed transaction will take place between Pinnacle, Brilliance, and the exchange to complete a full arbitrage trade. The speed of BRIL transfers and confirmation (average 3.5 seconds) is what makes this transaction work so quickly.
The basic method: Standard arbitrage process where your chosen coins are automatically purchased, sent to the other exchange, and sold at the higher price. Afterward, Pinnacle will send the coins to the wallet of your choice. This process will be completely automated by Pinnacle. Pinnacle will choose the coin with quickest transfer speed to send between exchanges.
There will be a difference in arbitrage trade execution speed depending on the type of trade you are making. When an arbitrage trade is executed on a single exchange, the trade will take place in seconds. When the arbitrage trade is executed between two separate exchanges the speed of transfer and completion will depend on the coin chosen and speed of the exchange server. Pinnacle will execute the latter as fast as is currently possible. We will continue to work on methods to speed up the exchange to exchange transfer system moving forward. BRIL will be used to cover small arbitrage fees.
There are new exchanges in the works that will not charge fees, and we will be in contact with them for inclusion with our platform. Zero fees makes arbitrage opportunities more profitable. Our platform will be the most profitable way to trade arbitrage in the world and we will continue our work to make the process as fast as possible.