02-25-2018, 03:27 AM
I'll simplify what the theory behind the arbitrage strategy is, but I don't know exactly how Blackbird incorporates it.
Exchange A BTC is 10k
Exchange B btc is 10.1k
On both exchanges you have 5 btc and 50k in tether. On Exchange B you sell 1 btc, and on Exchange A you buy 1.01 btc. The theory is that you can capture the profits from arbitration with this method without transferring the funds across exchanges.
Hope this helps to make sense what it does.
Exchange A BTC is 10k
Exchange B btc is 10.1k
On both exchanges you have 5 btc and 50k in tether. On Exchange B you sell 1 btc, and on Exchange A you buy 1.01 btc. The theory is that you can capture the profits from arbitration with this method without transferring the funds across exchanges.
Hope this helps to make sense what it does.