Crypto arbitrage

Screening Filters

1. Price ≥ $0.01

   • Purpose: Exclude illiquid “micro-price” tokens that are harder to arbitrage efficiently.
   • Rationale: Extremely low‑priced coins (fractions of a cent) often have:
     • Huge percentage spreads but tiny absolute dollar value
     • Poor order book depth and higher execution/slippage risk
       For practical arbitrage, you typically want assets where each trade can move meaningful capital without breaking the market, which this filter supports.

2. Market Cap ≥ $100,000,000

   • Purpose: Focus on larger, more established tokens that trade on multiple major exchanges.
   • Rationale: Arbitrage relies on:
     • Listings across several venues (CEX/DEX) to create price discrepancies
     • Reasonable confidence in continued trading and lower delisting risk
       Mid‑ to large‑cap coins are more likely to be:
     • Listed on many exchanges (more arbitrage routes)
     • Less prone to manipulation than tiny micro‑caps

3. 24h Turnover (Volume) ≥ $10,000,000

   • Purpose: Ensure high liquidity for entering and exiting positions quickly.
   • Rationale: For arbitrage, volume is critical:
     • Tight spreads and deeper order books
     • Ability to move in and out without causing major price impact
       High turnover means you can actually execute arbitrage trades at the quoted prices rather than theoretical ones.

4. 24h Volatility Between 3% and 20%

   • Purpose: Target coins with enough price movement to create cross‑exchange differences, but not so much that risk becomes uncontrollable.
   • Rationale:
     • Lower bound (≥ 3%): If volatility is too low, price gaps across exchanges are usually tiny and may not cover fees, funding, and latency risks.
     • Upper bound (≤ 20%): Extremely volatile coins can:
       • Move against you during transfers between exchanges
       • Invalidate arbitrage assumptions before trades settle
         This band aims for a “sweet spot”: active, moving markets where arbitrage spreads appear, but not chaotic.

5. Is Trending = True

   • Purpose: Prioritize tokens currently attracting attention and activity across the market.
   • Rationale: Trending coins often:
     • Experience short‑term mispricings as new capital flows in unevenly across exchanges
     • Have rapidly thickening order books and volume spikes, which are ideal for short‑lived arbitrage windows
       By focusing on trending assets, the screener increases the chance of identifying coins where cross‑venue dislocations are happening now, not just in theory.

Why Results Match Your “Crypto Arbitrage” Query

• The screen emphasizes liquidity and tradability (market cap and turnover), which are essential to execute arbitrage in practice.
• The volatility band is tuned to favor markets where price discrepancies are more likely but still manageable.
• The trending filter targets coins where current market activity may be creating fresh, exploitable mispricings across different exchanges.
• The price floor and other filters collectively avoid the illiquid, highly manipulated micro‑caps where “arbitrage” is often not reliably executable.