Arbitrage Algorithm: Recipes

This section provides actionable case studies with tested parameter sets that clients can replicate in TradingView. Each example balances cash flow generation and Crypto accumulation based on specific objectives.

Note: When you find a recipe you want to use, but would like to change the amount of money you are buying and selling without changing it's performance, you will need to take note of the proportion between Entry Trade Size and Exit Trade Size.

Using STH Recipe No. 1 as an example, the proportion between the Exit and Entry size is 81.25%. This means the Exit Trade is 81.25% smaller than the Entry Trade. If you wanted the Entry trade to be $1,000, you can calculate the Exit: $1,000*0.8125 = $812.50

We have included an Exit to Entry Proportion under each recipe's Parameters section to make this easy.

Bitcoin Recipes

Short Time Horizon (STH) Recipes

Short time horizon recipes are backtested over the previous 6 months, optimized for current market conditions. These recipes are tailored to deploy and trade meaningful amounts of capital across shorter time horizons.

[BTC] STH Recipe No. 1: Daily Arbitrage

Goal: Accumulate a Bitcoin position at a low cost basis while taking advantage of volatility to book cash profits.

Parameters:

Entry Trade: Purchase $8,000 when price drops 3%
Exit Trade: Sell $6,500 when price rises 3.5%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 81.25%
Time Frame: Daily
Backtesting Period: January, 2025 - June, 2025

Results:

Initial Capital: $100,000
Cash Profit: $2,742
Bitcoin Accumulated: $96,170 (0.92 BTC @ $104,000)
Net Profit: $20,455 (87% from BTC growth, 13% cash)
CAGR: 45.29%

Long Time Horizon (LTH) Recipes

Long Time Horizon recipes are backtested over many years, optimized to endure multiple market cycles. These recipes are tailored to deploy capital over a long time without adding additional capital. We recognize this isn't completely realistic as the majority of clients add capital throughout a multiple year time horizon. Therefore, the statistics for each recipe represent lower performance than what will realistically occur.

Never the less, the recipes below offer substantial returns. Ensure that you are sizing entry and exit trade amounts to fit your account size. For example, if you deploy LTH Recipe No. 1 with a $100,000 account, you will want to multiple the entry and exit trade size by 2x in order to match the return results.

[BTC] LTH Recipe No. 1: 6 hour Arbitrage

Goal: Maximize short-term cash profits in volatile intra-day markets while building a core BTC position.

Parameters:

Entry Trade: Purchase $580 when price drops 2.5%
Exit Trade: Sell $260 when price rises 2.1%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 44.8%
Time Frame: 6 Hour
Backtesting Period: January, 2019– April, 2025

Results:

Initial Capital: $50,000
Cash Profit: $98,913
Bitcoin Accumulated: $520,776 (6.53 BTC @ $79,588)
Net Profit: $471,568 (79% from BTC growth, 21% cash)
CAGR: 47.52%
Best For: Clients comfortable with moderate activity who would like to generate a moderate cash position while growing their BTC core position.

[BTC] LTH Recipe No. 2: Daily Arbitrage

Goal: Maximize short-term cash profits in volatile markets while building a core BTC position.

Parameters:

Entry Trade: Purchase $580 when price drops 2.5%
Exit Trade: Sell $260 when price rises 2.1%
Exit to Entry Proportion: 44.8%
Time Frame: 1 Day
Backtesting Period: January, 2019– January, 2025

Results:

Cash Profit: $68,440
Bitcoin Accumulated: $246,189 (2.3 BTC @ $107,000)
Net Profit: $314,629 (78% from BTC growth, 22% cash)
Annualized Return: 26.7%
Best For: Clients comfortable with moderate activity who would like to generate a moderate cash position while growing their BTC core position.

[BTC] LTH Recipe No. 3: Cycle Arbitrage

Goal: Maximize BTC & Cash profits over entire market cycles, continuously

Parameters:

Entry Trade: Purchase $50,000 when price drops 20%
Exit Trade: Sell $25,000 when price rises 16%
Exit to Entry Proportion: 50%
Time Frame: 1 Week
Backtesting Period: January, 2019– January, 2025

Results:

Cash Profit: $191,840
Bitcoin Accumulated: $991,553 (9.8 BTC @ $101,000)
Net Profit: $1,183,393 (84% from BTC growth, 16% cash)
Annualized Return: 53%
Best For: Clients seeking to deploy large amounts of capital at cycle bottoms and take profits during and near the end of cycle tops.

[BTC] LTH Recipe No. 4: Bitcoin Yield

Goal: Maximize BTC yield while accumulating BTC

Parameters:

Entry Trade: Purchase $1,200 when price drops 2.5%
Exit Trade: Sell $1,500 when price rises 2.1%
Exit to Entry Proportion: 125%
Time Frame: 6 Hour
Backtesting Period: October, 2021– April, 2025

Results:

Cash Profit: $102,454
Bitcoin Accumulated: $129,200 (1.36 BTC @ $95,000)
Net Profit: $144,372 (29% from BTC growth, 71% cash)
Annualized Return: 25.77%
Realized Cash Yield: 20.32%
Best For: Clients seeking significant cash yield while accumulating BTC over the long term.

Solana Recipes

Short Time Horizon (STH) Recipes

[SOL] STH Recipe No. 1: High Cash Flow

Goal: Maximize short-term cash profits in volatile markets while building a small SOL position.

Parameters:

Entry Trade: Purchase $14,000 when price drops 6%
Exit Trade: Sell $11,500 when price rises 5%
Exit to Entry Proportion: 82.14%
Time Frame: 1 Day
Backtesting Period: January, 2025– June, 2025

Results:

Cash Profit: $19,115
Solana Accumulated: $33,317 (227 SOL @ $146)
Net Profit: $23,800 (20% from SOL growth, 80% cash)
CAGR: 53.35%

Long Time Horizon (LTH) Recipes

Never the less, the recipes below offer substantial returns. Ensure that you are sizing entry and exit trade amounts to fit your account size. For example, if you deploy LTH Recipe No. 1 with a $200,000 account, you will want to multiple the entry and exit trade size by 2x in order to match the return results.

[SOL] LTH Recipe No. 1: High Cash Flow

Goal: Maximize short-term cash profits in volatile markets while building a small SOL position.

Parameters:

Entry Trade: Purchase $2900 when price drops 5%
Exit Trade: Sell $1300 when price rises 4.2%
Exit to Entry Proportion: 44.8%
Time Frame: 1 Day
Backtesting Period: January, 2023– March, 2025

Results:

Initial Capital: $100,000
Cash Profit: $81,366
Solana Accumulated: $3,975 (34 SOL @ $117)
Net Profit: $85,341 (5% from SOL growth, 95% cash)
Annualized Return: 31.8%
Best For: Clients comfortable with moderate activity who would like to generate a large cash position while growing their SOL position incrementally.

XRP Recipes

Short Time Horizon (STH) Recipes

[ XRP] STH Recipe No. 1: Daily Cash Arbitrage

Goal: Maximize short-term cash profits using XRP volatility.

Parameters:

Entry Trade: Purchase $15,000 when price drops 3.7%
Exit Trade: Sell $16,000 when price rises 1.6%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 106.6%
Time Frame: Daily
Backtesting Period: January, 2025– June, 2025

Results:

Initial Capital: $100,000
Cash Profit: $26,593
XRP Accumulated: $0
Net Profit: $26,593 (100% cash)
CAGR: 60.26%

[ XRP] STH Recipe No. 2: 6 Hour Cash Arbitrage

Goal: Maximize short-term cash profits using XRP volatility.

Parameters:

Entry Trade: Purchase $5,000 when price drops 2.5%
Exit Trade: Sell $10,000 when price rises 2.2%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 200%
Time Frame: 6 Hour
Backtesting Period: January, 2025– July, 2025

Results:

Initial Capital: $100,000
Cash Profit: $17,785
XRP Accumulated: $34,474 (14,490 XRP @ $2.37/XRP)
Net Profit: $21,378 (83% cash)
CAGR: 47.34%

Long Time Horizon (LTH) Recipes

Never the less, the recipes below offer substantial returns. Ensure that you are sizing entry and exit trade amounts to fit your account size. For example, if you deploy LTH Recipe No. 1 with a $200,000 account, you will want to multiple the entry and exit trade size by 2x in order to match the return results.

[ XRP] LTH Recipe No. 1: 6 hour Arbitrage

Goal: Maximize short-term cash profits in volatile intra-day markets while building a core XRP position.

Parameters:

Entry Trade: Purchase $18,000 when price drops 3.1%
Exit Trade: Sell $16,000 when price rises 1.6%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 88.8%
Time Frame: 6 Hour
Backtesting Period: December, 2024– April, 2025

Results:

Initial Capital: $100,000
Cash Profit: $40,369
XRP Accumulated: $76,752 (36,196 XRP @ $2.12)
Net Profit: $49,027 (18% from XRP growth, 82% cash)
CAGR: 122%
Best For: Clients comfortable with moderate activity who would like to generate a substantial cash position while growing their XRP core position.

[XRP] LTH Recipe No. 2: 1 hour Cash Yield

Goal: Maximize cash profits while maintaining little to no XRP long term.

Parameters:

Entry Trade: Purchase $7,000 when price drops 2.5%
Exit Trade: Sell $14,583 when price rises 2.1%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 208%
Time Frame: 1 Hour
Backtesting Period: December, 2024– April, 2025

Results:

Initial Capital: $100,000
Cash Profit: $32,272
XRP Accumulated: $0
Net Profit: $32,272 (100% cash)
CAGR: 88%
Best For: Clients that want to take advantage of XRP volatility to generate a cash yield while mitigating long term XRP allocation risk.

Ethereum Recipes

Short Time Horizon (STH) Recipes

[ETH] STH Recipe No. 1: Daily Cash Arbitrage

Goal: Generate strong cash returns leveraging Ethereum volatility.

Parameters:

Entry Trade: Purchase $12,000 when price drops 7%
Exit Trade: Sell $24,000 when price rises 6%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 200%
Time Frame: 1 Day
Backtesting Period: January, 2025– June, 2025

Results:

Initial Capital: $100,000
Cash Profit: $21,789
ETH Accumulated: 0 ETH
Net Profit: $21,789 (100% Cash Yield)
CAGR: 48.33%

[ETH] STH Recipe No. 2: Daily Accumulation Arbitrage

Goal: Establish a sizable Ethereum position while minimizing drawdown.

Parameters:

Entry Trade: Purchase $12,000 when price drops 7%
Exit Trade: Sell $8,000 when price rises 6%
Sell Above Cost Basis: Checked
Exit to Entry Proportion: 66.6%
Time Frame: 1 Day
Backtesting Period: January, 2025– June, 2025

Results:

Initial Capital: $100,000
Cash Profit: -$656
ETH Accumulated: $82,147ETH (32.5 ETH @ $2,500)
Net Profit: $22,203 (100% from ETH growth)
CAGR: 49.2%

Long Time Horizon (LTH) Recipes

Never the less, the recipes below offer substantial returns. Ensure that you are sizing entry and exit trade amounts to fit your account size. For example, if you deploy LTH Recipe No. 1 with a $200,000 account, you will want to multiple the entry and exit trade size by 2x in order to match the return results.