Arbitrage Algorithm: Recipes
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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 ratio between Entry Trade Size and Exit Trade Size.
Using Recipe No. 1 as an example, the ratio between the Entry and Exit size is 2.23:1. This means the Entry Trade is 2.23x larger than the Exit Trade. If you wanted the Entry trade to be $1,000, you can calculate the Exit: $1,000/2.23 = $448
We have included an Entry/Exit Ratio under each recipe's Paramters section to make this easy.
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
Entry/Exit Ratio: 2.23:1
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.
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%
Entry/Exit Ratio: 2.23:1
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.
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%
Entry/Exit Ratio: 2:1
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.
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%
Entry/Exit Ratio: 2.23:1
Time Frame: 1 Day
Backtesting Period: January, 2023– March, 2025
Results:
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.
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
Entry/Exit Ratio: 1.125:1
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.
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
Entry/Exit Ratio: 1:0.48
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.
