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Binance Triangular Arbitrage Finder v2.0 | 20x Faster | 2x Easier | Socket API | Live Updates - YouTube
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I finally decided to upgrade the triangular
arbitrage finder tool that I shared last year.
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Iāve been getting a lot of comments on the
previous video asking if the tool was working
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or how to make it run because you have to
install some chrome extensions to make it
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run.
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So the process was very clunky and itās
not very user friendly.
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So Iāve decided to upgrade the tool and
release a new version which is a lot more
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easier to user and a lot more faster.
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Before we talk about it, if you want to understand
how triangular arbitrage trading works, I
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suggest you to watch the excellent video done
on this topic by Bennett.
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I'll leave a link for this as well in the
description box.
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So , to understand arbitrage trading, you
can watch that video.
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Now let's talk about some key enhancements
that were done in version 2.
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So the old one, it's not very optimized.
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It has to run through 6 million loop to calculate
all the opportunities.
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So it was very very slow.
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The new one, it only has to run through 5
thousand loop and it's significantly faster
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than the previous one.
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Iāll talk about this optimization in a minute,
after I summarize all the other aspects of
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the new version.
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Second, we used a REST api to get the binance
data and do the calculations in the previous
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one.
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So that is very slow.
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Because REST protocol is supposed to be used
only when you want to get the data for once.
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But in our case, we have to calculate it again
and again.
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So we need a steady stream of information
from the server every second.
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So in that case, it is optimal to use a Socket
api, instead of a REST api.
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So Iāve used socket api in the tool and
its significantly faster and the good thing
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it, REST apis have a restriction on the number
of calls you can make every minute, but that
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is not the case with socket api.
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You can call any number of sockets, there
is no restriction, so itās faster and no
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restrictions.
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Next, the old one required a chrome extension
to be installed to use.
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So itās clunky and itās not very trustworthy
to install chrome extensions.
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This one, you donāt have to un=install any
extensions.
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You can run some commands and start using
it righ t away.
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Old one was calculated every 5 mins, it's
not very ideal to calculate arbitrage every
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5 min, because trading happens so fast, these
opportunities, they hardly last a few seconds,
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so this timeframe is not applicable to trading
arbitrage opportunities.
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So this one, it runs on socket api, so its
real time, so it's significantly fast, you
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get real updates every second.
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Next the old interface was very clunky, there
were a lot of options and a lot of them were
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not used.
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So i took out all those options and simplified
the interface even further.
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Now letās talk about how the performance
was optimized and how am able to achieve 20x
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performance gain with the new version.
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So to understand that, you have to understand
some basic components of this calculation.
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So, whenever we take any, so this is called
a trading pair.
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So whenever you refer to symbols on binance,
you always refer to trading pair.
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A pair is composed of two assets.
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BTC is an asset, USDT is an asset.We have
several other assets like ETH, NEO, or you
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know, every crypto currency is an asset, and
they are coupled with a market to form a trading
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pair.
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On binance, you have 184 assets as of today.
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We have 184 assets and 565 tradable pairs,
so theses result in 5262 arbitrage-able paths.
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Now with v1, in order to identify all these
arbitragable paths, I had to loop through
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theses 184 assets 3 times, 3 times because
it's triangular arbitrage.
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So itās 184*184*184, that roughly comes
around 6 million.
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So 1 million loop takes roughly around 3.5
sec to process.
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So that means 6 million records take roughly
20 secs to calculate.
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So this is why v1 took 20 sec to perform all
the calculations.
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Now with v2, this 6 million loop, in order
to identify all these arbitragable paths,
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is only run once, and after that these paths
are stored and every subsequent loop, every
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iteration that we run is only executed on
these 5000 paths.
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So thatās how were able to reduce the processing
time to 1 millisecond.
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That being said, the socket sends the data
every sec, so it's safe to assume 1 sec as
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the combined processing time for v2.
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So thatās how weāre able to reduce the
run time from 20 sec to 1 sec.
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And we have to bring down the calculation
time to less than 1 sec because , remember,
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socket sends the data every sec.
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So we have to calculate all the calculations
in less than a sec, otherwise it causes a
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bottleneck.
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Now letās see how to install and use the
tool.
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You need to have Nodejs installed on the system.
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Itās a straight forward installation, Iāll
leave a link for this, you can just go to
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the site and download the current version,
click next=>next and install it.
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Itās very easy.
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After that, this is the link to download the
tool and you have to click on clone or download
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to download the zip file.
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Once you download and extract the zip file,
you will see these files in the folder.
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You have to go to this directory on cmd prompt
and then run ānode index.jsā.
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Thatās it!
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Then hit Enter.
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So you get the message that āArbitrage Bot
has just started on port 3000.
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Please wait...ā.
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So this is when the bot is doing the 6 million
calculations, and after it does the 6 million
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calculations, it gives you a url to access
the tool.
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Okay, the set up is done.
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It takes roughly a minute or 2 to finish this
whole process, and once the process is done,
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you can see the performance cpu usage comes
down to around 1% and the memory is also 50
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Mb, so itās quite, you know, you can just
leave it in the background and let it run.
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Itās not going to eat away your performance
or system resources, and once this setup is
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finished, you get this url to access the tool.
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So you can just copy this and go to your browser
, open the link and you can see that itās
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working.
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These are refreshed every sec, you can see
the data getting changed, you can see 1.127
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and it gets refreshed every sec, and if you
want to trade a particular coin, you can use
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this toggle button.
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So if I click āToggleā, it's off now.
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Itās not updated.
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And if you want to resume updating, just click
on āToggleā, and you can leave you can
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let this run in the background.
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So this is doing all the heavy lifting and
this is just to show you the results.
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You can see that the interface is almost similar
to the previous one because people have gotten
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used to it, right , so I didnāt want to
change it because this is already what you
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are used to.
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Thatās it for this video.
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I hope you find this useful.
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Leave your thoughts and suggestions in the
comments section.
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Talk to you in the next one.
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