Triangle arbitrage bot development refers to coming up with a bot which seeks to take advantage of the disparity in the price of a particular coin in three different pairs in the same exchange. By cross-referencing the three currencies against the base, the bot determines where an exchange rate product deviates to make a profit. Some of the sub development stages include designing the efficient and speedy algorithm, connecting with the exchange API for the live stream of data and coding of the bot with the help of languages such as Python or JavaScript. The bot is required to make money and should thus factor in the fees, slippage, and the changing market situations. Both, proof and operational spaces must be tested in realistic conditions to ensure maximum efficiency and to avoid the identified threats.
