Hey guys!
I'm looking to create my first arbitrage bot. I've got a machine that can run all day, but I’m still trying to figure out what strategy I want to use and which programming language to go with.
I’m totally new to this bot stuff. I want to focus only on DEXs since CEXs don’t interest me because of KYC stuff. If I’m missing something and you can actually use big CEXs without verification these days, let me know.
At first, I was torn between:
Triangular arbitrage
Statistical arbitrage (finding pairs that are cointegrated from past data and trading their spread)
But triangular arbitrage seems way too complicated for someone just starting out. There’s crazy competition from MEV bots and HFT, plus you need super low latency, private mempools, flashbots protect, and all that jazz.
So I’m thinking of sticking to “slower” strategies where speed isn’t the most crucial factor.
I also had an idea about trying to make money off MEV bots instead of going head-to-head with them, but I don’t really get how that would work. Most of them use private mempools anyway (like Flashbots Protect, Eden, etc.), so regular folks can’t see those transactions, right?
Here are my questions:
What arbitrage strategies on DEX are actually doable in 2025 for someone who doesn’t have co-location or super-fast infrastructure?
Is statistical/pairs trading on DEX still alive or has it disappeared completely?
Is it even worth trying to “earn from MEV” instead of competing against them?
I’m thinking of using Uniswap V3 SDK + The Graph subgraphs for my data. Is that a good starting point these days?
I'm just trying to make some cash, not turning this into a science project.
Any insights would be awesome!
Finding a workable arbitrage approach on DEX for total newcomers
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