Bot Configuration

Automating Your Edge

Configuring a profitable arbitrage bot requires balancing aggression with safety. Aggressive settings capture more opportunities but increase risk. Conservative settings are safer but might miss profitable trades.

Start with conservative parameters and gradually increase aggression as you verify profitability. Set minimum spread thresholds at 0.5%, maximum position sizes at 1% of capital, and strict timeout limits. Monitor performance for at least a week before adjusting.

Infrastructure matters as much as strategy. Colocate your servers near exchange data centers to minimize latency. Use redundant API connections to handle failures. Implement monitoring and alerting for system health.

Gas optimization can significantly impact profitability, especially on Ethereum. Batch transactions when possible, use gas tokens during low-fee periods, and implement smart routing to minimize contract calls. On Solana, these concerns are minimal but still worth considering.

Continuous optimization is necessary for sustained profitability. Markets evolve, competition increases, and strategies decay. Regularly analyze your bot's performance, identify weaknesses, and adapt. What works today won't work forever.