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1. downan+(OP)[view] [source] 2022-05-21 23:32:35
Of course there are limits to every opportunity. I make money everyday from opportunities that exist on microsecond timescales. I run arb and loan liquidation bots, so I haven't had a single losing day, ever. The last two weeks were quite profitable for me, actually the best two week period I have ever had. There are other strategies that are easier to pull off, such as market making, that have moderate risks and outsized returns.

The point is that these opportunities exist, and they always will exist, you just have to be smart enough to be able to get into them. If someone needed money for infrastructure to run an arb bot, for example, and offered you above market, risk-free returns, it's at least possible they aren't lying to you. That was my point.

replies(2): >>notaha+QN >>simonh+YY
2. notaha+QN[view] [source] 2022-05-22 09:20:32
>>downan+(OP)
> If someone needed money for infrastructure to run an arb bot, for example, and offered you above market, risk-free returns, it's at least possible they aren't lying to you. That was my point.

If you needed money for infrastructure for more arb bot, would you look for random novices and offer them 15% (and raise $3m in VC to market to random novices)? Or would you take out an unsecured personal loan from a bank at a lower rate, or a much lower cost loan from a counterparty involved crypto, especially one who understands the nature your trades?

3. simonh+YY[view] [source] 2022-05-22 11:31:51
>>downan+(OP)
I’m sure it’s a great business, but what would happen if 10 competitors all spun up arb bots tomorrow morning?

There’s a very low chance of that happening, but not zero.

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