AI-Powered Arbitrage Trading Bot

Our client operated a crypto trading desk and was losing profitable arbitrage windows to slower, rule-based bots that couldn't adapt to the market. We built an AI-Powered Arbitrage Trading Bot over 14 weeks. The system continuously monitors price feeds across centralized exchanges (CEX) and decentralized exchanges (DEX) simultaneously, using machine learning models to identify triangular, spatial, and statistical arbitrage opportunities with positive expected value after accounting for gas costs, slippage, and exchange fees. When an opportunity is confirmed, the bot routes the trade through the optimal execution path, submitting on-chain transactions via MEV-protected RPC endpoints to avoid front-running.

Technology Stack

• Python (Core Engine)
• TensorFlow / XGBoost
• CCXT (CEX API Library)
• Web3.py / Ethers.js
• Uniswap / 1inch SDK
• Flashbots RPC (MEV Protection)
• Redis (Low-latency Data)
• Apache Kafka
• PostgreSQL + TimescaleDB
• React + Recharts (Dashboard)
• FastAPI