Problem Screen

Arbitrage is considered riskless profit for investors and traders. But these days, arbitrage is challenging to locate and, once found, won’t last long. Some Hedge Funds and others won’t look for arbitrage opportunities at all; doing so comes with errors and high costs.

The Problem

Some arbitrage exists, but the window of opportunity is too small for humans to manage it. Some chances are available for mere milliseconds.

The Solution

Imaginovation created an automated trading system to discover arbitrage opportunities using artificial intelligence (AI) technology. What separates this system from other non-AI approaches is the ability to determine the actual market inefficiency causing the arbitrage. For example, if it suddenly becomes less expensive to purchase Gold with Euros then it is with Dollars, the system can determine if the discrepancy is in Gold, Euros, or Dollar. This approach makes it possible to make the most profitable exit from the opportunity.

The real-time system discovers arbitrage opportunities on a regular basis. Due to the nature of these opportunities, the system must execute entry and exit within milliseconds. The program recognizes the possibility and completes the transaction – all without human intervention.

Technologies Used