Charted notes on arbitrage bot architecture in trading automation: mechanics, waypoints, and the wrecks recorded in production.
Mechanics
The mechanics of arbitrage bot architecture form one pipeline: raw market data in, computed signal out, decision routed to the order engine.
Waypoints (Configuration)
Parameter choices in arbitrage bot architecture steer both signal character and operational load. Log every change and the reason behind it.
Wreck Record (Failure Modes)
Recorded failures for arbitrage bot architecture include regime changes, missed heartbeats, and positions that could not be exited cleanly.
Navigation Checks (Evaluation)
Evaluate arbitrage bot architecture on measured outcomes — return distribution, drawdown depth, operational burden — never on one lucky stretch.
Configuration Reference
# Arbitrage Bot Architecture tested configuration mode: production timeframe: auto risk_limits: max_drawdown: 15 percent max_position: 3 percent monitoring: alert_threshold: 0.5 report_interval: hourly
Parameter Impact
| Parameter | Effect | Trade-off |
|---|---|---|
| timeframe | Signal frequency | Higher means fewer but more reliable signals |
| risk_limit | Maximum exposure | Lower means safer but slower returns |
| lookback | Indicator sensitivity | Longer means smoother but lagging |