Is there a script/software that does Cash and Futures arbitrage or Future Calendar spread arbitrage using Kite-Connect ? Would be helpful if someone could point to the relevant resources or URLs.
There should be a relatively simple script to place the trades whenever an opportunity is spotted …but it doesn’t seem to be available - what are the reasons that this is not available if that is indeed the case.
-Deepak
Welcome and wonderful to see you here.
Arbitrage trading is how liquidity transfers between two different markets. Option strategies that involve futures/ stock in one leg and options in another leg comes to my mind immediately. There are so many other combinations based on your wallet, risk appetite and knowledge.
You can initiate arbitrage trades in Kite itself, if you can spot the opportunity. One can take help of streak(speculating… I have to still explore it). Mixture of paper trading and backtesting must give some fair idea. I would rather use excel first.
Yes, there are softwares that can find and do these arbitrages for you. Dealers, market makers, option writers, investment houses regularly use them. These softwares automate the mathematics in finding the arbitrages. Knowing the basics of arbitrage is very important, since the major catalyst in arbitrage is the prices have to converge after you put on the arbitrage. I would direct you to Zerodha Varsity for getting more info, on pair trading.
If the prices diverge then the losses can be higher. Don’t forget, it is all about speed. There are faster traders out there who have already seen with better access to market, to beat you.
There you go, opportunity identification is a creative process and still human. Have a fun day, and happy trading.
Thanks Qrious_Kamal,
Your response addresses everything around arbitrage except my question. 
Can you point to any script or software that does arbitrage trading on zerodha?