Arbitrage Opportunity for Intraday

Algos, strategies, code
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Hey Dipan, glad to see some decent efforts going in here. There are few things you need to note -

  1. Algos - There are highly sophisticated algos residing on servers collocated at the exchanges. These algos also have access to TBT data.

  2. TBT Data - Also called ‘Tick by tick’ data captures every trade that happens on the exchange. As you can imagine, there are several trades that occur on a per second basis. It is impossible for any broker to relay TBT information at the retail level (bandwidth constraints etc).

  3. These algo with access to TBT can spot opportunities much quicker. So before you can even see them, they vanish.

After all this, even if you happen to spot a good arb opportunity, then costs could be prohibitive. While brokerage is not a big constraints (if you are trading with Zerodha), taxes and applicable charges could be a pain and hence chasing the arb opportunity may not really be worth it.