The world‘s VERY FIRST Multi-Exchange Crypto-Arbitrage Trading Pool (MCTP)!
The MCTP is a novel and innovative way that enables GREATER DIVERSIFICATION & LOWERED RISKS when it comes to arbitrage trading of cryptocurrencies.
The MCTP pools all funds earmarked for arbitrage trading into a common trading pool. Exchanges on which arbitrage trading is carried out are given a weightage (eg: 20%).
Funds in this common trading pool are then used to carry out arbitrage trading in accordance to the weightage allocated to each exchange. The weightage of each individual exchange is computed via proprietary algorithm and is adjusted to suit market conditions from month-to-month.
This ensures that arbitrage trading risks are well-diversified across multiple exchanges and NO SINGLE EXCHANGE will have an outsized impact on arbitrage trading income.
In layman terms, one can compare investing in the MCTP with investing in the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index.