INTUE ARB

INTUE Arbitrage Agent

Overview

The INTUE Arbitrage Agent identifies statistical edges and pricing inefficiencies across correlated assets and markets. Unlike simple cross-exchange arbitrage, this agent detects complex statistical relationships that present exploitable opportunities.

const arbitrageAgent = new ArbitrageAgent({
  edgeThreshold: 0.05,  // Minimum edge ratio to consider (5%)
  executionSpeed: 'maximum',
  correlationTypes: ['direct', 'inverse', 'lagging', 'cross-ecosystem'],
  riskControl: 'adaptive'  // Adapts to market volatility
});

Edge Detection Methodology

The Arbitrage Agent employs sophisticated statistical methods to identify exploitable market inefficiencies:

  1. Statistical Variance Analysis: Identifies temporary deviations from established correlations

  2. Cross-Venue Pricing Discrepancies: Detects sustained price differentials across exchanges

  3. Temporal Inefficiency Detection: Recognizes lagged price adjustments between related assets

  4. Funding Rate Optimization: Exploits perpetual futures funding rate differentials

Each potential edge undergoes rigorous validation including:

  • Statistical significance testing

  • Execution cost modeling

  • Liquidity depth analysis

  • Risk/reward quantification

Key Functions

detectStatisticalEdges()

const edges = await arbitrageAgent.detectStatisticalEdges({
  correlationThreshold: 0.8,
  lookbackPeriod: '30d',
  minimumEdge: 0.03,  // 3% minimum exploitable edge
  assets: ['ETH', 'BTC', 'SOL', 'AVAX']
});

Identifies statistical edges between highly correlated assets, returning detailed analysis of potential opportunities.

analyzeSpreadDynamics()

const spreadAnalysis = await arbitrageAgent.analyzeSpreadDynamics({
  pair: ['ETH-USDT', 'ETH-USDC'],
  venues: ['binance', 'coinbase', 'kraken'],
  timeframe: '7d',
  granularity: '1m'
});

Provides in-depth analysis of spread behavior across different venues and stablecoin pairs, identifying patterns and anomalies.

Execution Strategy

The Arbitrage Agent implements sophisticated execution strategies to maximize edge capture:

  • Smart Order Routing: Optimizes order placement across venues

  • Concurrent Execution: Synchronizes trades to minimize exposure time

  • Slippage Protection: Dynamically adjusts execution based on real-time order book conditions

  • Partial Fill Management: Implements contingency strategies for incomplete executions

// Execute on detected edge
const execution = await arbitrageAgent.executeEdge({
  edge: detectedEdge,
  capitalAllocation: 0.05,  // 5% of available capital
  executionStrategy: 'concurrent',  // simultaneous execution
  timeLimit: 2000  // milliseconds
});

Performance Metrics

The Arbitrage Agent measures performance across key metrics:

  • Average edge ratio (historically 3.42:1)

  • Execution completion rate (96.7%)

  • Average execution time (1.3 seconds)

  • P&L per executed edge (0.83% net after fees)

  • Sharpe ratio (3.2 for Q1 2025)

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