The businesses that are going to create an automated trading robot must consider trading commissions in order to analyze whether the strategy would be profitable enough. The triangular arbitrage robot is trying to find some price discrepancies among three pairs of instruments, but the trading commissions might decrease or even eliminate the profit of every trading cycle.
In the course of development of the robot, businesses must make sure that their software would take into consideration the exchange commissions, spread between the buy and sell prices of assets, slippage, and liquidity of the market. The businesses are able to consider their exchange fees depending on the pricing policy of exchanges, trading volumes, and account fee tiers.
Historical backtesting, paper trading, live market monitoring, and testing of the robot under different market conditions are necessary for the businesses in order to check whether the strategy would still be viable despite the costs.
With the help of proper project planning and testing, triangular arbitrage bot development could become more effective in terms of strategy evaluation. Good planning, milestone tracking, and testing are useful in helping the development team deliver on time.
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