AI Arbitrage Strategy Optimizer for SharpTrader: Revolutionizing Trading Efficiency Wednesday December 20th, 2023 – Posted in: Arbitrage Software, cryptoarbitrage software

In the dynamic world of trading, efficiency and precision are paramount. SharpTrader, a leading name in the trading industry, has introduced an innovative AI Arbitrage Strategy Optimizer, a game-changer for traders looking to enhance their trading strategies and outcomes.

OpenAI’s model for data analysis

OpenAI’s model for data analysis, known for its application in GPT (Generative Pre-trained Transformer) series, is a powerful toolTweakUltra (65 tweaks) in AI-driven data interpretation and prediction. This technology utilizes deep learning algorithms to analyze large datasets, identifying patterns and insights that might not be immediately apparent. The model’s strength is its ability to process and understand complex data structures. It is highly effective for applications like financial market analysis, which can predict trends and optimize strategies based on historical and real-time data.

OpenAI’s models, particularly in the GPT series, excel in analyzing and interpreting complex data through deep learning algorithms. These models are adept at understanding patterns and relationships within large datasets, a feature invaluable for sectors like finance where predictive analytics is crucial. They can process diverse data types, making them versatile for various applications beyond finance, like healthcare and logistics. Their ability to provide insights and make data-driven predictions is integral to modern AI-driven analysis and decision-making processes.

Harnessing AI for Optimized Arbitrage Trading Strategies

Strategy Variations: Latency, Lock, LockCL1, LockCL2, LockCL3

The AI optimizer is applicable for optimizing various arbitrage strategies such as latency, lock, and local. Each strategy is fine-tuned to leverage specific market conditions, providing traders with multiple options to suit their trading style.

Trading Instruments and Broker Integration

Integrating seamlessly with various brokers and trading instruments, the optimizer is designed to be versatile. It includes server names, ensuring a comprehensive approach to strategy optimization.

Crucial Parameters for AI Optimization

  • Strategy names can be latency, lock, local…. – arbitrage strategy.
  • Trading instruments.
  • Broker name includes server name.
  • Lot size – lot size to be traded. We are sure this parameter is also essential for AI optimization. Some plugins can leave orders with small sizes in the house (b-book) and clear (send to liquidity provider) orders with large orders.
  • Stop loss (points) – hard stop loss value.
  • Take profit (points) – hard take profit value.
  • Min profit – starting point for trailing (points).
  • Pips For Min Profit (points) – when the set Min profit parameter comes into effect after the price reaches Pips for Min profit value. They are used for brokers with broad stop/freeze levels.
  • Trailing Step (points) – distance arbitrage trade is trailed at.
  • Order Lifetime (seconds), maximum arbitrage deal duration (expressed in seconds)
  • Slippage (points), max allowed deviation from the price order is sent at. The order gets rejected or requoted if the price exceeds the permitted deviation. Works only for instant execution accounts and limits orders on FIX API accounts. For market execution accounts, it has no effect.
  • Diff To Open (points) – the difference between prices on a slow broker and a fast feed for opening arbitrage deals.
  • Min Spread Slow (pips) – minimal allowed spread for a slow broker. Arbitrage signals are ignored if the spread is lower than the slow value of the Min spread.
  • Max Spread Slow (pips) – maximum allowed spread for a slow broker. Arbitrage signals are ignored if the spread exceeds the Max spread slow value. If -1 – ignore.
  • Max Spread Fast (pips) – the maximum allowed spread for a fast feed. Arbitrage signals are ignored if the actual spread is higher than the spread fast value.

The optimizer also receives the results of trades corresponding to each set of parameters.

  • Slippage Open (points) – we this this parameter is most important for AI optimization, because anti-arbitrage plugins can be adjusted to increase the slippage without increasing execution time.
  • Execution Time Open (ms) – this parameter is also important because some arbitrage plugins can increase the slippage due to increasing order execution time.
  • Slippage Close (points)
  • Execution Time Close (points)
  • Profit (points) – this parameter is important to understand how profitable is this broker.

The AI Optimization Process

  1. Select “AI Optimization” from SharpTrader menu at the left top corner.

Select AI optimization from SharpTrader menu

Fig.1 – AI-Optimization menu.

2. Press “Add combination” button. Select “Strategy” for AI optimization from the available strategies list.

3. Select “Session” from the available sessions list of artificial intelligence optimization.

4. Select “Symbol” from the available symbols list.

5. Add “Broker tag”. If you want to be a part of collective optimization, please use broker tags exactly like broker’s server name. If you want to optimize by yourself only – use any name.

6. Press “Ok”.

Add combination of strategy, trading instrument and broker

Fig. 2 – Add combination for AI Optimization

Once sufficient data is gathered, the AI analyzes the information to determine the best settings for each broker, instrument, and strategy combination. Participants can then choose to adopt these optimized parameters for their future trading endeavors or opt out.

When the first round of  AI optimization famished, you will see Green readiness bar with 100%. In this case  view AI optimized parameters.

Fig. 3 – AI optimized parameters window.

And you can also overwrite your existing parameters for AI optimizing trading instrument (Press “Yes” button) or create new one instrument with AI optimized parameters (Press “No” button).

overview strategy paraments with new AI optimized parameters

Fig. 4 – Apply AI optimized parameters

You can continue optimization for the  first round AI optimized instrument. In this case Artificial Intelligence will use for optimizing more data and optimization should be more accurate.


SharpTrader’s AI Arbitrage Strategy Optimizer stands out as a sophisticated tool, empowering traders to refine their strategies with the power of AI. By analyzing extensive data sets and offering collective optimization, it paves the way for more informed, efficient, and profitable trading decisions in the fast-paced world of finance.