BJF TRADING GROUP  ·  PRODUCT

What SharpTrader Crypto is

The configuration is deliberate. SharpTrader Lite ships by default with the Latency and Lock CL2 strategies; the Lock CL2 logic is forex-broker-centric and does not translate cleanly to crypto exchange microstructure. We replaced it with the Hedge module, which targets the cross-exchange spreads that dominate crypto arbitrage. The result is a tool that is smaller and cheaper than SharpTrader Pro but purpose-built for the crypto venue layer.

What’s included

SharpTrader Lite default vs the Crypto configuration

The Crypto edition is built on the same execution engine as the standard SharpTrader Lite. The difference is the strategy bundle: we removed Lock CL2, added Hedge, and added native WebSocket connectivity for the supported crypto exchanges.

Why WebSocket API beats REST for crypto execution

Until recently, most retail crypto trading software polled exchanges over REST — sending an HTTP request every few hundred milliseconds to ask for the latest order book. That was acceptable when crypto spreads were wide and arbitrage opportunities lasted seconds. It is no longer enough. As more exchanges have added WebSocket support, the venues using it have started clearing arbitrage windows in under 100 ms — well below any REST poller’s reaction time.

WebSocket changes three things:

• Push instead of pull. The exchange pushes order-book updates the moment they happen. REST forces you to ask, wait for the response, and accept that the answer is already stale.
• Persistent connection. One TCP/TLS connection is established once and stays open. REST opens a new request lifecycle every poll — handshake overhead repeated thousands of times per session.
• Lower latency, lower load. Practical end-to-end delivery on WebSocket is typically 10–50 ms; equivalent REST polling adds 200–500 ms even before the round-trip. Exchanges also rate-limit REST much harder than WebSocket streams.

For Latency arbitrage specifically, WebSocket is not an optimisation — it is a precondition. A 200 ms REST poll cannot react to a 100 ms divergence. SharpTrader Crypto is built on WebSocket from the ground up because anything less leaves the strategy chasing prices that have already moved. The same execution-time logic that breaks latency arbitrage in forex applies in crypto, in compressed form — see also our deep-dive on why latency backtests fail in production.

The Latency module — how it works on crypto exchanges

The Latency module is the speed-based half of the bundle. It runs against two data sources: a fast reference price stream (a high-quality, low-latency feed) and a target exchange order book (where you actually place orders). When the reference moves but the target exchange has not yet updated, the module detects the gap and submits a market order at the stale exchange price.

The mechanics in crypto are essentially the same as in forex, with a few crypto-specific notes:

• Sub-second windows. Crypto arbitrage windows are typically 30–200 ms on liquid pairs (BTC, ETH, large alts). WebSocket reduces detection latency to single-digit milliseconds.
• Fee-aware filtering. Many crypto exchanges charge taker fees of 0.05–0.15%, plus maker rebates on some. The module filters signals by net edge after fees, not raw price differential.
• Withdrawal and funding constraints. Latency in crypto is intra-exchange — you do not need to move coins between venues to capture the edge (that is Hedge’s job).
• Configurable per pair. Threshold, order size, and concurrent-positions cap are set per trading pair, so the same engine can run conservatively on BTC and aggressively on lower-volume alts.

The Hedge module — cross-exchange spread capture

The Hedge module is the cross-venue half of the bundle. Where Latency exploits speed within one exchange, Hedge exploits price divergence between two exchanges — the classic crypto arbitrage situation where the same asset trades at different prices on different venues.

The mechanic: when the cross-exchange spread for a pair exceeds a configured threshold (after fees), the module opens a long position on the cheaper venue and a short position on the more expensive venue — both legs over WebSocket so the two fills land as close to simultaneous as the exchanges allow. When the spread converges back to neutral (or to a smaller configured exit threshold), both legs are closed.

Hold times for Hedge are seconds to minutes — long enough that fees matter, short enough that you can run dozens of cycles per session on a single pair. The module manages position state on both legs independently so partial-fill situations are handled cleanly rather than left as one-sided exposure.

Supported exchanges — including US-accessible venues

SharpTrader Crypto integrates with leading WebSocket-enabled crypto exchanges. The integration list intentionally includes US-accepting venues, which is unusual in retail crypto-arbitrage software — many competing tools rely entirely on global-only exchanges that geo-block US-based traders.

Pricing and how to order

One-time license, no recurring fees. Ordering is handled directly by email so we can verify the exchange integrations you need and confirm system requirements before activation.

Frequently asked questions