6.4 Trading Strategies

Capture Bot isn’t doing “whatever”. It’s constrained to strategies where edge is quantifiable and execution matters more than prediction.

1. Cross-DEX Arbitrage

   • Simple: buy on DEX A, sell on DEX B.

   • Same pair, two venues.

   • Engine identifies spread, Bot locks it (if still there).

2. Triangular Arbitrage

   • Multi-hop loops: e.g. SOL → USDC → RAY → SOL.

   • Bot computes expected return across the loop after:

     • Fees on each hop.

     • Slippage.

     • Minimum fill size constraints.

3. Statistical Arbitrage

   • Uses historical relationships:

     • Correlation-based mean reversion.

     • Deviations from moving averages or fair-value models.

   • Still executed as market-neutral spreads, not naked direction.

4. Liquidity / Yield Arbitrage

   • Rebalances capital between venues/pools:

     • Where realized fee income per unit risk is higher.

   • Example:

     • LP tokens or derivative tokens lag underlying.

     • Bot buys the underpriced leg and hedges out market risk.

Each of these sits behind filters based on spread, liquidity, slippage, and MEV risk. If those don’t pass thresholds, no trade.