Parallel arbitrage

Capture a price gap with two strategy wallets.

8. Arbitrage strategies for dual-wallet setup and execution risks.

Parallel arbitrage uses two strategy wallets to submit both trade legs at the same time. It reduces execution delay but needs token inventory.

Before you start

Fund Wallet A with ADA. Fund Wallet B with enough of the token for the largest sell. Keep the Surge tab open while the strategy runs.

Wallet A buys on the cheaper DEX. Wallet B sells its token inventory on the more expensive DEX. The bought tokens go to Wallet B, and the ADA proceeds go to Wallet A.

Configure the strategy

Choose the token and at least two DEX's to monitor. Set your minimum and maximum trade sizes, minimum net profit, daily loss limit, and reserve floor. Select separate wallets for Wallet A and Wallet B.

Surge evaluates the full round trip on every price update. It subtracts pool fees, price impact, batcher fees, network fees, Surge fees, and a 15% safety buffer. It trades only when the expected result meets your minimum net profit.

How execution works

1. Surge builds the buy and sell legs when it detects an opportunity.

2. Both transactions are signed and submitted together.

3. Surge records profit after both legs fill.

If only one leg fills or submits, the opportunity becomes Partial. Use Force close to exit the resulting one-sided position after cancelling any parked order.

Risks

Parallel execution reduces timing risk. It does not remove fill risk. One leg can fill while the other fails. Maintain Wallet B's token inventory and set a daily loss limit.

See Signing and approvals for how strategy trades are signed.