Sequential arbitrage

Capture a price gap with one strategy wallet.

8. Arbitrage strategies for single-wallet setup and profit safeguards.

Sequential arbitrage uses one strategy wallet. It buys a token on the cheaper DEX, waits for the fill, then sells the received tokens on the more expensive DEX.

Before you start

Fund Wallet A with ADA. Keep the Surge tab open. The wallet needs your maximum trade size, reserve floor, order deposits, and fees.

Sequential execution needs no token inventory. It is slower than parallel arbitrage because the sell begins only after the buy fills.

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. Choose Wallet A as the strategy wallet.

Surge compares eligible pools at every price update. It includes 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 submits the buy leg on the cheaper DEX.

2. After it fills, Surge sizes the sell using the exact tokens received.

3. Surge submits the sell on the DEX offering the best return.

If the sell cannot fill, Surge re-offers it using its concession process. After unsuccessful attempts, the opportunity becomes Partial. You can then close the remaining position manually.

Risks

Prices can move between the buy and sell. A filled buy does not guarantee a profitable sell. Set a daily loss limit and monitor partial opportunities.

See Signing and approvals for how strategy trades are signed.