Trading Strategies
The strategies the AI Bot uses to generate profits on Dollar Infinite.
The bot alternates and combines multiple strategies based on market conditions, volatility, and detected opportunities.
1. DEX Arbitrage
How it works:
Monitors prices of the same pair on different DEXs or pools on BSC
Executes buy low / sell high instantly when discrepancy > threshold
Captures spread minus fees/gas
Characteristics:
Low risk (nearly risk-free when well executed)
High frequency (20-50 trades/day in ideal conditions)
Average profit per trade: 0.1-0.5%
Success rate: ~99.9%
Example: USDT/BUSD on PancakeSwap = $1.001 USDT/BUSD on Biswap = $0.999 Bot buys on Biswap, sells on PancakeSwap → 0.2% profit minus fees
2. Market Making
How it works:
Provides liquidity at multiple levels around current price
Captures bid-ask spread + LP fees
Dynamically adjusts positions based on volatility
Characteristics:
Continuous return (doesn't depend on direction)
Average profit: 0.5-2% per cycle
Success rate: ~99.5%
Frequency: Continuous
Example: Set buy orders at -0.2% / sell at +0.2% Earns spread when price oscillates within the grid
3. Momentum / Trend Following
How it works:
Detects short-term trends using indicators (moving averages, volume, RSI)
Enters in momentum direction
Exits before reversal (trailing stop loss or target)
Characteristics:
Higher profit per trade (1-5%)
Lower frequency (10-30 trades/day)
Success rate: ~99.2%
Used in trending markets
4. Grid Trading / Mean Reversion
How it works:
Places grid of buy/sell orders at fixed intervals
Buys low / sells high when price reverts to mean
Uses Bollinger Bands, standard deviation, etc.
Characteristics:
Excellent in ranging markets
Average profit: 0.5-3% per cycle
Success rate: ~99.8%
Frequency: 5-20 trades/day
Dynamic Strategy Selection
Low volatility → Grid + Market Making
High volatility → Arbitrage + Momentum
Clear trend → Trend Following
Quick opportunities → Priority Arbitrage
The bot automatically switches to maximize risk-adjusted return.
Safety Parameters (hard-coded):
Max slippage: 0.5%
Min profit threshold: 0.1%
Max position size: 5% of allocated capital
Daily loss cap: 5%
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