Algorithmic Trading in the Crypto-currency Financial Sector

This report is a summary of a long-term project completed by Ido Gilboa for his Honors Thesis. The purpose of this project is to determine if an arbitrage between different crypto-currency exchanges exists, and if it is possible to acts upon such triangular arbitrage. Bitcoin, the specific crypto-currency this report focuses on, has become a household name, yet most do not understand its origin and patterns. The report will detail the process of collecting data from different sources, manipulating it in order to run the algorithms, explain the meaning behind the algorithms, results and important statistics found, and conclusion of the project. In addition to that, the report will go into detail discussing financial terms such as triangular arbitrage as well as information system concepts such as sockets and server communication. The project was completed with the assistance of Dr. Sunil Wahal and Dr. Daniel Mazzola, professors in the W.P. Carey School of business. This project has been stretched over along period of time, spanning from early 2013 to fall of 2015.