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One: The Awakening of a Retail Investor
"Family, who understands! ETH dropped 60% again in 2025, now I can't even afford instant noodles!"
In the crypto community group at 3 am, E Guardian cried while sending this voice message. The former 'all-in warrior of the crypto circle,' rushed into ETH with all savings at the peak of the bull market at the end of 2024, only to suffer a bear market blow for five consecutive months, with the account shrinking to a single-digit number.
But the turning point of fate always comes unexpectedly—one night, he suddenly came across a divine post: (BTC/ETH Exchange Rate Arbitrage: The Printing Machine for Holders). The post clearly stated:
"The ETH/BTC exchange rate has fluctuated for ten years; some have profited 21 times from this strategy, and the secret is just two words: lying flat + arbitrage!"
E Guardian slapped his thigh: "Isn't this just the salvaging plan tailored for me?!"
Two: Revealing the Principle of Arbitrage
2.1 The Birth of the Crypto Perpetual Motion Machine
Do you think arbitrage is the patent of Wall Street elites? Wrong! Arbitrage in the crypto world is ridiculously simple—
1️⃣ Golden Rule: BTC and ETH are like gears in a perpetual motion machine, both biting each other and indispensable. ETH/BTC has a ten-year fluctuation range of 0.016-0.123, with every deviation from the center violently returning (current exchange rate 0.01766 is at a historical low).
2️⃣ Volatility Equals Wealth: 2024 data shows that ETH/BTC fluctuates an average of 7.3 times a year, more stable than a girlfriend's emotional cycle.
3️⃣ ATM: Set the parameters, and the robot works 24 hours to move bricks for you; you can even hear the wallet 'ding-dong' sound when you sleep.
Take an example 🌰:
When ETH/BTC=0.05, exchange 1 BTC for 20 ETH;
When the exchange rate rises to 0.06, 20 ETH can be exchanged back for 1.2 BTC!
Earn 0.2 BTC passively, equivalent to getting a 20% return for free!
2.2 Quantitative Trading for Retail Investors
Traditional quantitative trading has a high threshold? Xiaoyi Quant's spot grid strategy allows beginners to take off directly:
Low Fees: The cost of a single transaction is negligible (see Xiaoyi's world for details)
500 Layer Grid: Automatically harvests every 0.6% price fluctuation (see Based on Binance's ETH/BTC Spot Grid 0.1%/0.6%/500 Position Strategy for details)
Dual Currency Hedging: Holding both BTC and ETH, making money in both rises and falls.
E Guardian exclaimed after reading: "Isn't this better than chasing highs and cutting losses? I declare that going all-in is a wisdom, and lying flat is an art!"
Three: Practical Operation Manual
3.1 Equipment Selection
Main Weapon: ETH/BTC Spot Grid
Core Secret Weapon: ETH and BTC can be used as collateral to achieve spot, futures, and cross-period arbitrage with an annualized return of over 60%, see (Xiaoyi Quant Super Arbitrage Nanny-Level Tutorial V2.0) for details.
Bulletproof Vest: 50% position dynamic hedging, buy 0.01 BTC of ETH for every 0.1% drop, sell BTC and convert back to ETH for every 0.6% rise.
3.2 Strategy Model Parameters
Currency: BTC, ETH
Single Currency Simulation Principal: 5 BTC (adjusted according to the user's actual situation, same below)
Number of positions: 500
First Position Capital: 0.01 BTC
Simulated Downside Resistance: 50-70%
3.3 Three Major Taboos in Parameter Settings
Parameter item self-destructive operation survival guide price range mindlessly set to 0-∞ stuck at 0.016-0.123 ten-year iron law grid density 500 layers filled without adjustment dynamically scaled according to volatility (current 45% volatility advises 0.8% spacing) 9 capital management going all-in for temporary excitement first position 0.01 BTC, add 10% for every 5% drop 6
3.4 Reverse Arbitrage of ETH/BTC Exchange Rate
In fact, if you hold ETH, you can also do reverse ETH/BTC spot grids. For example, if you hold 500 ETH, sell 1 ETH for BTC for every 0.1% increase, and sell BTC to buy ETH for every 0.6% decrease. If the ETH/BTC exchange rate continues to rise, the ETH in hand will gradually convert into BTC; if it continues to fall, the ETH in hand will increase. The current market is more suitable for reverse ETH/BTC exchange rate arbitrage, buying ETH at low prices, starting to sell as the exchange rate rises, and converting to BTC.
Four: Blood and Tears Lessons and Pitfall Avoidance Guide
4.1 Three Major Taboos Earned with Blood and Tears by E Guardian:
1️⃣ Unilateral All-In: In 2024, at ETH/BTC=0.12, ALL IN, but the exchange rate plummeted to 0.03, cooler than the wind on the rooftop.
2️⃣ Fee Black Hole: High-frequency trading lost 50% profit, the exchange happily pocketed half a Beijing school district apartment.
3️⃣ Contract Liquidation: Leveraged up to 20 times, a 0.5% fluctuation directly triggers forced liquidation, more thrilling than a roller coaster.
4.2 Three Principles of Survival
Cash Shield: 50% position never fully invested, buying the dip during a crash is more accurate than a firefighter catching someone jumping from a building.
Dynamic Balance: Withdraw 20% of profits every month to buy gold, reinvest the remaining 80% + arbitrage, more stable than a Swiss bank vault.
Zen Mindset: When others call out trades, you turn off your computer; when others panic, you open the grid, cultivating to the state of "unmoved by rises and falls, watching the flowers bloom and fall in the courtyard."
Five: To All the Retail Investors Who Have Been Cut
E Guardian, holding instant noodles, summarizes three universal truths:
1. Time Magic: Compounding 30% annually turns into 13.7 times in ten years, even Buffett wants to come to the crypto circle to learn.
2. Machine Domination: Emotions are humanity's weakness, while code is the cold printing machine.
3. The Legend of Immortality: As long as BTC and ETH are still at odds, this strategy can reach into the coffin and count money.
Ultimate Secret:
Profit in Bull Markets, Make Money in Bear Markets, Horizontal Inscription: Never Lose!
(The strategy in this article is inspired by Xiaoyi Quant's release on March 13, 2023, based on Binance's ETH/BTC spot grid 0.1%/0.6%/500 position strategy, X: Arbitrage Old Six @taolige666's release on May 16, 2023, The Best Investment Approach for the Public | BTC/ETH Exchange Rate Arbitrage, investment involves risks, operations require caution.)
🔥 Surprise: Follow @小亿量化 and retweet this tweet, draw 5 people to give away a one-month trial of Xiaoyi Quant software along with (ETH/BTC spot grid 0.1%/0.6%/500 position parameter package) (server fees not included)!
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