Check Spread Percentage
An Arbitrage Bot needs to quickly determine if a potential trade offers a 'Spread %' greater than 1.5% to justify execution. If the spread is sufficient, the bot should be instructed to 'Execute Trade'; otherwise, it should 'Hold'.
=IF(B2>0.015, "Execute Trade", "Hold") How it works: This IF function acts as a decision-making engine for the Arbitrage Bot. It evaluates the 'Spread %' in cell B2 against the critical threshold of 1.5%. If the condition (B2 > 0.015) is met, the formula returns 'Execute Trade', signaling a profitable opportunity. If the condition is false, it returns 'Hold', preventing the bot from engaging in trades with insufficient profit margins. This automates a crucial part of the arbitrage strategy, ensuring only high-potential trades are considered.
Data Setup
| Trade ID | Spread % |
|---|---|
| T001 | 0.012 |
| T002 | 0.018 |
| T003 | 0.009 |
| T004 | 0.021 |
| T005 | 0.015 |
Step-by-Step Guide
Identify the cell containing the 'Spread %' for the current trade opportunity. In our mock data, this is cell B2.
Set up the logical test: Check if the value in B2 is greater than 0.015 (which represents 1.5%).
Define the 'value_if_true': If the spread is indeed greater than 1.5%, the bot should 'Execute Trade'.
Define the 'value_if_false': If the spread is not greater than 1.5%, the bot should 'Hold'.
Combine these components into the IF function: `=IF(B2>0.015, "Execute Trade", "Hold")`.