Earning Bitcoin Through Arbitrage Software

How does one automate the bank aspect of arbitrage? You'd need to withdraw the money to your bank account and make a deposit to the other exchange pretty often, you'd like to automate that as well. Most banks don't provide an API to do this though.

I made a couple of hundred pounds out of 20 by spotting intra exchange arbitrage opportunities on cryptsy. Just calculated all possible paths through the various coins and waited for a profitable loop to open. It was like riding waves through the markets, but the waves got smaller and smaller as the market became more efficient :( I started thinking about trying to understand if it might be possible to induce resonances within the interconnected markets to create more waves, but it I didn't have the time for such a hairbrained scheme.

I tried to do n-point arbitrage on a single service (e.g. US$-BTC-RUB-US$). The reason to stick to a single service was that moving money between services could not be automated at the time, and, as the article states, a huge spread is required due to withdrawal and banking fees.

While trying this, I got the impression that some people must already be doing this at large scale, possibly the operators of the service themselves. All types of n-point arbitrage I tried had zero return.

I was expecting some more insights however this is what basically a person with no previous experience with the topic in the Bitcoin context would write.

Anyway I also did it in the past as well, but nowadays there are too many players already and the exchange fees don't leave much room.

Does not work anymore.