Building an AI Agent for Arbitrage Trading on DEXs (Tutorial)
DEX arbitrage tutorials often skip failure modes: reverts, MEV, partial fills, and bridge latency. This educational outline emphasizes detection, simulation, and policy limits before any live execution. Educational content only—nothing here is financial advice or a product endorsement.
Detection layer
Compare quotes across pools with explicit staleness bounds. Treat oracle and mempool uncertainty as first-class inputs, not edge cases.
Simulation and caps
Simulate net outcome after fees, slippage tolerances, and gas. Enforce maximum trade size, daily loss caps, and mandatory human approval for novel routes.
Tutorial disclaimer
This is not a recommendation to run arbitrage strategies. Markets are competitive; losses are possible. Use testnets and paper models first.