Hello reddit,

I'm going to share with you a strategy previously work for me in 2024.

The concept still applies, but this particular trading pair do not work anymore in 2026.

Strategy

I've been using a trading strategy in the past as follow:

1. trading 2 stable coin pairs, DAI and USDT.

2. the main concept is assuming all stable coins always return to a 1:1 USD peg. so I buy DAI/USDT at 0.9995 and sell DAI/USDT at 1.0005.

3. uses limit order to ensure the price is precise.

4. There won't be opportunities every day, but I can wait.

5. The returns APY are like 5%-7%

Risk

This strategy is low-risk most of the time, but it carries a tail risk, a de-peg event. e.g. UST collapsing entirely. The strategy assumes the peg always recovers, which is true for DAI and USDT historically, but not guaranteed.

Execution

1. The exchange I use was Bybit because of 0 fee at that time.

2. I rent a $5/month VPS and wrote a simple script to create limit order every 15 minute.

By the way, some people may consider a 5%–7% APY to be low. For me, however, this is my first fully working algorithmic trading setup. The satisfaction of seeing it perform are what motivate me to keep improving the project.

I'd love to hear your thoughts and feedback.