Automated arbitrage trading is aimed at computerizing arbitrage opportunities that exist in the stock market using Quick Test Professional (QTP). The developed software aims at obtaining a low cost model for arbitrage trading. The program makes price comparisons of 25 to 30 stocks every 30 seconds, which has a great advantage over manual arbitrage trading. The automated arbitrage trading developed in this thesis uses QTP and does not need any human intervention. It helps small traders take advantage of arbitrage opportunities that exist in different price segments of the stock market. The QTP tool compares prices of cash and future segments of the listed stocks to check if there is any arbitrage trading opportunity. It also checks prices of some pre-selected securities against preset conditions to determine if any of the securities pass the test. If the condition is satisfied, QTP initiates buying/selling on the arbitrage opportunity and thus helps make profit on the transaction. It uses Odin Diet trading platform to get updated price feeds of the securities. This procedure is executed after every 30 seconds by QTP.
