Arbitrage with SnowBall is the practice of taking advantage of price differences of an asset in different markets or locations to make a profit. In the context of cryptocurrencies, cryptocurrency pairs refer to combinations of currencies that are traded against each other on an exchange.
For example, the BTC/ETH pair represents the exchange between Bitcoin (BTC) and Ethereum (ETH). Now, back to high-frequency triangular 
cryptocurrency arbitrage, this strategy involves making a series of quick, automated trades between three cryptocurrency pairs to take advantage of price differences. Suppose we have three cryptocurrency pairs: BTC/ETH, ETH/LTC, and LTC/BTC.
Triangle arbitrage is based on the premise that the prices of these pairs must be consistently related. The high-frequency triangular cryptocurrency arbitrage process can be described in the following steps:
- The trader starts with a certain capital in an account on the exchange and performs analysis for triangular arbitrage opportunities. Suppose the trader identifies a price discrepancy between the three pairs mentioned above. For example, the trader may notice that the purchase price of BTC using ETH is lower than the direct purchase price of BTC with USD.
- The trader takes advantage of this discrepancy and performs a series of fast, automated trades. He starts by buying ETH with USD, then trades ETH for LTC, and finally trades LTC for BTC. After completing these three trades, the trader ends up with a larger amount of BTC compared to the initial amount, making a profit. It is important to note that this strategy is based on speed and the ability to quickly execute trades.
- Traders use algorithms and automated systems to place split-second trades, as arbitrage opportunities can disappear quickly. It is worth mentioning that high-frequency triangular cryptocurrency arbitrage requires in-depth knowledge of the markets, advanced technological infrastructure, and the ability to make fast transactions.
Additionally, due to its highly competitive nature, this type of arbitrage may not be available to all traders and may be subject to risks, such as execution risk, transaction costs, and market volatility.