Why you’ll probably fail with flash loan arbitrage

Disclaimer: There may be errors in this article, I’m not an expert and take all of this with a grain of salt

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There are 2 main reasons:

1. The more aggregators of dex will be used (like 0x), the less arbitrage opportunities can be found, because already aggregators look for the best price and somehow take advantage of it without actual arbitrage.
2. If flash loan fees are for example 0.05%, it means that with arbitrage you will hope to make a profit greater than this threshold, but arbitrage opportunities are more likely to be taken before they reach this threshold by people investing large amounts of money out of their own pockets (at least in markets with a lot of liquidity, although this may not currently be the case at the moment, especially if people swap tokens without dex aggregators). So either you can try to be extremely competitive by looking in lots of different markets, even with little liquidity, however obviously making less money. But then the flash loan would not even make much sense.

I’m not an expert, if you have critism/comments please let me know.