Automation · Built with friends

Reverse Split Arbitrage Bot

A pipeline that ingests SEC reverse-split filings, classifies their fractional-share terms with an LLM, and cuts the time from filing to trade decision to minutes.

  • Python
  • OpenAI API
  • REST APIs
  • Discord API
  • Git

Overview

What it does and why

When a company reverse splits, the treatment of fractional shares is spelled out in a filing, in legal language that varies by company and only matters for a short window before the split date. Reading those filings quickly and correctly is the entire problem.

The pipeline does the reading. It ingests each new SEC reverse-split filing as it posts, uses the OpenAI API to classify the fractional-share provision, and pushes qualified cases to Discord with everything needed for a fast decision. A single execution layer then orchestrates the order through multiple brokerage APIs, taking the time from filing to execution down to minutes.

Technologies

And why each one
Python
Scraping, orchestration, and the glue between every other piece.
OpenAI API
Classifies each filing as round-up, cash-out, or unclear. The legal language varies too much for regex.
REST APIs
One execution layer abstracts over multiple brokerage APIs, so a single decision becomes an order everywhere it needs to be.
Discord API
A webhook is the UI: each opportunity arrives with what you need to decide in seconds.
Git
Versioned config, so prompts and broker integrations change through commits.

How it works

  1. 01

    Ingest the filings

    A scraper polls new SEC reverse-split filings, so each one surfaces the day it posts instead of after the window closes.

  2. 02

    Parse the legal language

    The LLM reduces each filing to one classification of its fractional-share provision. The wording varies too much across companies for pattern matching.

  3. 03

    Decide in Discord

    Qualified cases post with ticker, ratio, and deadline. A human makes the final call, keeping the pipeline from acting on a misread filing.

  4. 04

    Orchestrate the execution

    A confirmed decision flows through one code path that abstracts over multiple brokerage APIs, with per-broker quirks isolated behind a shared interface.

Two Discord alerts from the pipeline, each showing an upcoming reverse split with ticker, side, and quantity, followed by an Execute button
Alerts as they land in Discord: ticker, side, and quantity, one tap from execution.

Context

Background reading

Curious about the details? I'm happy to walk through any of it.

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The source for this project lives in a private repository and is available on request.