⭐ birt Posted September 4, 2009 Report Share Posted September 4, 2009 I strongly doubt that will work with live accounts. Sure, with demo where there's no slippage, so there's no problem, you have guaranteed fills. But picture those 2 trades if, after opening the first trade, the second trade would be opened with a slippage of 3 (which happens pretty often) AND the first trade would be closed with a slippage of 2 against you. The system is pretty simple, it opens orders on both brokers if the pip difference between their prices is higher than the spreads added up. It probably takes a few hours of coding to reproduce it, but it's pretty pointless in my opinion. Quote Link to comment Share on other sites More sharing options...
hyperdimension Posted September 4, 2009 Report Share Posted September 4, 2009 Re: EA Forex Trading Arbitrage System I've thought about arbitrage between different broker before. I don't know about this particular one shown above, but it would be an interesting exercise to examine tick data from a number of different brokers and then determine which ones are the best to arbitrage between. An extra possibility could be doing triangular arbitrage (e.g. using EURUSD, USDCHF, EURCHF) across different brokers. Different brokers have different market making algorithms and different liquidity providers, so maybe there could be opportunities even after taking all things like slippage, requotes, latency etc into consideration. I came across this message on the elitetrader forum: I don't see or hear about intra-broker arbitrage these days. Last one we exploited was about 2+ years ago between Currenex, FXAll and SaxoBank. The cause of the exploit: 1. A flaw in one of the broker's FIX Gateway. 2. The dealers are stupid. 3. We suspect that the broker's volatility based pip spread logic was broken. The model got killed in 6 months but happily made money off it. Quote Link to comment Share on other sites More sharing options...
halobungie Posted September 5, 2009 Report Share Posted September 5, 2009 Re: EA Forex Trading Arbitrage System Hello, where can i download the Forex Trading Arbitrage System? ;) Greetings, halobungie Quote Link to comment Share on other sites More sharing options...
Lord_Sauron Posted September 5, 2009 Report Share Posted September 5, 2009 Re: EA Forex Trading Arbitrage System This is all I could find: Triangular Arbitrage http://www.4shared.com/file/108954659/90da8388/Triangular_Arbitrage.html?s=1 It cannot be backtested so till monday I dont even know if it will make any profit, or at least trade :) It uses EURUSD, GBPUSD and EURGBP, hope it is not some bs :) bye bye :) Quote Link to comment Share on other sites More sharing options...
thesecret Posted September 5, 2009 Report Share Posted September 5, 2009 Re: EA Forex Trading Arbitrage System This is piratically hedging in two brokers...nice idea, but, slippage, requotes....etc Quote Link to comment Share on other sites More sharing options...
Starting Posted September 5, 2009 Report Share Posted September 5, 2009 Re: EA Forex Trading Arbitrage System This is piratically hedging in two brokers...nice idea, but, slippage, requotes....etc Another thing to consider is how one broker use filtration of the datafeed. I know one example of broker whose quotes are delayed a bit and filtered at least one pip. So in principle you can refer to faster and unfiltered datafeed as an indication of entering a trade on a second, delayed and filtered. But I think this is not serious way of extracting profit from the market. I heard of one similar instance of delayed datafeed, but soon broker realized how profit was extracted from its pocket (I think it was one of the bucket shops) and this bug was immediately fixed. Again, not considering this to be a viable and solid system to work with on Forex. As for arbitrage, I would rather look for correlation models and indicators. Recently I found this indis on the internet. So maybe they'll be of use for those interested in hedging. http://www.4shared.com/file/130482559/4e99fce6/_Correlation_IND_CHARTlite.html http://i047.radikal.ru/0909/e6/5d5cdffe3d5b.gif Never traded hedging different pairs, but as I understand this kind of trading - if you work with highly correlated pairs and see current gap in their charts - then you open two opposite positions (one on one currency pair, another - on another) and soon due to correlation both pairs will tend to return moving their graphs in similar correlated way. So you get profit after closing both positions. :) Another way is to trade hedging pairs with positive swap, while on both pairs swap is payable every session and you just need to keep the value of your positions at breakeven point. Again, this is tricky business and I don't consider this as a plain trading FX, however some smart sharks from hedge funds earn considerable money from all those small tricks every year ;) Quote Link to comment Share on other sites More sharing options...
gladiator Posted September 8, 2009 Report Share Posted September 8, 2009 Re: EA Forex Trading Arbitrage System This is all I could find: Triangular Arbitrage http://[email protected]/file/108954659/90da8388/Triangular_Arbitrage.html?s=1 It cannot be backtested so till monday I dont even know if it will make any profit, or at least trade :) It uses EURUSD, GBPUSD and EURGBP, hope it is not some bs :) bye bye :) hello lord_Sauron, I tried to download the file from the link but I got a message saying the file is invalid. Do you have any alternative link? Thanks ! Quote Link to comment Share on other sites More sharing options...
Guest jaet1989 Posted September 8, 2009 Report Share Posted September 8, 2009 Re: EA Forex Trading Arbitrage System I if you are new to arbitrage, don't waste your time looking around thinking it is a godsend, because it is not, if you are well capitalised, great, as someone referred to in an earlier post, hedge funds and the big boys rule this technique with their PHD style theories, one being the spiders web, which some of you technicals may have encountered. For the small time traders, which I suspect most of us are here, and no disrespect, small time in trading can be huge these days, I strongly recommend using CADJPY and CHFJPY on a higher timeframe, the only pair which is correlated to a massive extent in all respects of arbitrage. If you google Stat Arb you will probably find some decent info on Statistical Arbitrage and how to employ it. James Quote Link to comment Share on other sites More sharing options...
Guest jaet1989 Posted September 8, 2009 Report Share Posted September 8, 2009 Re: EA Forex Trading Arbitrage System Find attached MT4 indicator for basic Arbitrage. James Quote Link to comment Share on other sites More sharing options...
Lord_Sauron Posted September 9, 2009 Report Share Posted September 9, 2009 Re: EA Forex Trading Arbitrage System I tried to download the file from the link but I got a message saying the file is invalid. Do you have any alternative link? Thanks ! sure, here it is :) Enjoy http://www.4shared.com/account/file/131317036/f0b2d55/Triangular_Arbitrage.html Quote Link to comment Share on other sites More sharing options...
adroure Posted September 9, 2009 Report Share Posted September 9, 2009 Re: EA Forex Trading Arbitrage System Thanks for this! what is the password? Quote Link to comment Share on other sites More sharing options...
Stormin_Norman Posted September 9, 2009 Report Share Posted September 9, 2009 Re: EA Forex Trading Arbitrage System http://[email protected]/account/file/131317036/f0b2d55/[b][i][u]Triangular_Arbitrage[/u][/i].html[/b] i tested this EA a few months ago and failed it. took me ages to find it. i think there is a thread on it here about it. i didnt keep results unfortunately. but it lose a fair bit of money. if someone finds otherwise, im happy to be incorrect. Quote "It is inconceivable that anyone will divulge a truly effective get-rich scheme for the price of a book." Victor Niederhoffer (1943–), US hedge fund manager and statistician Link to comment Share on other sites More sharing options...
Lord_Sauron Posted September 10, 2009 Report Share Posted September 10, 2009 Re: EA Forex Trading Arbitrage System the pass is http://www.masterforex.org/?id=1779 (it is in the info of the archive) I still haven't used this system so i have no clue about it :) Quote Link to comment Share on other sites More sharing options...
⭐ birt Posted September 10, 2009 Author Report Share Posted September 10, 2009 Re: EA Forex Trading Arbitrage System i tested this EA a few months ago and failed it. took me ages to find it. i think there is a thread on it here about it. i didnt keep results unfortunately. but it lose a fair bit of money. if someone finds otherwise, im happy to be incorrect. I don't think there are any classic triangular arbitrage opportunities in today's forex market... Perhaps there is the exception of news releases, when you can't trade them anyway due to spreads/execution. Another exception might be brokers with weird data feed filters, but in that case the spreads are most likely offsetting the gains. I'd be more than glad if someone proved me wrong, though. Edit: a quick look at the EA reveals that it doesn't actually have much to do with the classic triangular arbitrage (which is basically risk free profit when spotted). Quote Link to comment Share on other sites More sharing options...
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