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[share] Triangular Arbitage EA


mak2009

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Re: [share] Triangular Arbitage EA

 

I started this EA on demo on the 16th and it's making money nicely for me so far. When you say you're tired of loosing with this strategy, what do you mean? I haven't had any losses yet. Or do I just need to run it longer to see the bad?

 

can you make an mt4stats (or similar) page for us to look at?

"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

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Re: [share] Triangular Arbitage EA

 

what is your settings and what TF do you use it on?

I have it on a 5K demo account, eur/gbp 1H, and use default settings, but with 0.5 standard lotsize and $50 profit target. Not sure what the best profit target is, but I suppose we'll have to figure that out via trial and error to determine the max profit target while still retaining low risk. Of course, optimal profit target varies depending on lot size.

 

As you can see from my mt4stats, the lower profit target seems to get in and out of trades very fast. I really like that. It doesn't seem to take trades too often though.

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Re: [share] Triangular Arbitage EA

 

Hello guys,

 

I'm using this EA for long time

 

if you use default setting it will kill ur account soon

 

but u need to change the risk from 15 to 1 ;)

 

and every time I c its opening more than 10 orders I will stop the EA and wait for positions to be closed

 

then start again :-bd

 

TC.

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Re: [share] Triangular Arbitage EA

 

malmali, the one you're talking about is a different version. I have that version as well and you're right it does eventually kill the account, but the version in this thread is different, it is a true triangular arbitrage. It only takes two trades eur/usd and gbp/usd, then it waits to hit profit target. It also sets a eurgbp limit order. If profit target is not hit and eurgbp goes the wrong way then the limit order gets triggered and we have perfect triangle hedge, we then wait again for profit target. This version doesn't make profit as quickly as the other version, but certainly appears to be much, much safer.

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Re: [share] Triangular Arbitage EA

 

I see a problem with the EA tonight. It took eurusd and gbpusd trades as normal and created the eurgbp limit order. Problem is eurgbp price crossed buy limit order to the upside, but limit order didn't trigger. So, I had to manually create a market order on eurgbp and cancel the limit order. Of, course this means the eurgbp order is at a worse price so this will make it harder to take profit. I had this same issue on another demo account with this EA where the limit order didn't get triggered. Not sure if the EA is setting the limit order too late in fast moving market or what. I'm going to take a look at the code and see. A possible fix may be to have the EA automatically open up a eurgbp market order if price is X pips past the limit order and then have it cancel the limit order.

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Re: [share] Triangular Arbitage EA

 

youd think on a demo itd be opened no matter how quick the market moved, as its not a real trade. so slippage and fast markets shouldnt be the issue - i wouldnt think.

"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

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Re: [share] Triangular Arbitage EA

 

youd think on a demo itd be opened no matter how quick the market moved, as its not a real trade. so slippage and fast markets shouldnt be the issue - i wouldnt think.

Yes, that's why it was surprising to me as well. Maybe the EA tries to place the limit order close to current price in fast moving market, and by the time it gets the order placed price is already past the order. That would make sense since this is an arbitrage EA, it's watching for largest price discrepancy to open trades and largest price discrepancy will happen most likely when price is moving fast.

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Re: [share] Triangular Arbitage EA

 

No problem, mate. Here ya go:
hxxp://triangulararb.mt4stats.com

You shouldn't be having the same trade sizes for all three pairs, otherwise there will be an overall imbalance; you will have more exposure in a particular currency than the other two. Then it would effectively become a direction trade.

 

If you are short 1 lot of EURUSD and long 1 lot of GBPUSD, you should be long around 0.62 EURGBP to be in balance. But the trade size can vary depending on the prices of EURUSD and GBPUSD.

The EA would need to calculate the correct trade size in real-time. It should also use the correct price of of EURUSD and GBPUSD (either bid or ask price depending on whether going long or short). Does it do these calculations?

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Re: [share] Triangular Arbitage EA

 

Does it do these calculations?

It's supposed to. Looks like we will have to do some fixing on this bot if we want it to work properly. It started by taking .4 gu, .5 eu, .5 eg but after a few trades it started doing .5 for all three pairs. So, this bot needs limit order fixed + lot size calculations fixed.

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  • 5 weeks later...

Re: [share] Triangular Arbitage EA

 

Could someone help to set this Ea

I opened only 1 graph, EurUsd H4, it opened only one trade, loss.

Does I need to open also EurGbp and GbpUsd?

Thanks

You only need to put the EA on one chart. I put it on EurGbp, but it should work fine on EurUsd as well. The biggest issue is there are multiple versions of this EA, and the various versions trade very differently from each other. One of them only takes eurusd trades and can open a bunch of them. That version makes great money, but eventually blows the account. I would love to figure out what causes the account to get blown on that version. It appeared to me, that it happened during very fast moving markets, like interest rate news, etc. Another version of this bot and the one this thread was started for, takes only two trades - one on eurusd and one on gbpusd. It then waits for it's profit mark (you set profit in EA external variable). It also sets a limit order on eurgbp just in case there is a trend against the trade. Thus, if a trend against the trades develop, it will take the eurgbp trade and you will now have a perfect triangular trade, meaning your trades will not go into any more drawdown (that's assuming the correct proportions of each pair have been taken). Then, after the trend stops and the pairs adjust, it will hopefully be able to take it's profit target.

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Guest jaet1989

Re: [share] Triangular Arbitage EA

 

I know Triangular Arbitrage can be successful. Check out this commercial Triangular Arbitrage managed fund:

 hxxp://www.arbitrage-forex.com/ 

 

This is statistical arbitrage not triangular, triangular is a risk free profit, while this is counter trend, buying when one currency is moving away from its correlated pair, good strategy, but not risk free.

 

Triangular arbitrage is almost impossible in todays markets, the market is just too efficient, if an opportunity does arise, guess who takes it????

 

Regards :)

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Re: [share] Triangular Arbitage EA

 

I know Triangular Arbitrage can be successful. Check out this commercial Triangular Arbitrage managed fund:

 hxxp://www.arbitrage-forex.com/ 

 

That's actually a martingale crap with a description designed to lure the potential newbie investor with terms that sound smart. If you inspect the results, it's trading over 25 lots at some point. If you don't see the problem with that, you're one of the potential target victims.

 

Triangular arbitrage in its original definition cannot be successful because the banks that provide most of the liquidity are pretty far from stupid.

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Re: [share] Triangular Arbitage EA

 

Triangular arbitrage is almost impossible in todays markets, the market is just too efficient, if an opportunity does arise, guess who takes it????

 

That's 100% correct. Banks have safeguards in place against it and adjust their offered liquidity rates internally before one can take advantage.

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Re: [share] Triangular Arbitage EA

 

That managed fund say they use all three pairs in the triangle...but I did not read into every little detail.

 

Anyway, the EA we have in this thread only takes two of the pairs and tries to profit with these trades first, so it's not a full triangle, unless the eurgbp trends in the wrong direction, then it completes the triangle to prevent any large drawdown.

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