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Trangular arbitrage trading


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anybody has this EA ? currently i only had thats only working with EURUSD only :(... suppose to work with eurusd,gbpusd and eurgbp...

 

here's the currently i have

 

http://rapidshare.com/files/320719017/TRIANGULAR_PRICE_CORRECTION.mq4

 

for info:

http://www.4xfx.biz/catalog/item/4173092/6264832.htm

 

nb. have doing forward test for couple of mnths and its profitable

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Found this in the code above, looks like it uses eurusd, euraud and audusd , there is no mention of eurgbp or gbpusd in the mq4.

 

Either they have a new version that uses different symbols or there advertising is misleading.

 

string gs_eurusd_144 = "EURUSD";

string gs_euraud_152 = "EURAUD";

string gs_audusd_160 = "AUDUSD";

string l_symbol_96 = gs_eurusd_144;

string l_symbol_104 = gs_euraud_152;

string l_symbol_112 = gs_audusd_160;

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Tested it and it loses all its monies eventually.

 

yeah when i backtest it currently...it makes a huge drawdown...dunno whats wrong...few hours ago seems ok...something wrong i guess...

 

anyway i got this error log...

 

2010.10.06 05:54:19 TRIANGULAR_PRICE_CORRECTION_mod EURUSD,H1: Error : 130

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yeah when i backtest it currently...it makes a huge drawdown...dunno whats wrong...few hours ago seems ok...something wrong i guess...

 

anyway i got this error log...

 

2010.10.06 05:54:19 TRIANGULAR_PRICE_CORRECTION_mod EURUSD,H1: Error : 130

 

It can't be backtested cause it is a multi currency system. Forward testing it might start out ok, but very soon it gets into large losses.

"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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The code is full of bugs and errors, forget it.

 

The principle of triangular trading sounds good in principle but does not work in reality.

While three symmetrical pairs will maintain a certain type of balanced relationship, in reality each pair can move a great deal the others.

 

A simple analogy would be while 3+3+3 = 9, 1+3+5 = 9, 4+4+1=9.

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to backtest multi currencies it needs *very* special techniques... and they are absence here

so, forget about BT

and trading arbitrage - it is possible even w/o super-duper fast connection and zero slippage and zero spreads...

 

... my 2 cents

 

 

Good luck if you can do it; but there is still leg risk.

Also:

Triangular arbitrage opportunities do not happen very often and when they do, they only last for a matter of seconds. Traders that take advantage of this type of arbitrage opportunity usually have advanced computer equipment and/or programs to automate the process.

 

In today’s Forex market, the chances for triangle arbitrage are getting rare. Even if there is one, it last only for seconds. Thus for profiting from triangular arbitrage traders need advanced trading systems, programmed for automated trading. Taxes and fees may also reduce the profit.

Edited by manganate
no quote marks - edit includes them
When mind lingers in one place efficiency is lost
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to backtest multi currencies it needs *very* special techniques... and they are absence here

so, forget about BT

and trading arbitrage - it is possible even w/o super-duper fast connection and zero slippage and zero spreads...

 

... my 2 cents

 

I have forward tested twice. Both times the account was blown. Feel free to do another medium term test and prove me wrong however.

"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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