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[req] forex arbitrage


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Sounds awesome if it does what it claims. My biggest question is don't you have to have accounts open at all these different brokers and have the ability to simultaneously execute the trades to take advantage of the price discrepencies?

 

By the way, cost is only $47 but per their affiliate page, there are upsells:

 

 

Main Product (Forex Arbitrage Software) : $47.00

Upsell 1 (Advanced Arbitrage Software) : $67.00

Upsell 2 (Manual Strategy Software) : $47.00

 

 

Who will be the one to try this and share with us before they reach their limit and close it all down? Would be a shame to miss out... is this the "big one"? I have no idea, but I wouldn't mind having an extra $3,000,000 in my account right about now!

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This seems very impractical for most people as you would have to have an account with every broker and to make the kind of money they claim you would have to be trading "huge" volume as the difference in spreads would typically be only a few pips. This is Goldman Sachs kind of trading.
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I have read about this product on another forum.They say this is a copy of another program called Pushbuttonpips, you can read about this product at forex peace army here;

 

 

 

you can download the Pushbuttonpips stuff from here:

 

 

 

i dont know if they are the same product because i have not seen ForexArbitrage but they sound remarkably similar.

 

sorry for the links but the quote function is not working.

 

yakka

Edited by yakka
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I wrote them and here's some info:

 

Thank you for your email.

 

The Forex Arbitrage system was hard to design, but it is easy to use.

Just install our software according to the manual, attach our expert

advisor to your EURUSD 1-min chart and you are good to go. The

software itself will be able to gather information from our accounts

and your account and make incredibly profitable trades!

 

You only need one broker account. We have found that you can achieve

the very best results by trading with Pepperstone broker. You can

start trading with as low as $200 and can use the link below to

download: http://pepperstone.com?a_aid=discount

 

I am sorry to say that our strategies are incompatible with US rules.

You may want to look for a non-U.S. broker that allow U.S. traders.

 

Should you have any other questions or comments, don?t hesitate to contact us!

 

Sincerely,

Forex Arbitrage

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I've had a brief look throught the download page i posted.

It's all there for you EA lovers.

One thing i don't understand, on their marketing page they say their software monitors the spread difference between the different brokers. How exactly can an EA set up on one broker platform do this?

 

Those who use EA's, let us know how this works out.

 

Wes

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Broker arbitrage is valid. Can't say if it works for forex.

 

That's how sports arbitrage works, comparing the spreads between different bookmakers.

 

 

Forex arbitrage can work, but only if there are at least 3 currencies in the ring (e.g. EUR, GBP, USD as EURUSD; GBPUSD; GBPEUR).

Edited by manganate
bad quote marks
When mind lingers in one place efficiency is lost
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Forex arbitrage can work, but only if there are at least 3 currencies in the ring (e.g. EUR, GBP, USD as EURUSD; GBPUSD; GBPEUR).

 

 

Which EAs are you talking about?

The two EAs I got from the link posted are simply trading...PSAR,RSI,Stoch,Momentum,ADX and OsMA indies

Or was it a general statement?

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  • 2 weeks later...

Hi iwjw,

It was a general statement.

There are a few threads about triangular arbitrage on II, e.g.

http://indo-investasi.com/showthread.php/1098-TriangularArbitrage%28-%29-%28-EURUSD-GBPUSD-EURGBP%29

 

There are problems:

pip spread and slippage will be against you with 3 trades running at the same time.

using different brokers may counter slippage, but they would have to be quoting from exactly the same price feed to be of benefit.

Finally, retail traders are unlikely to have direct market access; banks and the likes do, and are quick to take arb before retail traders get a chance.

When mind lingers in one place efficiency is lost
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  • 4 months later...
Forex arbitrage can work, but only if there are at least 3 currencies in the ring (e.g. EUR, GBP, USD as EURUSD; GBPUSD; GBPEUR).

 

Not correct - you can perform several different types of arbs in forex. Triangular (3 pairs) Statistical (Two Pairs) and unilateral (One pair) and a myriad of other basket approaches. The important thing is to realise the trades are based on relationships to similar highly correlated assets/pairs.

 

BTW Triangular doesn't work in the retail space due to high spreads and latency between the brokers server and client. You are competing with banks and hedge funds who invest millions on low latency algo systems which look to exploit spread differentials in nano seconds. By the time your client side system has identified a triangular opportunity the commercial boys will have been filled and will be closing out. You will get filled as the window of opportunity is closing and with slippage you'll just end up with three trades and a locked in loss. Statistical is the best retail path to follow.

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