arbitrage or hedge system

hello everyone, does anyone know or have understanding of arbitrage or hedge system, one of my contacts is trying to create an EA for this system.

please let us know if u have any info on this subject so that we can be directed accordingly, because my friend reckons there is scope in this which he is trying to create some of system

thank you

hi,

well if you are sure that you dont want to broaden your horizon to other trading systems other than arbing or hedging, i would suggest you not to bother with arbing. arbs are what they call 'surebets' at bookmakers. it is basically a flaw in the system that traders try to exploit. it is when at a broker you can sell higher than you buy at an other broker. it can be done but as far as im concerned there is hardly ever any 'clear' arb. statistical arbitrage might be something you are looking for, google it or do a search on ff. but i really think you should not really bother with arbing
so try to concentrate on hedging, that can be quite profitable if you do it properly, and there are far more hedge systems than arb systems. have a look at this one: http://www.forexfactory.com/showthread.php?t=160912 hedging is a good way to cover risk, but you have to use it widely. do a bit of reading on it, it has much more potential than arbing.

ohh one more thing. there is a risk-free arbitrage system that uses a broker on one side and a spread betting firm on the other side. explanation is here: http://www.financial-spread-betting....adbetting.html point is that you have to have some capital to make money and you need a volatile market in order to make it profitable.

one more thing: this is only my opinion, some people may say exactly the opposite, some may agree, so the best thing you can do is decide for yourself, but one thing is sure: you should choose one and master it

sorry this post is a bit messy, tell me if you get confused anywhere. i am very sleepy so i have just let my thoughts flow out without ordering them

regards,
csabi