Simple High Profit low Drawdown Triangular Arbitrage

@raffus @jvbJacques

Broker: Solidary Markets NZ. Demo account. Leverage: 1:100 USD. Platform: MT4

https://solidarymarkets.com/accounts/trading_accounts.

Today's results with EA 19

@artico01
That looks very good.
Once this EA can improve the slippage problem then you can make a killing with that broker.

Which account is it ?
Is it possible to send me the log of the EA ?
I would like to analyse the results and maybe the slippages.

Jacques,

A possible way to speed up the order closing process by reversing the position, a thread by Nicholishen, here in FF. I guess you know it already, just thought to share it...
https://www.forexfactory.com/showthread.php?t=701784

@eatrader75
Thanks, but it will not work for single trades or multiple symbols.

It only allows you to close multiple tickets on the same symbol for the execution time cost of one reverse trade.

In this case I open one ticket per symbol so closing one ticket in that way will not improve the speed unfortunately.
But again thanks for the link.
I'm still looking for something to speed things up and I will get there.

@jvbJacques

I'm sorry but I lost the read-only password. I send the screens with the inputs and closures of the EA (only GBPJPY & GBPUSD. USDJPY no inputs)

Maybe I can create another account to see how the EA19 works. That way I could give you read access.
Amount: 10000 USD and leverage 1: 100?

@artico01
I think there was a miscommunication.
I do not need access to your account.

I just wanted to see the logs of the EA.

You can access the logs by clicking on the EXPERTS tab and it will display the logs.
Then right click inside that tab on one of the log lines and select open.

There you will find the log files of the expert sorted by date.

If you want to you can send me that text file.
It only contains the logs of the EA.

I want to see what it did during the opening and closing of the trades.

How fast is your connection to the metatrader server ?
You can see that sometimes by clicking on the far right bottom part of metatrader.
It will show you the server you are connected to and the speed in milliseconds between you and it.

Hi Jacques,

I must be getting old. Can't even submit a post correctly.lol.
I tested this today and in the screen above it looked like the
trade opened and closed in 1 second or less. Is that possible ?

Also I'm testing in strategy tester right now. It's going slowly
but looks really impressive. Thanks for trying this...I followed
others in the past with similar ideas but end up failing long term.

I put on my VPS for next week as well.

@Geges
Yes it is possible to open and close so fast.

If it wasn't for slippage then this strategy can easily work long term.
You can see this in your strategy tester by just opening the 3 symbols and leaving to run for a couple of years.
The profit/loss stays the same and forms a straight line, except for a minute amount of swap that almost does not register.

Problem is it takes a long time (500ms to 2000ms) for metatrader 4 to open trades, even if your VPS have got a fast (5ms or better) connection to it's metatrader server.
MT4 is old and I do not think it was intended for high frequency trading like this.

MT5 seem to do better with trade execution speed, but still slow.

As I get time I will start to test on other platforms like JTrader to see if it can deliver on what it promise of high speed trade execution.

Did you attach the EA to your GBPUSD chart ?
If so then look at that chart to see the lines the EA creates.
Make the background of the chart black to see the lines better and zoom it out by dragging the right vertical price bar.

While I am looking for a solution to high speed 3 trade execution I am working on a unbalanced triangular arbitrage to maybe increase profits and counter more of the slippage.

@jvbJacques
I'm sorry for my error, but I am not a expert in metatrades forlder.
It´s is my log file.

Today with Market closed my conecction is 102 ms. Monday I will send the speed of my conecction
If I open new account in this screen appear three servers with their respective pings

Thanks

Jacques,

Got some nice results today on Solidary Markets Demo

@arico01 and @eatrader75
Looks nice.
Seems like you 2 have got different accounts seeing that the spread/commission on arico01 is way lower than eatrader75.

What account types do you two have with Solitary Markets ?

Got the same time on Global Prime another set of trades, but they're still in floating loss

I guess I've chosen the "Elite" meanwhile artico01 the "Top" account.

As soon as I find a solution to the trade delay, which causes slippage then this will really be a killer.
You are losing a lot of the profit just because of slippage.
Easily more than 70% of the profit disappears to slippage.

@Everyone
I checked the logs of EATRADER75.
Very good/(not so bad) slippage.
500ms for all 3 trades.
So it does look like slippage is very dependant on the broker and not always your connection.
I had my hands on a 6ms broker connection on another broker and it had a 2000ms turn around time for 3 trades.

Jacques,

At the end of "My Own Broker Arbitrage" MetaCoder mentioned about his fast arbitrage EA. Maybe he found something useful or this is the same as your Fix Api idea.

@eatrader75
I also do not use OnTick.
Too slow.
I also know and have partially developed a 2 legged or latency arbitrage system, but problem with latency arbitrage is that brokers REALLY do not like it.
It works, but they close your account or cancel your profits, stating that you are doing insider trading between a fast and slow broker, which it is not, but if you read the fine print then they can do what they want and you are out of luck.

You can only make profit on the slow broker, but normally only the fast broker allows it so you are in trouble from the start.

Plus it is also extremely reliant on no slippage seeing that the profit take is normally 1 pip to take advantage of the difference between the slow and fast broker.
I have seen an EA like that actually working, until I did some investigation and found that the account it ran on had almost no spread and no commission, which was not available to anyone except the broker itself, which is very suspicious and without it the EA did not work seeing that the spread alone killed it.

The advantage is that there normally is only one trade instead of 3 like the triangle and therefore 3 times faster, unless I can implement my mutli-threaded ea.

The disadvantage is that ANY slippage and you lose all the profit seeing that 1 pip profit is killed by anything close to 1 pip slippage, which can happen on the open and close side.

Also.
If the broker locks your account or for some reason your EA does not catch the trade signal in time, then it will run far into negative, unlike the triangle that does not mind.

BUT.
I would love to be proved wrong and be pointed to a broker that will allow this for I have tried it and it looks good, but without a good VPS and good spread/commission it does not work from what I have seen.

@jvbJacques

I opened demo account in November 2016. The SMFX conditions may have changed. Now it charges a commission of 2.9 per lot. Spreads very low.

https://solidarymarkets.com/

@artico01
I have checked out the SMFX standard account and it looks fantastic.
The spread/commission on the standard account is the lowest I have seen anywhere with multiple arbitrage crosses an hour.

How trustworthy is this broker ?
Have you done any trading with it and do they pay out profits, beyond what you deposit ?

Jacques,

To correct the slippage, we could add to the lots for scaling up or averaging down. But we need to reduce the original lots to have enough room for correction