Simple High Profit low Drawdown Triangular Arbitrage

Hi friends Thank you for your best system, I was searching this EA, Please i need some Help from You,

I m unable to test this EA on Meta trader tester i want to test this EA so i have active this EA on Live market?

Time frame M1? pair? Please need some help thank you

Subs. thanks and
Regards

similiar one ı have maybe u guys want to test ( theres little differences between these eas )

Hello Experts

I was reading this thread, I searched on google and this came out, because I am watching this. I have no Ideas of any coding or so.

I am watching these accounts and its Triangular Correlation, making every single day money with very very low DD.

If any expert can understand make EA.

Really appreciate what you do here.
Thank you

60304
r6pimbd
CSIGroupLtd-Live

84899440
alD1ouk
CSIGroupLtd-Live

60500
fu4gzmr
CSIGroupLtd-Live

Login only on the Phone.

Thank You

Hi D-TickTrader,
I like what I saw.
I can make an EA for it if I understand the following:

What makes it work when the batch closes positive? And what makes it failed when it's negative.
Is there any time lag between the entries? It only showed the hour and minute. I'd love to see the timestamp to the second.
Were the trades entered and closed manually or with an EA?
Your response is appreciated.

I'm just plucking these ABCD patterns in as per Mr. Pips rules and seeing how I go.

Hello Peterbabs

I have only the same access which you have just to watch the account, as I said I have no knowledge of any coding.
So I have no there more information then same as you can have to long in the accounts and just watch that with very very low DD making daily profit.

Those are not my accounts.

Thank you for taking time.

Any update for with this. Appreciate the sound ideas/theories.

Thats my EA, I build that

Hi all

Long time no talk.

Difficult to find time to work on trading, but I did do a lot and got a small update on what I have more recently did:

Look at this thread :
https://www.forexfactory.com/showthr...4#post12374184

Hi jvbJacques, could you describe how do you calculate the average profit in the first post?
Thank you!

Recently, I was watching this account closely and it seems the results is fabricated. For example it shows that the trade is closes at a specific time while it was closed few minutes later.

good morning. interesting these accounts ... but which and where do you use robots? thank you

@Alberto_Jazz
As explained.
I do the calculation on a BUY,SELL,SELL round trip and get a result.
I plot that result on the chart as a point.

I then do the calculation on a SELL,BUY,BUY round trip and get a result.
I plot that result on the chart as a point.

The average is a point in the middle between these 2 points.

I then repeat this for every tick coming in and then all the points form the 3 lines.


@geniousphp
@mps
I have seen a couple of these accounts.
I can not say if they are true or scams.
One I could figure out was a more basic version than my strategy that does not account for slippage.
Now that made me think on where it runs.
I found for that one that the strategy was run directly on the bank's servers using a ridiculously fast connection.
Basically getting to the orders before everyone else ... therefore no slippage.

Still later I found out that this was a ploy of the bank to get people to invest.
Problem is that we as mere mortals will not get this fast connection and therefore will lose out with slippage.

I am not saying that the one you mentioned does this, but just keep that in mind.
Plus why do they not share their strategy or did they and can you share it ?


The strategy is simple.
The difficult part is to make it run fast enough and not spend too much time in processing, which I achieved to combine MQ4 and java hybrid.
Then also time consuming is to automate everything so that it can recover from problems like network problems, hardware problems, missed orders, slippage, volume, ...... and a whole lot more.

Using back testing it makes a crazy amount of profit, but this is because back testing does not take into account slippage, volume and also not always so accurate.
Accuracy of data is extremely important and therefore forward testing using a real account is the best test.

I used it on crypto that is less affected by slippage.
It actually works very well on low volume brokers for the speed is slowed down if there is not a lot of trades, causing a lot of arbitrage opportunities.
Still low volume mean low profit, but profit is profit and I do not complain.

Hello jvbJacques, I really do admire your work. I try it on my own demo account, but the 3 order keep the same level of the loss for the several hours.

How long does an order take on average?

@Dreamboy10
I have not traded this live on forex yet, but swap does not play a role.
Those lines are just calculations and no real orders therefore no swap.
Only when the lines spike into profit do you actually place the orders, because then you know it will reverse back quickly.

So your orders are only in place for a few seconds at a time.

The problem comes with slippage.
The profit is low and therefore slippage can erase your profits.
I do take into account for some slippage, but you still need as fast as possible connection and a trustworthy broker.

I mostly used it on my cryto currency account on Binance for they have got hundreds of coins and therefore thousands of triangles, giving lots more opportunities, even with no leverage it is still a bit profitable.
Slippage still plays a role, but I have got a 1ms connection to them and their processing time of 30 milliseconds allows for a triangle trade round time of about 100 ms.
Slippage does still play a role, especially with low volume coins and therefore to negate it I do allow for a little longer trading time before taking a small loss if it did not recover and exclude the extremely low volume coins for slippage on them can be big where as with others you are looking more in the line of worst case 0.001% loss and best case 1% profit.

Ok I do have got a lot more trickery in my trading strategy, mostly to counter slippage and increase profits.

I have not used this on binance in a few months.
Profit was very low at about 0.1% a day, but with little risk it is prime candidate for margin trading which binance just started to do.

Unfortunately I must first find time to update my program to use the new binance api to trade with it.
So for the moment I'm just holding the coins, which has also been a bit profitable, but I write that up as luck.

Hi jvbJacques,

Thank you for your respone. I use your EA 19 at my demo account, and hire a VPS for it. But there is NO orders at all, nearly one day passed.

And I wirte an EA by myself, with the same logic, is randomly entry GU, GJ and UJ with the balance lots, but they keep losing the same amount all the time.

Can you explain it, please. Thanks!

@Dreamboy10

The EA is disabled and will not run on data after 2017.
Therefore will not trade at all on a demo account anymore.

Your logic seem different than mine.
I do not enter randomly.

I wait until GU, GJ and UJ together does not balance.
Then I trade in the direction of the correction.

Basically I enter a GU, GJ and UJ trade.(Just in a calculation, not actual trades. Call this virtual orders.)
Together they should cancel each other out and if you plot their sum on a chart you should get a straight line.

Then I monitor that line until it goes off course up or down and then only I actually open 3 orders for GU, GJ and UJ in the reverse direction for I know it must return back to the average line soon and close a few seconds later in profit.

This is an extremely simplified explanation.
Putting this in code is not so simple, but doable.
Just make sure you make the calculations as efficient as possible to not miss the trade.
All calculations can be done in less than 1 millisecond.

Works well in crypto for they become unbalanced quite a bit without the need for leverage.

Good luck

hello, javJacques, love your sharing. Can you tell more about how it work on crypto? It looks like all the crypo are pairing with USD, I don't know how to triangle them.

@fxanson

It actually works quite well with crypto.
The triangles depends on the broker u use.

If you can only form triangles using USD then it is the limitation of your broker.

Nothing wrong with limitations.

Take Binance for instance.
There I can form hundreds of triangles, even using just one base currency.
If I remember correctly I could get about 600 triangles using just TUSD as my base currency seeing that most cryptos intersect with TUSD (which is basically USD without tax and swap)

Triangles without leverage in crypto is actually way simpler than in forex.

In forex you have to do quite a bit of calculations to determine what the resulting price would be depending on whether you go long or short and how many longs and shorts you must take ex...
Plus there is the swap to contend with.
Also the dreaded slippage, which is made worse on bucket shop forex brokers and brokers that does not give you access to the actual order book .... grrr.. Crypto really opened my eyes to the scam that is forex brokers.

In crypto it is as simple as just have multiple wallets.
Hundreds of wallets in fact when looking at a broker like binance.
Only your base wallet (say the TUSD wallet) contains your funds.
I normally have got multiple base wallets for I like BTC and ETH also a lot.
All your other wallets are empty. ZERO nada, nothing, full of dust (really .. dust can be valuable too.).
Do not worry about having a wallet in a shit coin currency for you will ultimately store no funds in it.
The wallets are just pathways to link currencies together.

Then the calculation simplifies in that you just calculate what the resulting funds would be if you transfer your TSUD to another wallet say B then to another wallet say C and then back into TUSD using the current market prices.
If the result is that you end up with more TUSD than what you began with then do the trade.
Just make sure to account for trading cost and some slippage as it takes time to make the 3 trades.

Do this for all 500 wallets forming exponentially more triangles within a spit second.
I could get it down to taking about 1 to 2 milliseconds to scan all prices for all wallets and prices.
This is using the slowest free amazon server I could finds, so a faster server should be ... faster
I make do with what I got ...

The slow part is that trades take time.
I could speed this up also using my multiple base wallets and only trading triangles touching 2 more of my wallets, therefore I can do multiple trades at the same time for I do not have to wait for trades into wallets already containing currency to complete to trade the funds out of those wallets.
At most the trade time is the time it takes to do 2 trades, even with round trips through 5 wallets.
( Not a triangle anymore, but o well , in the world of triangular arbitrage everything is a triangle, even a circle. )

Also note that when I say triangles I do not really mean just 3 wallets.
I sometimes trades 4 or 5 wallets round trip if the profit was good enough, but that was slow so the profit really needed to be good or those round trips had to touch multiple of my funded wallets.

Another advantage, which eludes me with latency arbitrage is leverage.
Triangular arbitrage works very well with leverage so even a very small profit can be increased with leverage, whereas leverage does not work across brokers for latency arbitrage.
A loan might work if you can get a loan in the currencies traded with latency arbitrage.

Still even in this simplified state it is a very complicated strategy.
Takes a lot of time to code it and also catering for all other real world problems like internet problems, slippage, broker problems, ex....

Latency seem to make more profit and is MUCH simpler in its base format without leverage.
Also latency have got an upper limit which is linked to the liquidity available in the brokers you use and the amount of funds you have, plus no leverage, which triangular does not.