Need Triangle Arbitrage Calculator & indicator for MT4 | Forex Factory

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Need Triangle Arbitrage Calculator & indicator for MT4

  • #1
  • First Post: Aug 21, 2010 11:05pm Aug 21, 2010 11:05pm
I need the Triangle arbitrage calculator and the Indicator for MT4 platform. The indicator should give the exact calulated value on any timeframe in real time. I need to use this and test to do arbitrage trading. I have read thru many post to know that arbitrage trading is not possible for a retail investor. But still my instinc says that we can make small profits. Please help me with the indicator.

Eg: at a certain time this indicator should calculate
the values of (Eurusd * usdchf) / Eurchf

Regards,
Winsome.
  • #2
  • Aug 21, 2010 11:18pm Aug 21, 2010 11:18pm
I will tell you now that it won't work.

Lag, slippage, and spread will eat you alive.
  • #3
  • Aug 22, 2010 12:05am Aug 22, 2010 12:05am
Hi Ronald,
Thanks a lot for your reply!!
I want an MT4 indicator which plots the Tri arb in a real time basis so that i can do my research and exploit it.
My plan of attach is to use the forex rebates and close whatever the position i open by covering the spread.
I have tried to attach many indicator posted in different forum and none of them are working in M1 M5 M15, time frames.
Using the forex rebates i think we can use this tri arb to make few decent Profits. Please let me know your thoughts on this.
Regards,
Winsome.



Quoting Ronald Raygun
I will tell you now that it won't work.

Lag, slippage, and spread will eat you alive.
  • #4
  • Aug 22, 2010 7:06am Aug 22, 2010 7:06am
Even with the rebates, it won't work.

Brokers are privy to this information and may possibly be doing it themselves.

If you really want to to triangular arb, you need direct interbank access.
  • #5
  • Aug 22, 2010 11:14am Aug 22, 2010 11:14am
Direct Interbank access means ECN?

Regards,
Winsome


Quoting Ronald Raygun
Even with the rebates, it won't work.

Brokers are privy to this information and may possibly be doing it themselves.

If you really want to to triangular arb, you need direct interbank access.
  • #6
  • Aug 22, 2010 1:50pm Aug 22, 2010 1:50pm
No.

Direct interbank means I am the liquidity provider.
  • #7
  • Aug 22, 2010 9:12pm Aug 22, 2010 9:12pm
Can i use the alphari pro account or any insitutional ac for this?

Quoting Ronald Raygun
No.

Direct interbank means I am the liquidity provider.
  • #8
  • Aug 22, 2010 9:25pm Aug 22, 2010 9:25pm
http://www.citifxpro.com/Pages/default.aspx
http://www.jpmorgan.com/pages/jpmorg...fixedincome/fx
http://corp.bankofamerica.com/public...cts/fx/default

To name a few
  • #9
  • Aug 22, 2010 9:33pm Aug 22, 2010 9:33pm
If i use any one of them can i able to make Profit ronald?


Quoting Ronald Raygun
http://www.citifxpro.com/Pages/default.aspx
http://www.jpmorgan.com/pages/jpmorg...fixedincome/fx
http://corp.bankofamerica.com/public...cts/fx/default

To name a few
  • #10
  • Aug 22, 2010 9:38pm Aug 22, 2010 9:38pm
I don't know.

I've tried triangular arb when I was at RBS, didn't really make that much money.
  • #11
  • Aug 23, 2010 12:15pm Aug 23, 2010 12:15pm
Hi ronald,
Can you please share your Strategy? we can think about how we can improvise it.

Regards,
Winsome

Quoting Ronald Raygun
I don't know.

I've tried triangular arb when I was at RBS, didn't really make that much money.
  • #12
  • Aug 23, 2010 1:12pm Aug 23, 2010 1:12pm
Triangular arb is simple.

Take pair A multiply by pair B, then get the synthetic pair generated, and compare to the current price. If there is a significant difference, trade into the triangle.

The problem is you have to pay spread against three pairs, and thus need to make up the collective spread.
  • #13
  • Aug 23, 2010 1:13pm Aug 23, 2010 1:13pm
Hey!
You need indicator which will write number like 0.999799489 (=1.26796*1.03902/1.31770)? If soo email me.
Bye!
  • #14
  • Aug 23, 2010 9:12pm Aug 23, 2010 9:12pm
can you please let me know if you are making profits with the strategy?
Quoting Kovactrader
Hey!
You need indicator which will write number like 0.999799489 (=1.26796*1.03902/1.31770)? If soo email me.
Bye!
  • #15
  • Aug 24, 2010 1:50am Aug 24, 2010 1:50am
I never try something like that, but I write indicator for you.
Bye!
  • #16
  • Dec 24, 2010 1:56pm Dec 24, 2010 1:56pm
I have a question...
You are going to Sell Eurusd, Long Eurchf and sell usdchf in order to make a triangle arbitrage and to catch a small profit of EUR. At the end you will have 3 open positions correct? How are you going to close those position with no loss?
By going long Eurusd and sell EURCHF and USDCHF you could easy close those positions with loss.
  • #17
  • Mar 7, 2011 4:57pm Mar 7, 2011 4:57pm
Quoting Ronald Raygun
Even with the rebates, it won't work.

Brokers are privy to this information and may possibly be doing it themselves.

If you really want to to triangular arb, you need direct interbank access.

Ronald, your partially correct in needing Direct Market Access. I wrote an article in E forex back in Jan 2010... that focused on such. I've also written test calculators and live multi threaded microsecond technology that trades triangular arbitrage.

It is possible with brokers that allow odd trade sizes to trade triangular as long as the account/trades are netted out and not needing to be reversed.

Ive built the systems that work. Calculators show potential.. but only about 10 percent is viable. Broker skewing seems to identify the potential, but when it comes time for trading it its all based on the brokers last look.
  • #18
  • Last Post: Mar 7, 2011 5:01pm Mar 7, 2011 5:01pm
Quoting Ronald Raygun
No.

Direct interbank means I am the liquidity provider.

Direct 'to' interbank pricing means you have DMA.. direct market access. Only available whom are 'eligible contract participants'.. i.e. sophisticated investors with over 10M in net worth/capital.

But without such, it does not mean your not eligible for interbank pricing... and certainly you can verify your prices through your broker are valid and reasonable through direct data services.
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