I posted most of this in another older thread, and I've searched the forum for something combining the ProTrader Trading Platform with its Arbitrager module and nothing had been posted to date. Even web searches don't yield that much, yet PFSoft, though it has abandoned its PT Multistation, it continues with ProTrader and its added an integrated Arbitrager for FX, that I'd like to discuss for what its worth, here.
Many have said that arbitraging moments are simply not possible in FX - most were referring to Retail FX when they made those comments in the past. Of course, FX arbitrage has always meant using a third-party add-on to MT4 for the most part, in the form of an EA, which could then handle the processing. Most of that focus has typically been on Triangular Arbitration set-ups involving three currency pairs. One of the other problems has been the forced use of a single FX intermediary, which presents another layer problems, not to mention the outright policy of some FX intermediaries to disallow arbitrage trading on their platform.
I've looked at a few of these FX arbitrage threads on ForexFactory now, and many of them go back to 2006-2008. Most people were trading on a single platform and attempting to arbitrage against a single pool of liquidity provided by their retail broker. However, things change a bit when you can use a single trading platform and at the same time, connect to multiple dealing sources - multiple pools - and multiple brokers/intermediaries simultaneously. But, that just solves one problem.
You also need more than a good arbitrage scanner/calculator, you need a calculator/scanner and trade execution from within the same platform, against multiple aggregated liquidity pools where the arbitrage opportunities are automatically detected and not subject to broker manipulation. Of course, that solution must also afford you the ability to account for differences in spreads among the multiple dealing sources as well. And, it should effectively allow the trader to 'Make the Market' for arbitrage opportunities that arise at some point in the future.
Aside from attempting to build an MT4 EA to do all this, or building a full-blown arbitrage module through a custom API solution against a retail trading platform and/or the broker's back-end transaction server, the only way I know to do this from the front-end, would be through something like the ProTrader trading platform, which allows the "retail guy" access to multiple dealing sources through a single trading interface, as well as a built-in Arbitrager that automatically handles trade execution in real-time, according to the arbitrage parameters established by the trader.
An Arbitrager solution for FX, should be as fully integrated into the trading platform as possible, as time is of the essence in such transactions, Retail or Institutional. Here's a pick of the integrated ProTrader Arbitrager.
Most of the Arbitrage threads on this forum have died-out because of the problems (mentioned above), several of which seem to be solved by the ProTrader integration of its own Arbitrager into a trading platform that enables multi-intermediary access to the FX markets. So, one can arbitrage against liquidity differentials amongst multiple "Retail" FX intermediaries from the same trading platform with auto-execution of pre-selected arbitrage parameters.
I've just downloaded and installed ProTrader. I had initial problems in getting more than FXCM set-up as a Connection. After working out the details, I have FXCM, Dukascopy and MB Trading all set-up as Connections and I can login to each account (demo). I also attempted OANDA and GFT DealBook 360 demo accounts in ProTrader, but was unsuccessful in getting those two to work correctly. OANDA's error is: Access Denied, and GFT's error is: API not initialized, or not found. I was able to work through similar errors with Dukascopy and MT Trading, but not with OANDA and GFT.
Still, with the ability to access these three (3) separate FX intermediaries, I'll be able to report back on the kind of arbitrage deals get discovered by ProTrader Arbitrager and what the outcomes of the auto-trade execution were after the fact.
Likewise, if you have some experience with using this feature of ProTrader, please post comments on what your experience has been to date, or if you plan to use it, post your comments on what you discovered here. So, to be clear - this is a ProTrader Arbitrager *specific* thread. That way, it is distinguished from the older threads on arbitrage in general. I don't know of another "Retail" based trading platform that allows multiple intermediary access AND that also has an auto-arbitraging integration built-in. If you know of another, please post those comments as well.
NOTE: This is not Triangulation. Notice the "Source" and the "Destination" pair shown in the Arbitrager below. It is the same pair: EURUSD. That means that this is the rawest (truest) form of arbitrage, where trade execution is predicated on Bid/Ask differentials among two (2) different sources of dealing rates.
I can therefore, think of several upgrades of enhancement requests to the ProTrader Arbitrager, such as having the ability to include as many dealing sources as there are intermediary Connections. So, instead of having one "Source" and one "Destination" - you would simply have Multiple Dealing Rate Pools in a single Cluster with the Arbitrager continually searching for the most optimal Bid/Ask differential to use as the Pending trade set-up (read ProTrader's webpage below for information on how it sets-up the "Pending Order.")
These guys have always impressed me with the ability to code ideas into their trading platform that make sense. The bugs (however) have been many over the years and that might be why they dropped PT Multistation, but ProTrader seems to be a bit tighter and more developed.
Of course, they need to expand the supported Vendors (Intermediary Connections) list to include more Institutional intermediaries such as Barclays, as just one very good example of what I would like to see. Of course, on that level, it starts to compete with the Grand Daddy of them all, FXall. I think ProTrader could be a good middle ground trading platform for the trader beyond Retail FX, but not yet ready for prime-time Institutional. Too bad that Currenex is not this flexible, or this creative.
Happy integrated Arb Hunting! If it works, of course.
[I posted this same pick in another thread - it shows the Arbitrager GUI]
http://protrader.org/sites/default/f...arbitrager.jpg
http://protrader.org/docs/front-end/tools/arbitrager
Many have said that arbitraging moments are simply not possible in FX - most were referring to Retail FX when they made those comments in the past. Of course, FX arbitrage has always meant using a third-party add-on to MT4 for the most part, in the form of an EA, which could then handle the processing. Most of that focus has typically been on Triangular Arbitration set-ups involving three currency pairs. One of the other problems has been the forced use of a single FX intermediary, which presents another layer problems, not to mention the outright policy of some FX intermediaries to disallow arbitrage trading on their platform.
I've looked at a few of these FX arbitrage threads on ForexFactory now, and many of them go back to 2006-2008. Most people were trading on a single platform and attempting to arbitrage against a single pool of liquidity provided by their retail broker. However, things change a bit when you can use a single trading platform and at the same time, connect to multiple dealing sources - multiple pools - and multiple brokers/intermediaries simultaneously. But, that just solves one problem.
You also need more than a good arbitrage scanner/calculator, you need a calculator/scanner and trade execution from within the same platform, against multiple aggregated liquidity pools where the arbitrage opportunities are automatically detected and not subject to broker manipulation. Of course, that solution must also afford you the ability to account for differences in spreads among the multiple dealing sources as well. And, it should effectively allow the trader to 'Make the Market' for arbitrage opportunities that arise at some point in the future.
Aside from attempting to build an MT4 EA to do all this, or building a full-blown arbitrage module through a custom API solution against a retail trading platform and/or the broker's back-end transaction server, the only way I know to do this from the front-end, would be through something like the ProTrader trading platform, which allows the "retail guy" access to multiple dealing sources through a single trading interface, as well as a built-in Arbitrager that automatically handles trade execution in real-time, according to the arbitrage parameters established by the trader.
An Arbitrager solution for FX, should be as fully integrated into the trading platform as possible, as time is of the essence in such transactions, Retail or Institutional. Here's a pick of the integrated ProTrader Arbitrager.
Most of the Arbitrage threads on this forum have died-out because of the problems (mentioned above), several of which seem to be solved by the ProTrader integration of its own Arbitrager into a trading platform that enables multi-intermediary access to the FX markets. So, one can arbitrage against liquidity differentials amongst multiple "Retail" FX intermediaries from the same trading platform with auto-execution of pre-selected arbitrage parameters.
I've just downloaded and installed ProTrader. I had initial problems in getting more than FXCM set-up as a Connection. After working out the details, I have FXCM, Dukascopy and MB Trading all set-up as Connections and I can login to each account (demo). I also attempted OANDA and GFT DealBook 360 demo accounts in ProTrader, but was unsuccessful in getting those two to work correctly. OANDA's error is: Access Denied, and GFT's error is: API not initialized, or not found. I was able to work through similar errors with Dukascopy and MT Trading, but not with OANDA and GFT.
Still, with the ability to access these three (3) separate FX intermediaries, I'll be able to report back on the kind of arbitrage deals get discovered by ProTrader Arbitrager and what the outcomes of the auto-trade execution were after the fact.
Likewise, if you have some experience with using this feature of ProTrader, please post comments on what your experience has been to date, or if you plan to use it, post your comments on what you discovered here. So, to be clear - this is a ProTrader Arbitrager *specific* thread. That way, it is distinguished from the older threads on arbitrage in general. I don't know of another "Retail" based trading platform that allows multiple intermediary access AND that also has an auto-arbitraging integration built-in. If you know of another, please post those comments as well.
NOTE: This is not Triangulation. Notice the "Source" and the "Destination" pair shown in the Arbitrager below. It is the same pair: EURUSD. That means that this is the rawest (truest) form of arbitrage, where trade execution is predicated on Bid/Ask differentials among two (2) different sources of dealing rates.
I can therefore, think of several upgrades of enhancement requests to the ProTrader Arbitrager, such as having the ability to include as many dealing sources as there are intermediary Connections. So, instead of having one "Source" and one "Destination" - you would simply have Multiple Dealing Rate Pools in a single Cluster with the Arbitrager continually searching for the most optimal Bid/Ask differential to use as the Pending trade set-up (read ProTrader's webpage below for information on how it sets-up the "Pending Order.")
These guys have always impressed me with the ability to code ideas into their trading platform that make sense. The bugs (however) have been many over the years and that might be why they dropped PT Multistation, but ProTrader seems to be a bit tighter and more developed.
Of course, they need to expand the supported Vendors (Intermediary Connections) list to include more Institutional intermediaries such as Barclays, as just one very good example of what I would like to see. Of course, on that level, it starts to compete with the Grand Daddy of them all, FXall. I think ProTrader could be a good middle ground trading platform for the trader beyond Retail FX, but not yet ready for prime-time Institutional. Too bad that Currenex is not this flexible, or this creative.
Happy integrated Arb Hunting! If it works, of course.
[I posted this same pick in another thread - it shows the Arbitrager GUI]
http://protrader.org/sites/default/f...arbitrager.jpg
http://protrader.org/docs/front-end/tools/arbitrager
