Mysterious "arbitrage reverse" EA from RUSSIA

Found on MT site: http://translate.google.com/translat...om%2Fru%2F1060

Original article in Russian, the translation isn't really making sense to me can anyone else understand how it works?

Update 10/16/2011: Attaching an updated version with some bugs removed.
ArbitrageReverse_1.1 (LotsDivider).mq4

not shy about taking trades

Started experimenting using just 2 pairs, eur/usd and usd/chf/

Another key addition, using the attached Ea to "prune" trades that are $20-$25 or so in profit. I'm using 20 in the first 3 fields and 0 in the third to get these results so far tonight.

Blud4oil , are u trying them on demo ?

The trades you showed with the Detailed statement is a Backtest , or you traded them on demo ?


By the way you have any idear how and why the trades open , which signals it uses etc. ?



PS : Sry im new here , if im getting out of line , pls tell me

its garbage dont trade it. crappy wink martingale piece of crap

Making a thread about a system ,

And then saying its Garbage , well it shows me one thing .

That you my friend are a guy i can trust , not alot of people would actualy say the system they found is crap .

Thank you ,

And all this after a whole day and a half of testing... imagine if you had contained your excitement for just a little longer. Then we wouldnt have had to hear about it at all...

Hey Guess what?!? I just found the next best thing to sliced bread....


...just kidding!

Fair enough, maybe I overreacted by deleting it. But I am just so sick and tired of EA's that do not seem to work or are poorly documented. I repost it with the following WARNING:

I have no idea how this thing works, as always assume it could blow an account on the wrong type of pairs. DO NOT USE ON 1 MINUTE TF right now I am experimenting with 5 min TF using usd/cad and nzdusd.
USD/CAD and NZD/USD have what's called a COINTEGRATED statistical relationship that can be used as a basis for dollar neutral trading.

Also not sure of the logic used to exit losing positions. Maybe the most off the wall thing about this EA is that it seems to buy when price falls and sell when it rises. It's either counter-intuitive and a contrarian masterpiece, or a piee of crap as I mentioned before. Let's all test it and see how good the bread is!. to get attached resulrs i used 5 as the value for all settings in the above close orders ea

.

Traded tokyo/euro session.



Could have shut the whole thing off before NY but wanted to see what it would do during consolidation. Not quite as good, have a $25,000 total profit with $8000 current drawdown. I've got a low latency VPS in NYC with a very local link to fxcm, so expect milage to vary without a proper setup for high frequency trading.

If anyone can figure out why it only buys or sells on certain pairs that would be awesome.

And this was on a 1 min TF for eur/jpy and gbp/jpy. I know earlier I said not to use it on 1 min., but I really have limited understanding when it comes to how this operates (obviously).

Have been getting good results on this EA, though it's actions vary greatly depending on what TF you put it on and which pairs its being used on at the same time. These results are for E/J 1 min TF.

If anyone cares to disect this thing, that would be awesome. The "begin price" variable seems to be some kind of demarcation area between buying and selling, you'll notice above that price it sells, below and it buys. But there's got to be more to it than just that, right?

Still not sure how the stoplosses are set. Still using the above take profit EA to harvest my money.

Maybe this is nothing more than a directional strategy, as in, guess the overall trend direction you win, otherwise you lose.

To that end.. I'm using this (free demo) proprietary platform called pathfinder, it's DMI indicator blows away anything provided by metatrader, plus you can see currenex order flow from multiple liquidity providers.

I'll look at the EA and see what I come up with. All my EA skills are self-taught but I'm getting better everyday.

What settings did you all use? I can't even get it to work.

The .set file in the above attachment was what I used. Be aware, the begin price is the whole key to getting this thing to enter trades. What TF are you using? To test it, set the begin price only 3 or 4 pips above or below the price and wait for price action to cross that point. you should see it either buy or sell based on. My advice, wait till next week when the trends start to take shape. Focus on the 4 hr. e/j and determine a key support/resistence area. This can be a pivot, moving average cross, fibos etc.. As mentioned, I'm using a 3rd party platform and am primarily using a Directional Movement indicator and currenex order flow to interpret where I think price is gravitating towards.

Recently I found this nicely performing EA based on Murrey Math -> http://www.forexfactory.com/showthread.php?t=297805 (though I keep getting trade errors so just using demo for now). You could potentially use one of these extremely overbought/oversold as a price point for the begin price in the Reverse Arb EA. I will start doing this next week and post my settings.


Anyway. if you want to see it really take off, put it on 1 min e/j and g/j when the market is moving. Also make sure to run the close open order EA posted earlier. I set this thing at "10" for all settings.

Going forward, probably a good idea to start using a swiss army EA to manage open trades so stop losses can easily be set not just profit.

see attached

Very impressive,
Thanks for sharing the experience,

Lietuve

going to try this anew using the combination of arb reverse ea and take profit manager in concert with some new manual systems I've been trading.

Feel free to try this out and let me know if you have questions. Let's have another 25 grand night, no really. I made the attached report when it was still only at $21,000 and $1,700 drawdown.

Consider this:



This is a chart of the US DOLLAR SPOT INDEX. That's right, not the dollar index future. Liteforex's version of metatrader on demo provides these tradable indeces on each major currency. Finally, you can understand currency strength in absolute terms, not in terms of another currency if that makes sense. CICR is where I learned about this:

http://www.forexfactory.com/showthread.php?t=317893

overlay is gbpjpy.

Sames goes for the correlation indicator. It showing an index value, notice the yellow and green are usd and yen are correlated. Once they drop below the zero level see the carry trade shoot up. I think this would be an ideal scenario to unleash the EAs.

http://www.liteforex.com/downloads/mt4/

This sort of sounds like what I'm trying to accomplish, but is initiated manually, but look forward to tinkering with the snowball.

https://sites.google.com/site/prof7bit/snowball

Can someone amend this EA so that it can open mini lots instead of 1 standard lot? First time I see an EA with so few variables that it's impossible to tell what type of indicator it uses to open trades.

Does it make a difference if you set the begin price above or below the current price? Or do you have to decide on a directional bias before setting the begin price?