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Arbitrage between 2 brokers

  • #61
  • Nov 21, 2011 12:20pm Nov 21, 2011 12:20pm
Quoting nondisclosure00
First, I would like to say that I have found an over-abundance of information here on FF. I hope this helps other people in their Arbitrage journey.

Now, I've included a zip file that has the necessary components for Arbitrage EURUSD between IBFX and Alpari (you can use any 2 brokers you like, you just need to remember which is which).

Instructions for installing are in the zip file. I've also included a zip file in the zip file that has the Visual Studio 2010 source code for the dll.

What I'm hoping here is that we can improve on this....

Do you also have the option to read the openorderprice from the other broker terminal inside the DLL fiel? If not is it possible to add it also.
  • #62
  • Nov 21, 2011 6:17pm Nov 21, 2011 6:17pm
How would it be utilized?

Quoting fab4x
Do you also have the option to read the openorderprice from the other broker terminal inside the DLL fiel? If not is it possible to add it also.
  • #63
  • Nov 21, 2011 6:40pm Nov 21, 2011 6:40pm
Well, they're running w/ the idea. But they're taking a huge risk. They're willing to let positions run for a while. I mean, if you've haven't seen a profit in a short amount of time, you'll have to wait a long time. AND survive the downturn in the process.

Add to that, the .exe just adds another layer and cuts down on the speed (not to mention running 10 terminals on the same system).

Quoting fab4x
Here is a system from Romania they devopled. It works well but expensive
Here is a pdf on how it works.

I think this can be reprodced buy some experience programmers

Must use these brokers
Alpari UK
AVA FX
FXCC
FxPro
FXCM UK
FX Open
Varengold Bank
Windsor Brokers
Pepperstone
AAA FX
One Financial Classic
[font=Arial]One...
  • #64
  • Nov 21, 2011 6:50pm Nov 21, 2011 6:50pm
I think I can make ScalperOne and dkwak's idea work in retail forex.

Here's what I need from the group.

1. Best Master (fastest) and best Slave (slowest) data feeds. Give me ms time for each.

2. Price trigger. What would be the best price trigger between the 2? Take a look at my code now and you'll get an idea of what I used. It's most likely the worst case scenerio, but you get the idea.

3. Time diff trigger. This is the big one. What's the minimum ms latency difference btween the 2. In other words, the master has 2ms between the terminal and server, and the slave has 20ms. 20ms-2ms=18ms. Is that enough.

4. Tick capture. I'm toying w/ this idea. how many "ticks" behind is the slave from the master. Now, if every broker had the same exact tick prices, this would be simple. And we'd all be millionaires overnight. If someone can compare candle prices on 1min charts between 2 brokers and see how close they come.

I'm willing to code this entire system. But I need help. I need some people to look into broker comparisons and some to look into price and time triggers.

I'm a coder; not a system builder. I'm not that good at putting systems together (entry/exit criteria; trade management, etc.). But I can code a system.

I think we can do this. Let's give it a shot. Anyone up for it?

PS. Everyone here gets a copy of the resulting EA files and subsequent source codes for free. Successful or not. LOL!

PPSS. If it is successful, I don't plan on selling it. I plan on releasing it here on FF w/ giving props to everyone who helped.
  • #65
  • Nov 21, 2011 8:05pm Nov 21, 2011 8:05pm
Quoting nondisclosure00
How would it be utilized?
Its used for comparison once both trades are placed in case of error. So they could be closed quickly
  • #66
  • Nov 21, 2011 8:08pm Nov 21, 2011 8:08pm
I have been running for a whole day now

see image. I made some changes in entry and closing orders. I removed the option to check spread value and made only 1 broker to SELL only and the other to BUY only. Exit when the reverse occurs
Attached Image (click to enlarge)
Click to Enlarge Name: ex1.jpg Size: 91 KB
  • #67
  • Nov 21, 2011 10:25pm Nov 21, 2011 10:25pm
Quoting nondisclosure00
I think I can make ScalperOne and dkwak's idea work in retail forex.

Here's what I need from the group.

1. Best Master (fastest) and best Slave (slowest) data feeds. Give me ms time for each.

2. Price trigger. What would be the best price trigger between the 2? Take a look at my code now and you'll get an idea of what I used. It's most likely the worst case scenerio, but you get the idea.

3. Time diff trigger. This is the big one. What's the minimum ms latency difference btween the 2. In other words, the master has 2ms between...
Hi! I'd love to offer a helping hand, but can't even get past the first download.

You mention some setup instructions in the post 1 zip file, but I found none. How can I install and test this system?

I'd love to test on ACTIVTRADES, PEPPERSTONE, HOTFOREX and AAAFX (Which are the brokers I successfully use for my regular trading systems)
  • #68
  • Nov 21, 2011 11:52pm Nov 21, 2011 11:52pm
Don't worry about those first downloads. That's a little different than what I'm trying to do here.

I'll be posting instructions soon on how to get server times and track them.

Keep posted.

Quoting acostafulano
Hi! I'd love to offer a helping hand, but can't even get past the first download.

You mention some setup instructions in the post 1 zip file, but I found none. How can I install and test this system?

I'd love to test on ACTIVTRADES, PEPPERSTONE, HOTFOREX and AAAFX (Which are the brokers I successfully use for my regular trading systems)
  • #69
  • Nov 22, 2011 7:00am Nov 22, 2011 7:00am
Quoting nondisclosure00
Don't worry about those first downloads. That's a little different than what I'm trying to do here.

I'll be posting instructions soon on how to get server times and track them.

Keep posted.
Great. Let me know how I can help. I got demo space available and live accounts with those brokers
  • #70
  • Nov 24, 2011 12:16pm Nov 24, 2011 12:16pm
One of the most interesting "system" ever... I'm also working on it Good luck!
Develop the old ways! Backtest with 25% quality... JOKE!
  • #71
  • Nov 24, 2011 12:26pm Nov 24, 2011 12:26pm
Quoting nondisclosure00
Don't worry about those first downloads. That's a little different than what I'm trying to do here.

I'll be posting instructions soon on how to get server times and track them.

Keep posted.
I can test as well currently using VantageFX but have loads of different broker MT4s installed for testing.
  • #72
  • Nov 24, 2011 2:36pm Nov 24, 2011 2:36pm
Folks, just a friendly reminder that every broker specifically forbids this type of trading in their customer agreement. When you open an account with any of them you agree to not trade this way.

Brokers take this seriously because it amounts to theft akin to insider trading in the stock market. They do look for suspicious trading patterns and will suspend your account if they think your doing this sort of thing.
You are in a maze of twisty little passages, all alike.
  • #73
  • Nov 24, 2011 10:32pm Nov 24, 2011 10:32pm
Good luck dude! Let us know how you do.

Quoting floydian666
One of the most interesting "system" ever... I'm also working on it Good luck!
  • #74
  • Dec 1, 2011 2:46am Dec 1, 2011 2:46am
Quoting nondisclosure00
Good luck dude! Let us know how you do.
Your arb method is already available:

See video: http://www.f0rexarb.c0m/access-arbitrage-in-acti0n/

change 0 to o.
  • #75
  • Dec 1, 2011 7:03am Dec 1, 2011 7:03am
I'll watch from the sidelines, as quant algo's have done this since computer proliferation and it's something retail has Bob Hope and no hope of doing compared to their funds and execution speeds; there's a reason they are all complicit in the fraud by placing their servers a few feet away from the exchange.
Politics is the womb in which war develops.
  • #76
  • Dec 1, 2011 7:34am Dec 1, 2011 7:34am
Inside the black box: the simple truth about quantitative trading

Direct Market Access (DMA) - Source / Snippet...

http://i.imgur.com/UDYfh.png
Politics is the womb in which war develops.
  • #77
  • Dec 1, 2011 3:15pm Dec 1, 2011 3:15pm
Interesting. I could probably do this based on what I've already done. Instead of using 2 brokers, using more than 2.

It would probably be easier to use Excel to short out prices that fast.

Hmmmmm, got to think about this one.

Quoting taipan99
Your arb method is already available:

See video: http://www.f0rexarb.c0m/access-arbitrage-in-acti0n/

change 0 to o.
  • #78
  • Dec 2, 2011 9:11am Dec 2, 2011 9:11am
Hi nondisclosure,

one of the broker show me this message on the terminal: EURUSD terminal_1 EURUSD,M5: Last Error on Long entry is: 130

What mean?

Do you know the most fast/slow broker for run the arb tecnique?

Is possible use this ea on multiple currency?
Thank you for your work
  • #79
  • Dec 2, 2011 10:07am Dec 2, 2011 10:07am
Quoting stevegee58
Folks, just a friendly reminder that every broker specifically forbids this type of trading in their customer agreement. When you open an account with any of them you agree to not trade this way.

Brokers take this seriously because it amounts to theft akin to insider trading in the stock market. They do look for suspicious trading patterns and will suspend your account if they think your doing this sort of thing.
Have you ever experienced such situation, say the account is closed? Do they need any proof to say "you are using arbitrage?", or just simply close your account?
This would be the biggest risk.
  • #80
  • Dec 2, 2011 8:33pm Dec 2, 2011 8:33pm
Quoting Iceworld79
Have you ever experienced such situation, say the account is closed? Do they need any proof to say "you are using arbitrage?", or just simply close your account?
This would be the biggest risk.
Yes i have had my accounts closed due to Arb trading. I developed a decent fully automated Arb trading software about 6-7 years ago and tried with several brokers. Brokers close your accounts once they find out you are arbing. If you dont believe me, then contact your broker and find out for yourself.
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