DislikedNow this throws a monkey wrench into what metaquotes told me.Ignored
I'll see if i can do that later today
Arbitrage with no-interest broker 147 replies
eur/usd arbitrage broker? 4 replies
does you broker ban arbitrage on manipulated price quotes? 2 replies
My idea for broker arbitrage 13 replies
Broker arbitrage BIG TIME 4 replies
DislikedNow this throws a monkey wrench into what metaquotes told me.Ignored
DislikedI'll see if i can think of a way to demonstrate this without setting up an overly complex test - i guess it should demonstrate a blocking OS call - while using the Win32 API to access the current thread. AT least we could then get the whole picture - I could easily be mistaken as i was chasing effect rather than cause when i implemented the system
I'll see if i can do that later todayIgnored
DislikedWhat I find most bothersome is how some people don't read the instructions they are given.
To those who whine that it won't work, build the system and prove me wrong. Stop speculating. I'm here busting my ass trying to prove to myself whether or not it will work, and when it's done I will release it
[center]for free.
[left]Your collective discouraging comments are not constructive to this thread. It's like I tell my staff, "Don't come to me with problems, bring solutions too."
Further:
To...Ignored
DislikedHello,
Ronald, you're a genius and everybody appreciates your hard work and the fact, that you're releasing it for free is even more amazing. But arbitrage will bring you all trouble or even get your positions cancelled/account banned. Brokerages know what is going on, trust me. I can tell that from my own experience.
RegardsIgnored
DislikedTo a lot of folks in the forex world, arbitrage is using a fast broker's feed to predict a slower broker's feed.
That's not what I'm targeting.
Arbitrage requires buying in one market, and selling in another simultaneously. In this case, we are looking for two brokers with two different prices for the same pair. If the buying price at one broker is less than the selling price at another broker, then if you buy from the buying broker and sell at the selling broker, you turn a profit.
Given the nature of retail forex, you cannot simply...Ignored
Dislikedstill run at demo, sometimes master script must be reloaded or drag to chart again, because stopped/hangs
today startIgnored
DislikedRR,
From what i have seen , the quoted price difference (atleast with retail bucketshop brokers) is almost always caused due to one of the brokers running a slow feed. Or their prices not refreshing or reacting fast enough during news events. This is normally tagged as lag trading with these brokers and more than likely causes them to cancel the profits. I had a pretty decent arb system developed about 4-5 years ago that i used for a little while on some of these brokers until they cancelled out my trades.
I am pretty sure you will be running...Ignored
DislikedBrokerages have their radars set for arbs, believe me. Now, the bad part is that you're going to get banned like card counting blackjack players do - for something, thats not strictly speaking illegal/forbidden. But I guess that makes you undesirable. Casinos, brokerages don't like to be taken advantage of, no matter what.Ignored
Dislikedhow can the broker prove that you can see the other end of the interbank and are scamming them with this knowledge?
To me this seems very hard to prove in this instance.Ignored
DislikedIts not difficult to detect, but they might only really feel it with larger lot sizes when they MIGHT choose to hedge the positions. They would persistently find it difficult to hedge the 'hot potato' they were passed (if they were a slow broker the price would have moved) In that way it appears more like an institutional broker position - and they have no problem spotting those. Even if they didn't actually hedge the trade they would see the price consistently moving away just after the position was opened - software can spot that easily.
To disguise it you might be better waiting for the position to reverse - which it would in many cases - and then close at a loss on the 'slow' broker (and a win on the other broker) . Then you would have a mixture of wins/losses that would be more convincing. After all it MAY be only when they consistently lose that they take notice. This might also help in flattening the equity curve which will wander about as the net position moves between the brokers - its the equity 'pump' i mentioned some posts ago. In fact you might manage to stack the equity so that you LOST on the slow broker overall - then they would be happy
Ignored
Dislikedand other than the broker possibly getting upset, are there any actual legal implications to playing an arb strategy like this? thanks.Ignored
DislikedArbitrage requires buying in one market, and selling in another simultaneously. In this case, we are looking for two brokers with two different prices for the same pair. If the buying price at one broker is less than the selling price at another broker, then if you buy from the buying broker and sell at the selling broker, you turn a profit.Ignored