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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

Attachments: My Own Broker Arbitrage
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My Own Broker Arbitrage

Quoting Raisefamous
Hi,

Can somebody clarify this please.

Suppose i have following prices from different broker for EUR/USD buy - 1.2929 and EUR/USD sell - 1.3001 So i have an arb opportunity. I buy on one side and a sell on other. Sread is 2 pips. Price moves 5 pips up, i have +3 on the buy side and - 7 on the sell side. Where is the profit? Can somebody please explain it more widely, how is the profit generated.

The arb is 'captured' in the initial 2 deals - you must BUY in one account at a price LOWER than you SELL in another account - in excess of the commission you must pay. Thats why it is difficult to arb - the bid/offer OVERLAP on two opposing brokers must be in excess of all commission - on EU around 0.5-0.7 pips at best (remember you have to pay commission on both brokers)

You then leave the hedged position open as long as you like - because it is hedged the net position will not increase or decrease (subject to varying spreads and widening that may differ)

The equity on EACH account will vary but not the NET position across the 2 accounts. - you have 'captured' a couple of pips - now you need to 'materialise' them

At some time later you can close the positions TOGETHER and with a bit of luck you 'materialise' your couple of pips profit (but remember one account will be higher in equity, slightly more than the other account is lower in equity)

The net position does not change over time - it is fully hedged, but ACROSS the broker accounts. You still have to be careful. If, while the position is open, the price goes up 1000 pips - one could could hit its margin limit (whilst the other registers loads of profit) so you need to decide when to close the hedge position - Perhaps a good time would be when it is QUIET (so less slippage)
Quoting w177
i think it's really cool what ronald had done here, yet not profitable, then how jasonfielder get profit??when arb's what we talking about here.
i'm newbie @forex thing, just googling about this stuff and read ,want to ask ronald which want's better arb or corelation pairs ex eurusd buy ,another pairs sell (i don't know what pairs) that against eurusd and in the same broker and terminal,which want more profit?thank you.sorry my english bad
Currency pair correlation changes on a day by day, even minute by minute basis.Mixing an arb with correlated pairs is playing with fire because an arb tends to use higher sizes to materialise the small pips captured. If a correlation breaks you could be slaughtered

Once upon a time USD/CHF & EUR/USD were heavily correlated - the cross EUR/CHF was not expected to move much - thats all changed nowadays

AUD/USD, USD/CAD are correlated when commodities move
NZD/USD, AUD/USD are correlated when risk moves
EUR/USD, AUD/USD is correlated when politicians don't interfere ;-)
Oil is correlated to USD/CAD - sometimes !
Quoting w177
i think it's really cool what ronald had done here, yet not profitable, then how jasonfielder get profit??when arb's what we talking about here.
i'm newbie @forex thing, just googling about this stuff and read ,want to ask ronald which want's better arb or corelation pairs ex eurusd buy ,another pairs sell (i don't know what pairs) that against eurusd and in the same broker and terminal,which want more profit?thank you.sorry my english bad
Jason never proved his system with 3rd party live statements.
i have yet to find anyone on peace army or anywhere brag about live pips. so i think Jason scammed everyone so far
Quoting Ronald Raygun
What 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:...
Thankyou!
WARNING: Don't follow me as I'm just learning
are my setting right for master?????


3 pip diff = make trade
close on 3 pip profit
Attached Image
Quoting Perky
are my setting right for master?????


3 pip diff = make trade
close on 3 pip profit
No with this setup close profit 2pip..
In your example, there is no arbitrage opportunity.
The bid from one broker has to be higher than the ask from another broker to create the arb opportunity.

Quoting Raisefamous
Hi,

Can somebody clarify this please.

Suppose i have following prices from different broker for EUR/USD buy - 1.2929 and EUR/USD sell - 1.3001 So i have an arb opportunity. I buy on one side and a sell on other. Sread is 2 pips. Price moves 5 pips up, i have +3 on the buy side and - 7 on the sell side. Where is the profit? Can somebody please explain it more widely, how is the profit generated.
Quoting FxSwordfish
I don't know about Jason Fielder's EA. I have statements from live accounts using another arb EA. PM me if you want a copy. How can you tell they are live accounts? A demo account has different account numbering system than that of a live accounts. This is common knowledge.
I was only speaking about Jason's arb $2k system. I have no doubt that there are other arb systems working. I just could not see paying 2k for one that had no proff it worked live.
And still there is no postive rantings about how well jason's arb system works. I can't find it.

RR is close, just has a few bugs in closing arbs.
Quoting tommbstone
I was only speaking about Jason's arb $2k system. I have no doubt that there are other arb systems working. I just could not see paying 2k for one that had no proff it worked live.
And still there is no postive rantings about how well jason's arb system works. I can't find it.

RR is close, just has a few bugs in closing arbs.
I agree. I don't see anyone who would shell out $2K for a system that requires the trader to click a button when there is an arb trade. Some arb opportunityies only last 6 seconds.
Quoting FxSwordfish
I don't know about Jason Fielder's EA. I have statements from live accounts using another arb EA. PM me if you want a copy. How can you tell they are live accounts? A demo account has different account numbering system than that of a live accounts. This is common knowledge.
you said u have it, you sale it or used it, if u use it why u don't give us proff, if u sale it why u didn't tested ur self cause it's more easy to sale with ur testimony, are u doubt it to???http://www.forexfactory.com/images/icons/icon6.gif peace
Be careful with this Arbitrage thing. Some brokers don't pay out with standard - noECN brokers... yes the ones with the dealing desk. I'm not sure about doing it with a ECN account is better.

A friend of mine have his own Arb EA. He placed $500 in the account and got it up to almost $24,000 about a month later. Then he tried to withdraw. The broker then placed his account into investigation. Following canceled and kept ALL profitable trades. Then banned him.

I would like to know if this would have been a happier ending with an ECN broker because there would be no dealing desk and everybody wins.

Quoting ForexPlex
Be careful with this Arbitrage thing. Some brokers don't pay out with standard - noECN brokers... yes the ones with the dealing desk. I'm not sure about doing it with a ECN account is better.

A friend of mine have his own Arb EA. He placed $500 in the account and got it up to almost $24,000 about a month later. Then he tried to withdraw. The broker then placed his account into investigation. Following canceled and kept ALL profitable trades. Then banned him.

I would like to know if this would have been a happier ending with an ECN broker...
Your friend should seriously consider opening it at a STP/ECN broker
Forex brokers real time discount - visit Abundance trading group. com
First off there would be some blood on my hands after keeping my hard earned money. How ever it was earned. Every broker in the building would need dental work. Even the janitor if I was still mad.

Second.... He's a genius can he do it again...
Quoting w177
you said u have it, you sale it or used it, if u use it why u don't give us proff, if u sale it why u didn't tested ur self cause it's more easy to sale with ur testimony, are u doubt it to???http://www.forexfactory.com/images/icons/icon6.gif peace
I am not a vendor. I am not selling anything. I am a user (not Jason Fielder's EA). Sorry, I cannot discuss commercial EA here - rule #3. Just want to comment on two misconceptions.
1) Arb works in live accounts. You'd better believe it. The profit is 10% of that from trading the demo accounts.
2) Brokers welcome this type of EA (not latency arbitrage) because customers trade more often. Trades last 3, 5, or even 30 minutes that allow the broker to hedge. This is a fact, not a theory.
Does RR arb system works on a live account? or it still under development?
Quoting FxSwordfish
I am not a vendor. I am not selling anything. I am a user. Sorry, I cannot discuss commercial EA here - rule #3. Just want to share two misconceptions.
1) Arb works in live accounts. You'd better believe it. The profit is 10% of that from trading the demo accounts.
2) Brokers welcome this type of EA because customers trade more often. This is a fact, not a theory.
So are you using the jason field ForexArb? Or another? Your own?


No RR's is not ready for live yet. EA has trouble closing trades.

I suspect this Arb idea will only work well with ECN/NDD brokers. I know most of these types of brokers want a $2000 min to open account.
So by my math if you need 4-6 brokers to find good arbs well.... you can figure out start up cost.
Yes, brokers with dealing desk can manipulate the prices, and most of them take profit from your loss, not from the spread or commissions. So if you make profit, then they will lose. I have a few similar experiences with these kind of brokers.
Here is a good cartoon about this:
http://media.dailyfx.com/plus/dealin...toon-final.flv

Theoretically the price manipulations of this kind of brokers would mean more arbitrage opportunities. The only problem is that these brokers usually aren't reliable (problems may be with not just strange quotes, but slow execution speed, big slippages etc.), and it may cause problems when you want to withdraw your money, as ForexPlex wrote.

Quoting ForexPlex
Be careful with this Arbitrage thing. Some brokers don't pay out with standard - noECN brokers... yes the ones with the dealing desk. I'm not sure about doing it with a ECN account is better.

A friend of mine have his own Arb EA. He placed $500 in the account and got it up to almost $24,000 about a month later. Then he tried to withdraw. The broker then placed his account into investigation. Following canceled and kept ALL profitable trades. Then banned him.

I would like to know if this would have been a happier ending with an ECN broker because...
Quoting FxSwordfish
I am not a vendor. I am not selling anything. I am a user (not Jason Fielder's EA). Sorry, I cannot discuss commercial EA here - rule #3. Just want to comment on two misconceptions.
1) Arb works in live accounts. You'd better believe it. The profit is 10% of that from trading the demo accounts.
2) Brokers welcome this type of EA (not latency arbitrage) because customers trade more often. Trades last 3, 5, or even 30 minutes that allow the broker to hedge. This is a fact, not a theory.
Hi FxSwordfish

is that your software that you developed? or purchased it somewhere?

How many brokers does one need to make such software create enough opportunities to make it viable.

I dont think it will be possible to have arbs with the major currency pairs... most probably most arbs are not with the top 8 (e.g USD, EUR GBP AUD CHF etc...)...

I presume that most trades with this kind of software will be less than 5 pips ?

any view on this?

By the way I havent seen RR commenting on progress with his software ... do u think he changed his mind?
Quoting natal
Hi FxSwordfish

is that your software that you developed? or purchased it somewhere?

How many brokers does one need to make such software create enough opportunities to make it viable.

I dont think it will be possible to have arbs with the major currency pairs... most probably most arbs are not with the top 8 (e.g USD, EUR GBP AUD CHF etc...)...

I presume that most trades with this kind of software will be less than 5 pips ?

any view on this?

By the way I havent seen RR commenting on progress with his software ... do u think he changed...
I am using a commercial EA but cannot disclose it or I'll get infraction. Google it and you'll find it.
Major pairs are the best for arb in contrary to what you think
You need at least 2 brokers if you know who they are. Normally, 5-7 brokers are the best.
Profit ranges from 1-3 pips. 30-60 pips per day is realistic
RR is a smart man. He is onto something great. Hope he doesn't give up.
Hi FxSwordfish

first of all thank you for your reply.

1. If it is an EA which is commercially available why would u be in breach of anything ... surely the developer of the software would be more than happy to sell more of it.

2. If the arbs are worth 1-3 pips I presume that both the IN & OUT trades of of both legs of the arb are fully automated.

3. Don’t u get re-quotes and surely with such a small margin (1-3 pips) the knock u take with re-quotes eats deep into your profit... just out of curiosity how often does it happen to you (re-quotes) ?

4. Are u generally happy with this EA which u r using... how long have u been using it ?

Kind Regards
natal
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