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My Own Broker Arbitrage

  • #341
  • Mar 30, 2012 1:27pm Mar 30, 2012 1:27pm
Quoting Roofx
Has anyone experimmented with this method of arbitrage:

1. Use a level2 arbitrage calculator to find opportunities
You have a example ?
  • #342
  • Aug 20, 2012 10:24am Aug 20, 2012 10:24am
I am doing it < 2 ms ( millisecond )

Quoting Ronald Raygun
@deankenny21

See the video at the beginning of this thread. That's basically what it will look like. And you can already see how much faster it is than Fielder's arb--and according to the professional programmers, my method is still slow.

I'm working on this as much as I can shooting for a release by New Years.

The main problem I'm having is reducing the time it takes to execute a full arb trade. Currently it's 8 seconds--not fast enough.

Hang tight!
  • #343
  • Aug 21, 2012 2:38am Aug 21, 2012 2:38am
Quoting stevewalker
I am doing it < 2 ms ( millisecond )
it's enough to have a arb profit ?!
  • #344
  • Aug 21, 2012 3:04am Aug 21, 2012 3:04am
speed is not all
Quoting surfeur
it's enough to have a arb profit ?!
  • #345
  • Aug 21, 2012 4:01am Aug 21, 2012 4:01am
If speed is not the most important issue for arbing, then what is ?
  • #346
  • Aug 21, 2012 4:16am Aug 21, 2012 4:16am
STP <=> STP
if system can not overcome slippage issue, there is no chance of making pips out of trades.
and speed is not the main key of doing it

Quoting natal
If speed is not the most important issue for arbing, then what is ?
  • #347
  • Aug 21, 2012 5:03am Aug 21, 2012 5:03am
are there any brokers with no slippage?
  • #348
  • Aug 21, 2012 9:48am Aug 21, 2012 9:48am
Quoting natal
are there any brokers with no slippage?
sometimes on DMA brokers but very few ms/us.. but you have a fees
  • #349
  • Sep 14, 2012 2:21pm Sep 14, 2012 2:21pm
It seems they've stopped any chance of latency arbitrage, i suspect they've centralised feeds somehow.

About 6 months ago, i saw it for myself where you'd get 10 pip spikes on a EURUSD demo account, then 10-60 seconds later, my live account soon followed - easy to scalp and even easier to get greedy.

I figured it was because the demo feeds were from co-located ECN feeds that didn't go through any brokers' black-box of dirty tricks where each for...next loop added latency to live accounts.

I gave up after MT4 build ~390 when i noticed all feeds were in sync.

Latency arbitrage was/is a brokers worst nightmare. If you get caught, there will be repurcussions; only big banks are allowed to cheat the system and front-run price with fantosecond HFT and co-location next to the exchange.

You don't need any fancy software, just download MT4 from different brokers and watch one pair across multiple MT4's to see the synchronicity of price dance from different feeds.
Politics is the womb in which war develops.
  • #350
  • Sep 14, 2012 9:44pm Sep 14, 2012 9:44pm
Quoting FiatFap
It seems they've stopped any chance of latency arbitrage, i suspect they've centralised feeds somehow.

About 6 months ago, i saw it for myself where you'd get 10 pip spikes on a EURUSD demo account, then 10-60 seconds later, my live account soon followed - easy to scalp and even easier to get greedy.

I figured it was because the demo feeds were from co-located ECN feeds that didn't go through any brokers' [url="http://www.youtube.com/watch?v=bGWAEX5xtpY"]black-box of dirty...
I think you maybe, be right
  • #351
  • Sep 21, 2012 3:55pm Sep 21, 2012 3:55pm
NYSE corrupt bastards - Latency arbitrage

Want to know how much it costs to cheat the system?

$5,000 per month.

Quote
"...encouraged a two-tier market (one for the ultra fast frontrunning professionals, and one for everyone else)."

NYSE was "getting paid by wealthy traders, those using the prop data feed OpenBook Ultra and other paid systems, to create and perpetuate a two-tiered market, all the while the regulator, i.e., the SEC was paid to look the other way."
link
Politics is the womb in which war develops.
  • #352
  • Sep 30, 2012 9:30am Sep 30, 2012 9:30am
Is there anybody who is still using this, or similar system, or somebody who is interested in this kind of trading?
  • #353
  • Sep 30, 2012 8:06pm Sep 30, 2012 8:06pm
Quoting Scythian
Is there anybody who is still using this, or similar system, or somebody who is interested in this kind of trading?
Did you even bother reading any posts?

I wrote this only a few posts above.
Politics is the womb in which war develops.
  • #354
  • Sep 30, 2012 9:06pm Sep 30, 2012 9:06pm
Quoting FiatFap
Did you even bother reading any posts?

I wrote this only a few posts above.
Quote
It seems they've stopped any chance of latency arbitrage, i suspect they've centralised feeds somehow.

How could they possibly centralize the feeds? Each dealer is independent and located in different places. They each have different liquidity providers with different spreads / prices. It sounds like you're talking about a MT4 bug fix in the newer versions that impacts MT4 users who were taking advantage of dealer latency by exploiting a bug in the older MT4 terminals.
  • #355
  • Sep 30, 2012 9:22pm Sep 30, 2012 9:22pm
Quoting FXEZ
How could they possibly centralize the feeds? Each dealer is independent and located in different places. They each have different liquidity providers with different spreads / prices. It sounds like you're talking about a MT4 bug fix in the newer versions that impacts MT4 users who were taking advantage of dealer latency by exploiting a bug in the older MT4 terminals.
I was thinking perhaps something at the EBS / Reuters layer could have filtered feeds somehow, but i'm not too familiar with the bank architecture stuff, i only know of this picture, but your explanation makes more sense.

A simple MT4 bug fix between an MT4 co-located demo ECN feed and a live account that they butcher with slippage, execution, et al via their 'manager' software.
Politics is the womb in which war develops.
  • #356
  • Oct 1, 2012 3:27am Oct 1, 2012 3:27am
Quoting FiatFap
Did you even bother reading any posts?

I wrote this only a few posts above.
Yes, I read the posts, but my question is not about your post.
Maybe you misunderstood something.

My question has 2 parts:
1. "Is there anybody who is still using this, or similar system": it means, that I'm curious about whether that there is somebody here in the community who uses this, or similar system. This is not connected to your theory.
2. "somebody who is interested in this kind of trading": it means, that I'm curious about whether that there is somebody who still deals with this problem or its solution. This is not connected to your theory.

Anyway, if you assume something, it doesn't mean that this is true.

This is not about the differences between demo and live accounts. There is no sense to compare demo and live datafeeds. Demo datafeeds are usually different than live datafeeds. If you want to get clear picture, then compare live datafeeds only!
This is not about the MT4 build numbers, and bug fixes. If a broker manipulate the quotes or the orders, then it is on server side. MT4 Terminal is just a client. It simply sends requests, and receive answers. The real work is at server-side.

And finally here is something interesting: http://www.myfxbook.com/forex-broker-quotes
Just click on a broker name on this page, and you will find a list about actual quote-differences compared the broker with other brokers!
Do you still believe, that the feeds are synchronized?
  • #357
  • Nov 5, 2012 7:43am Nov 5, 2012 7:43am
I learnt of an arbitrage platform that works really well. It works with multiple brokers and has really good features that disguises it from brokers. I cant remember the name now but i'll post it as soon as I do
  • #358
  • Nov 24, 2012 5:27pm Nov 24, 2012 5:27pm
Quoting johnny122
I learnt of an arbitrage platform that works really well. It works with multiple brokers and has really good features that disguises it from brokers. I cant remember the name now but i'll post it as soon as I do
johnny122, did you ever remember the name of the arbitrage platform you mentioned?
  • #359
  • Dec 7, 2012 8:45pm Dec 7, 2012 8:45pm
can anyone tell me tht arbitrage ea really works AND BROKER allow it?
  • #360
  • Edited 12:44pm Dec 31, 2012 11:11am | Edited 12:44pm
Could someone please PM the execution and the new version of the scripts EA for this script I agree to all the risks involved with trading this system.
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