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Risk Free Forex Arbitrage System... Possible?

  • #21
  • Jul 5, 2016 2:49pm Jul 5, 2016 2:49pm
And do you have any tips for me? I am trading this just for two month so I donīt have any big experience on this system. I want to know what I should be aware of and so on. Till now I am doing very well today again profit after yesterday free trading day.
  • #22
  • Jul 5, 2016 4:56pm Jul 5, 2016 4:56pm
Quoting UnnamedPlayr
Yes, on many markets. I also make simple intraday trades in these two FX pairs, most time in the direction of the longer term trend. AUD/CAD (because of AUD/USD and CAD/USD) or AUD/NZD (AUD/USD & NZD/USD correlation). Arbitrage in Gold-JPYUSD-Nikkei-Silver works also in the medium-term. There are some "instruments & synthetics or synthetics & synthetics" with much higher correlations (which also reveals real market information about banks and CBs) but are more complex.
Kindly explain how you trade AUDCAD & AUDNZD please. Thanks
  • #23
  • Jul 6, 2016 2:00am Jul 6, 2016 2:00am
Quoting FXTriumph
{quote} Kindly explain how you trade AUDCAD & AUDNZD please. Thanks
First i calculate the "overall spread" with 2 different pairs (with them you can rebuild the underlying).
Then for each pair i calculate its leg-spread.
Which one correlates most with the OS, i can now see if price of the underlying is expensive or cheap.

Then i only take trades accordingly to the bigger picture (how the daily or weekly trend is).
  • #24
  • Jul 8, 2016 3:51am Jul 8, 2016 3:51am
Quoting UnnamedPlayr
{quote} First i calculate the "overall spread" with 2 different pairs (with them you can rebuild the underlying). Then for each pair i calculate its leg-spread. Which one correlates most with the OS, i can now see if price of the underlying is expensive or cheap. Then i only take trades accordingly to the bigger picture (how the daily or weekly trend is).

Makes sense.

My grasp of maths is rather weak though.

Please is there a simple formula I can use to calculate the OS by just entering variables?

Or better still, is there a way to do this visually without the arithmetic?

Thanks so far UP. What you showed me in your thread changed my life.
  • #25
  • Jul 8, 2016 6:09pm Jul 8, 2016 6:09pm
Quoting FXTriumph
{quote} Makes sense. My grasp of maths is rather weak though. Please is there a simple formula I can use to calculate the OS by just entering variables?
For example the AUDNZD:
from AUDUSD, NZDUSD
the OS is: 0.5, 0.5

Quoting FXTriumph
{quote} Or better still, is there a way to do this visually without the arithmetic?
Without math it's impossible.

That's for example right now the AUDNZD:

http://www2.pic-upload.de/img/31153624/AUDNZD.png

The NZD Leg is leading or correlating since 27. May with the OS.
So i look for imbalances between them for trading decisions. ;-)
  • #26
  • Jul 8, 2016 6:48pm Jul 8, 2016 6:48pm
Quoting UnnamedPlayr
{quote} For example the AUDNZD: from AUDUSD, NZDUSD the OS is: 0.5, 0.5 {quote} Without math it's impossible. That's for example right now the AUDNZD: {image} The NZD Leg is leading or correlating since 27. May with the OS. So i look for imbalances between them for trading decisions. ;-)
Thanks
  • #27
  • Jul 11, 2016 5:07am Jul 11, 2016 5:07am
Forex arbitrage is a risk-free trading strategy that allows retail forex traders to make a profit with no open currency exposure. Which forex brokers do you know that allow arbitrage trading.?? Any answer.
  • #28
  • Jul 11, 2016 10:33am Jul 11, 2016 10:33am
nice thread
how about arbitrage with 2 server broker ?
onorebate
  • #29
  • Jul 13, 2016 1:06am Jul 13, 2016 1:06am
What you are talking about is latency arbitrage between two or more brokers (taking advantage of different quotes).
Very hard to achieve with no colocation,spreads and slippage.
Maybe you have luck when the market goes crazy after a big news event.

Over the years I've found that there is only ONE dominant arbitrage-algorithm in the FX marketplace with closing all imbalances.
It's accurate to 99% (after quantitative analysis) and works with any pair among the 8 major currencies.
I think that's a huge advantage and you don't have to play latency games.
  • #30
  • Jul 13, 2016 6:53am Jul 13, 2016 6:53am
Quoting UnnamedPlayr
What you are talking about is latency arbitrage between two or more brokers (taking advantage of different quotes). Very hard to achieve with no colocation,spreads and slippage. Maybe you have luck when the market goes crazy after a big news event. Over the years I've found that there is only ONE dominant arbitrage-algorithm in the FX marketplace with closing all imbalances. It's accurate to 99% (after quantitative analysis) and works with any pair among the 8 major currencies. I think that's a huge advantage and you don't have to play latency games....

wow this is great
i m so happy if accurate 99%

tell me more Sir , Please
onorebate
  • #31
  • Jul 15, 2016 11:54am Jul 15, 2016 11:54am
Very hard to explain, it involves a lot of math.

That's how it looks like on a 100 EUR Demo playing account:

http://www2.pic-upload.de/img/31213092/DemoTRADES.png

;-)
  • #32
  • Jul 17, 2016 7:51am Jul 17, 2016 7:51am
Quoting UnnamedPlayr
Very hard to explain, it involves a lot of math. That's how it looks like on a 100 EUR Demo playing account: http://www2.pic-upload.de/img/31213092/DemoTRADES.png ;-)

Nicccceeeeee!
  • #33
  • Oct 7, 2017 5:27pm Oct 7, 2017 5:27pm
Does anyone know anything about index arbitrage? This involves the fair value calc on futures to derive implied open of the index. This is legal and encouraged to even out market prices. There is a definite edge but I think its in the domain of HFT. I want to know if there are any PAMs ,MAMs etc that will allow me access.
Any help much appreciated.
We are all One. Be present. Be the Observer
  • #34
  • Oct 9, 2017 12:11am Oct 9, 2017 12:11am
Never heard about that, but one thing is now crystal clear that you could never avoid risk of losing in Forex, all you could do is to learn proper risk management and money management and earn good through Forex.
  • #35
  • Oct 9, 2017 8:03am Oct 9, 2017 8:03am
Trading always involves risk.
If you can't handle it, don't be a trader and do something else in your life.

Arbitrage is pretty much dead, even on the highest level it's more and more difficult to make money.
You can only compete when you have millions to buy the newest technology, etc.
That's what HFT firms do.

I wouldn't waste my time with quant. trading.

If you can smell what's cooking (bias and momentum), it's enough to make a killing in the market.
That will never die.
  • #36
  • Last Post: Oct 9, 2017 8:12am Oct 9, 2017 8:12am
Probably possible at news/gaps, but one has to be clever.
Just as with anything else.
k
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