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Have your ever heard about latency arbitrage?

  • #101
  • May 28, 2017 2:12pm May 28, 2017 2:12pm
I think the creator uses Latency Arbitrage also called 1-Leg Arbitrage which uses a faster price feed as a signal to take advantage of a slower price feed.
  • #102
  • May 29, 2017 11:03am May 29, 2017 11:03am
Regqardless the kind of arbitrage - it is not working. Any order will be requoted by the broker and you won´t get any advantage.
  • #103
  • Jun 15, 2017 2:37pm Jun 15, 2017 2:37pm
Speaking from a software developer's perspective, arbitrage must be very easy to defeat. I gather that brokers use software solutions to detect and defeat arbitrage trading in live accounts. Maybe some very special non-retail traders are allowed to employ arbitrage with extremely fast and sophisticated systems. Arb appears next to impossible for us retail traders, at least for any extended period of time.
Open to new approaches.
  • #104
  • Jul 2, 2017 6:44am Jul 2, 2017 6:44am
Quoting fteller
{quote} depends from broker. If broker has anti-arbitrage plug-in based on fast feed as well, I think it is only one way to do arbitrage - Locking Arbitrage. You can find the article about anti-arbitrage plugin on iticsoftware blog. I do not remember the link. But I think if you use small diff to open and higher diff to close - it should work good. It is also good idea to trade fix api account vs MT4.
Dear fteller,
I am tested locking software, and just about to proceed to live. All the demo operation turned out to be like magic, too good to be true. (all recommended fast VPS and fast/slow broker and my VPS located in same location) but I do not expect live trade is not easy as Demo accounts..
Then found the most difficult part is finding right broker and how to make my account's life longer.
I trust you have lots of experience and knowledge, and wondering you could share your knowledge.
1. Slow broker,, we needs 2 accounts, do they have to be with 2 different brokers..? and if locking each other with 2 different broker, how can we find 2 brokers in good combination...? We are looking for the the tiniest difference in ms between fast / slow brokers,, and on top of it,, if there is difference between 2 slow brokers,, is the software still be able to find the best timing to open/close positions, comparing fast broker..?
2. I cannot have 2nd accounts with different name with broker,, I can have 2 accounts with 1 broker but under same my name. if I use 2 accounts with same name, the broker find I am using locking software for arbitrage, and make my accounts to fail..?
3. Once the broker changed my accounts to STP / NDD, locking software lose the ability to win the profit definitely..?
4. for the moment, I only tested MT4 accounts,, but would like to try fix api, or ctrader base fix api, if those has advantage. Can you please share your opinion about how fix api is better than MT4..?

I am sorry, I have lots of questions,, more and more... Thank you very much for your kind help in advance!
  • #105
  • Jul 4, 2017 11:27am Jul 4, 2017 11:27am
Quoting MetaCoder
Speaking from a software developer's perspective, arbitrage must be very easy to defeat. I gather that brokers use software solutions to detect and defeat arbitrage trading in live accounts. Maybe some very special non-retail traders are allowed to employ arbitrage with extremely fast and sophisticated systems. Arb appears next to impossible for us retail traders, at least for any extended period of time.
It is simply to defeat arbitrage but it is even simpler to put a profitable trader into A Book. That is enough to make an arbitrage strategy become unprofitable. A Book means to compete against real market. There are banks and big companies trading against you. I doubt it is possible to compete using a retail software for a few hundred bucks against someone who is tech leading and is able to hire people doing research in how to become faster every day. Those guys are not talking about milliseconds. They are faster than microseconds.

Again: If demo results would reflect in live trading - who would sell such a software???
  • #106
  • Jul 4, 2017 11:43am Jul 4, 2017 11:43am
Quoting Kanoko
{quote} Dear fteller, I am tested locking software, and just about to proceed to live. All the demo operation turned out to be like magic, too good to be true. (all recommended fast VPS and fast/slow broker and my VPS located in same location) but I do not expect live trade is not easy as Demo accounts.. Then found the most difficult part is finding right broker and how to make my account's life longer. I trust you have lots of experience and knowledge, and wondering you could share your knowledge. 1. Slow broker,, we needs 2 accounts, do they have...
If it would work, why is there no offer like: "Buy our software and pay after you gained the price"
If BJF Trading Group would thrust their own product, they would be able to sell it like that. If it is safe that you can gain what you must pay for the software why pay before earning? I don´t remember if I wrote it somewhere above - I bought their software and tested endless days and weeks and months. I did not succeed in the end. And if you ask them for help e.g. brokers you could trade on, you only get the answer that successful traders don´t share their brokers.
  • #107
  • Jul 4, 2017 1:11pm Jul 4, 2017 1:11pm
Quoting JT4xPro
{quote} If it would work, why is there no offer like: "Buy our software and pay after you gained the price" If BJF Trading Group would thrust their own product, they would be able to sell it like that. If it is safe that you can gain what you must pay for the software why pay before earning? I dont remember if I wrote it somewhere above - I bought their software and tested endless days and weeks and months. I did not succeed in the end. And if you ask them for help e.g. brokers you could trade on, you only get the answer that successful traders...
Dear JT4xPro
Thanks for your advise. Then if you know anybody who offers "Buy our software and pay after you gained the price" can you please share with us? That would be fantastic.
But I am interested in the mechanic of latency arbitrage anyway.
  • #108
  • Jul 4, 2017 4:16pm Jul 4, 2017 4:16pm
Quoting Kanoko
{quote} Dear JT4xPro Thanks for your advise. Then if you know anybody who offers "Buy our software and pay after you gained the price" can you please share with us? That would be fantastic. But I am interested in the mechanic of latency arbitrage anyway.
take it logic. if arbitrage trading with this software would gain big wins, you would not sell any of this software, because you would need all the volume possible for you. its useless scam because of a trading system possible to use in demo accounts with wins, but not possible to have big wins in real account with it (because brokers dont allow to be cheated and pay for your "no trading", "only cheating style"). and thats logic, nobody would pay if someone tries to cheat them or the broker would be out of the business and many correct traders would have tpo pay for this traders not able to use "real" trading. you pay for a software you cant use with good real profits and lose many time.
  • #109
  • Jul 4, 2017 4:25pm Jul 4, 2017 4:25pm
Quoting poundyen
On the contrary JT4xPro. Arbitrage trading goes beyond API on your pc. There is a special config that boycots your brokers trading server and feeder. I have been doing research on it now for 3 years and have come up with how best it can work. your pc must be ordered and configured here; http://configure.us.dell.com/dellstore/config.aspx?c=us&cs=04&fb=1&l=en&model_id=precision-t7910-workstation&oc=cup7910w7p&s=bsd&vw=classic...
simple fake and not possible. its so easy, its not possible in reality, so its fake. whatever someone says. its like i did see here some people who tell other they trade big amounts in news without bigger slippage, and all who know basic of market and brokers know, its not possible and a simple liar. same with this.

jt4yxpro had described perfect what will happen by using arbitrage system, so really, learn from this people who know the market basics or learn the market basics, so you dont have losing years in this useless parts of trading.

you can dream that you ruin a broker with arbitrage trading, but you can never get only close to this.
  • #110
  • Jul 5, 2017 12:24am Jul 5, 2017 12:24am
Quoting Kanoko
{quote} Dear JT4xPro Thanks for your advise. Then if you know anybody who offers "Buy our software and pay after you gained the price" can you please share with us? That would be fantastic. But I am interested in the mechanic of latency arbitrage anyway.
Hey Kanoko,

I dont know anybody who offers EAs to buy and pay later.
If you want to trade arbitrage you need to move to stock market to real exchanges like Xetra or NYSE or other marketplaces were your trades are filled against a real counterpart. There it is a common and appreciated technique to buy at exchange A for a lower price than you can sell at exchange B within the same moment. Arbitrageurs on stock markets supply markets with big amounts of liquidity. But it will be hard to succeed at that level. You will face professional market players that are way ahead of a retail traders.
If you are new at something it is always hard to compete with professionals. Never had a tennis racket in your hands and start playing at Wimbledon? Will be an interesting experience. And don´t believe anyone who wants to sell you a tennis racket that could make you win
  • #111
  • Aug 19, 2017 5:32pm Aug 19, 2017 5:32pm
Quoting JT4xPro
{quote} Hey Kanoko, I dont know anybody who offers EAs to buy and pay later. If you want to trade arbitrage you need to move to stock market to real exchanges like Xetra or NYSE or other marketplaces were your trades are filled against a real counterpart. There it is a common and appreciated technique to buy at exchange A for a lower price than you can sell at exchange B within the same moment. Arbitrageurs on stock markets supply markets with big amounts of liquidity. But it will be hard to succeed at that level. You will face professional market...
Just to report to share information, BJF software is working very good on MT4 accounts.
BJF software works good with MT4 but still no success with FIX API connection at all.. if anybody who uses BJF software could kindly share experience and knowledge to help me,....
  • #112
  • Oct 22, 2017 3:45pm Oct 22, 2017 3:45pm
Someone using the BJF system to share experience? Am I less than 30 days with the three systems listed below?

Forex Latency Arbitarge - Demo account (Working well)
Forex Locking Arbitarge - Real Account (Working well mt4 / mt4)
2 Legs Hedging Arbitarge - Real account (I did not find a good mt4 / mt4 setting - one account is in profit to another only at a loss).
  • #113
  • Edited 5:31pm Oct 22, 2017 4:15pm | Edited 5:31pm
Quoting Kp01vr
Someone using the BJF system to share experience? Am I less than 30 days with the three systems listed below? Forex Latency Arbitarge - Demo account (Working well) Forex Locking Arbitarge - Real Account (Working well mt4 / mt4) 2 Legs Hedging Arbitarge - Real account (I did not find a good mt4 / mt4 setting - one account is in profit to another only at a loss).
their bullshit systems (like all arbitrage systems you can buy) are for faking profits.
one data feed lagging broker is used, and this broker will then have all the losses. this broker who get the loss because you trade quotes, that are not any more in the market, will most of the time not pay you out, or this broker will lose on the end many money with you all the time. so having wins with arbitrage systems and mt4 brokers using and no good infrastructure is not the problem, get the money out of the broker is only possible with stupid people working in such a broker. and this will not happen so often. brokers dont have 100% sure losses to give you as present, thatswhy this slow data feed brokers have in their broker agreements often the parts that some trading style is not allowed and wins can be canceled.

BJF is knowing it. why do you think they sell this garbage? normally you would not sell this, you would invest more and more money and win all money whats possible with it. but there is not really money to win with this, the only winner is the seller of this system. dont believe the faked testimonials and reviews.

learning basics and math, before buying any programs or starting trading, is very important, it can save you many money.
or are you a commercial connected person to this BJF group? then of course its much more a problem.
  • #114
  • Oct 22, 2017 8:13pm Oct 22, 2017 8:13pm
Answering your question: I do not have any partnership / representation or commercialize BJF systems I am only consumer of their products which for me has worked well in the initial period of tests (with the BJF system).
You should review your ARB system concepts because it is fully regulated in the US and some European countries, it is just a strategy where you take market returns on a monthly basis with ARB systems.

The system can be great, the setup winning, the strategy good, but if we have a "shit dealer" behind the screen, the market becomes a "shit market" and a "shitty strategy."

Success hug.
  • #115
  • Oct 22, 2017 8:54pm Oct 22, 2017 8:54pm
Quoting Kp01vr
Answering your question: I do not have any partnership / representation or commercialize BJF systems I am only consumer of their products which for me has worked well in the initial period of tests (with the BJF system). You should review your ARB system concepts because it is fully regulated in the US and some European countries, it is just a strategy where you take market returns on a monthly basis with ARB systems. The system can be great, the setup winning, the strategy good, but if we have a "shit dealer" behind the screen, the market becomes...
you mentioned the garbage from BJF. there it always is looking for a slow data feed broker, who has to take the losses. when you trade this with a broker, this broker will have this losses, and the broker dont will trade with you any more. what do you think will the broker do with your orders?

of course you can win with arbitrage, when you invest some 100k or millions in infrastructure, but you dont use metrader 4 for this kind and have splitted liquity providers data feeds , ...

do you really know any basics about arbitrage trading? its difficult to discuss suchs thinks when you are mention winning and BJF same time.
  • #116
  • Jan 10, 2018 1:16am Jan 10, 2018 1:16am
Hi, everyone.

In last year I bought BJF Arbitrage System. I have red all their articles and instructions.
I am using VPS they recomended.
I have checked about 30-40 brokers.
But I dont have positive results.
May be Im doing something wrong.
Can anyone who gain success with their soft help me ?)
  • #117
  • Edited 5:29am Jan 10, 2018 5:15am | Edited 5:29am
Quoting Evocati
Hi, everyone. In last year I bought BJF Arbitrage System. I have red all their articles and instructions. I am using VPS they recomended. I have checked about 30-40 brokers. But I dont have positive results. May be Im doing something wrong. Can anyone who gain success with their soft help me ?)
you buy garbage software! dont fall for their demo wins or little account wins or fake wins. you did not read this thread before or other in the internet?
and winning with this software would even the easy part, selling this money out from the broker (the broker has this loss same time because of your trading style) is much more complicated.

why do you think this software is sold? because you can make so easy so many win with it? then this company would trade this programm day in / day out and would not sell it to have many many competitors, but because its only theoretical win, they sell this bullshit to beginners and people who dont like to learn basics of trading, and so cant know that it cant work with such an easy program and not many many thousands of money invested in infrastructure and even then you have big big competition.

always learn trading basics first and start trading when finsihed learning, then its more easy to judge programs and trading strategies and expert advisor, and you see that 99,99% of this sold expert advisors /trading programs is total bullshit.

and remember: many testemonials or reviews in forums or positive spoken people about this products are often only the owner of this product and they make commercial in this way to find the greedy beginner believers, who did not learn the basics already, to crushing them some money out of their body.
  • #118
  • Jan 10, 2018 5:29am Jan 10, 2018 5:29am
Arbitrage is awesome thing when you have few factors:
1. Dumb dealer who is not checking the time of trade open and close/ arbitrage is done in less then a second some times
2. Broker who is technologically in 80s

I made nice cash doing arbitrage between 4 brokers in the golden age of forex 2008-2012, but thing is brokers became streetwise....so YES u will see price difference of 2-5 pips some times between brokers but in reality you will get slippage on execution for the same amount of pips. SInce brokers claim that they are ecn bla bla but in reality they are garage companies with tendency to be bucketshops.

If u wanna try this u need to have NYD4 server, at least, on slave broker side, CME api who will read prices/ Rithmic platform is good, actually fastest in the game.
So....few years ago Alpha broker from russia was a excellent choice for arbitrage slow quotes and they cash you out.

JUst to understand dealer needs 2 sec to figure out that you were making money on arbitrage, and then he puts you in a SPECIAL group, with usual crap/slippage/spread increase etc. SO when your ea starts opening orders its gonna be a suicide.

Also...arbitrage is possible today but not in a way it was done in the past.
Help to be helped.
  • #119
  • Jan 10, 2018 5:31am Jan 10, 2018 5:31am
Quoting dukas_trader
{quote} you buy garbage software! dont fall for their demo wins or little account wins or fake wins. you did not read this thread before or other in the internet? and winning with this software would even the easy part, selling this money out from the broker (the broker has this loss same time because of your trading style) is much more complicated. why do you think this software is sold? because you can make so easy so many win with it? then this company would trade this programm day in / day out and would not sell it to have many many competitors,...
Well, if you're right, then I'm to blame, of course. So I want to be deceived and believe that such software worked).
  • #120
  • Jan 10, 2018 5:33am Jan 10, 2018 5:33am
Quoting Lazar83
Arbitrage is awesome thing when you have few factors: 1. Dumb dealer who is not checking the time of trade open and close/ arbitrage is done in less then a second some times 2. Broker who is technologically in 80s I made nice cash doing arbitrage between 4 brokers in the golden age of forex 2008-2012, but thing is brokers became streetwise....so YES u will see price difference of 2-5 pips some times between brokers but in reality you will get slippage on execution for the same amount of pips. SInce brokers claim that they are ecn bla bla but in...
yes, when you invest some 100k, your own programs and not the sold bullshit, special not this BJF extrem simple programs, many different feeds from many brokers splitted,.....then you maybe have a chance, you dont earn much, much less then with a good strategy (because of the many many competitors) but maybe for some its enough.
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