Arbitrage Pricer ! what strategy is ?

Discussion in 'Automated Trading' started by WDxGANN, May 28, 2009.

  1. WDxGANN


  2. TraDaToR


    What's the fuck? It's is crazy.
  3. It seems to be just a simple gaming of multiple dealers. Ie d1 quotes 49/50 and d2 quotes 51/52 you can arb it. Unfortunately modern financial theory claims that arbitrage does not exist. Eg the only return you can get if you do not want to take on risk is the risk free rate.

  4. sjfan


    No no no no no... modern finance theory assumes arbitrage doesn't exist to get to its results. Because when arbs exist, it's just free money, and it'll be arbed away. It's great for those doing the arb, it's somewhat beside the point for modern finance theory, which is concerned about very different things.

    The OP's video, of course, is a complete scam.

  5. WDxGANN


    I,ve contacted that person by mail . and he say that his pricer arbitrate between markets and he send me a video of an operation made by this system , in that video the system arbitrate between EURUSD SPOT and EURUSD Future .

    he annouce in his mail that this operation is repeted different time in the day . and his system can make regular profite without taking any risk. :confused:
  6. sjfan


    Um.... no. in the very very unlikely scenario that you are not a shill, the dude is lying to you. spot fx is one of the deepest and most liquid markets in the world. There's perhaps some chance that a stupid, incompetent retail broker somewhere misquoted and allowed an arb to exist, but that won't exist for very long and certainly won't get you 9% (wtf? why is it in a percentage anyway? it's scalable?) a day without risk.

    Zero chance. Zero.

  7. sjfan


    And no, you can't easily arb the difference between the spot and futures price. The gap reflects forward rate differences between the two currency. Arbing all four elements is a classic pricing relationship called covered interest rate arb. It won't exist often and even when it does, it takes a while for it work out. Not 9% a day.

  8. Sushi


    How about arbing different dealers? Tons of those assclowns in 3rd world. The prices are never the same. Seem like easy arb
  9. Sounds too easy...
  10. You can see in the video that the account on top is a demo account. Compte, in French means account.
    #10     May 30, 2009