Arbitrage Trading tool

Discussion in 'Trading' started by tradinitydotcom, Nov 1, 2010.

  1. I am designing software which will act as a trading tool for traders, trading on any platform and any instrument (stocks, forex, commodities). Some of the features are listed below. I would like to gauge a sense of its demand before I launch it publicly and any input anyone may have. I am doing an early launch with basic functionality so I can fund the additional enhancement on the system (some listed below)

    1) can read data of the screen and compare between two platforms and place trades automatically to capture arbitrage and spread trading opportunities. NO API NEEDED (finished)
    2) NO API connection or back end software integration needed to read data of your broker’s platform and then place trade on their system (finished)
    3) automates traders movement on the screen to place trades automatically when trader defined basic parameters are met (finished) (advanced algorithm based parameters still in progress awaiting additional funding)
    4) ability to setup invisible stops limits, place stops in the tool instead of brokers platform, and when price is met, the software will place trade on the brokers platform (finished)
    5) communicate data of your actions (buy/sell signals) to multiple traders (using this platform) simultaneously so they can follow your actions on their platform. (work in progress-awaiting additional funding)
    6) if you are a recipient of another traders buy/sell signals, you can automate the action to place trade on your platform as simultaneously as you receive the signal and reduce reaction time. (work in progress-awaiting additional funding)
    7) Advanced algorithm in simple language (work in progress-awaiting additional funding)

    I can post a video of the system in action (comparing rates between two forex brokers and then placing a trade between them to capture arbitrage opportunities). System is ready enough to place trades on arbitrage opportunities (I will post vdo shortly), trader defined stops limits. System will work on any platform and any instruments, including stocks, commodities futures (and capture spreads and arbitrage between them, faster than any human can)
     
  2. Good luck to you but I don't understand where the arbitrage is. Let us say you can read data from two different FX providers and you see different prices in EURUSD. First of all, you need to have an account with both. Second and most important, buying the pair in one platform and selling it in another is NOT arbitrage, you just have two positions open in two different accounts.
     
  3. not a forex geek, but if there was enough of an op to do this, why would you not just trade it, and not have to

    WAIT FOR ADDITIONAL FUNDING

    PS I didnt know it took funding to program. Is the funding for rent, food, and entertainment?


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  4. I am not a programmer i am having it programmed so its ready to be launched with all the features i want, and yes, i will be trading on it myself and hopefully that will generate part of the income necessary to fund the the whole project. Arb ops are not that many so i dont expect to make a whole lot but enough to cover some of the expnses. Becaus there are so many brokers out there, more people may have opportunities that i am not aware off so they can use this to exploit them and also let me know about them as well. Eventually i want o mae this a way for traders to communicate buysel signals and automatically place trades on their platform without 2 people using 2 differnt platforms having to be connected via an api...hope that makes sense
     
  5. @intradaybill
    yes the system is designed to place trades in one and then in the other side, most brokers will not let you sell (or kick you out after while if you try to buy and sell within a few seconds) so the scenario is that system buys from broker A and sells to broker b (capturing the difference) and when the opposite is at break even or more (i.e sell of broker a vs buy of broker b) then system reverse the position and you are flat on both sides..i have practically done this and will record it on the screen and share it soon so you can see it working in realtime basis
     
  6. there's no more than a few billion to be made doing that, so I don't think there's enough interest.
     
  7. I've seen lots of people try computer arbitrage, but the only ones that I know who have been (extremely) successful were using servers located or colocated directly over the main internet pipes (entrances).

    Good luck with your efforts, though. Even if you're unsuccessful, you will have learned a great deal about computers and the market.