FX Latency Arbitrage

I think you do not understand the strategy and it is impossible to make this kind of operation manually once an Arbitrage situation occurs. You need to make a decision in 1 ms in other case Arbitrage situation will be gone and the price on a fast broker and a slow one will become identical.[/QUOTE]

Okay, explain it to me then.. because the way Boris explains it, that when you get a buy opportunity is you end up actually cancelling the sell order on the other broker and putting a the sell order on broker B... therefore having a Buy and Sell order at the same broker at the same time... not actually trading...

So I don't get that really....

 

Maybe @EDWINGENTNER can explain this since it appears he has more fx experience than me...

 

Okay, explain it to me then.. because the way Boris explains it, that when you get a buy opportunity is you end up actually cancelling the sell order on the other broker and putting a the sell order on broker B... therefore having a Buy and Sell order at the same broker at the same time... not actually trading...

So I don't get that really....[/QUOTE]

I Do not know what you were told, but during of the arbitration situation, the program works in full automatic and it impossible to do it manually

 

Arbitrage is impossible with retail brokers. Sooner or later you will be caught as arbitrage pattern is easy to detect - catching ultra-short trading opportunities with high w/l ratio. Maybe you will avoid account termination but will certainly have barriers imposed on your trading, for example slippage or widened spreads.

 

I am sure that arbitrage is possible. Though, you are right if you use latency arbitrage almost all brokers, and not only retail, will add slippage within 1-2 days, but if you use two sides arbitrage or lock arbitrage and your objectives 20-40% - it is possible to trade for a long time.

 

Julia, for Two side Arbitrage, which broker you using now and which VPS provider you using now?

Thanks

 

Do you mean hedge or lock arbitrage?

 

it's ok. I should know which VPS and Broker.

 

To achieve $1000 a day for lock, you use 2 BIG account or you use multiple account to reach $1000/day ?

 

If you use lock + latency you can do 100% and broker will not find you.
If you use only latency - broker will change trading conditions soon.
I use 2 big accounts