Hi everyone. I am Julia and my forex passion is latency arbitrage. I am trying to learn as much as I can about the subject and am ready to share my findings and ideas with anyone interested. Personally, I have employed latency arbitrage robots to meet my target which is to make $1000 a day on forex. It’s taken me almost two years to reach this level and learn about arbitrage trading. Anyone who shares my passion, welcome to the discussion of this topic: Most profitable software for Latency Arbitrage Trading.
I tried lots of stuff. This one works for me because a broker is unable to detect arbitrage trading. Instead of opening a position when arbitrage occurs the soft uses closing which decreases slippage. So it is a well thought through soft. The ones I tried before for arbitrage trading do work but not for long
Symbol: GBPUSD Price on fast broker: Bid: 1.35005 Ask: 1.35006 Price on slow brokers A: Bid: 1.35010 Ask: 1.35011 Diff to open on slow Broker: 3 Opened order(s) on broker A on GBPUSD: SELL Arbitrage situation is detected for long position. Instead to buy, we will close SELL order and apply trailing stop to virtual BUY order (ticket number of virtual order will be the same as for closed order, but opening price will be the price at which original order was closed); An when the stop loss is hit, we will reopen SELL order on broker b. So now on Broker A we will have no orders on GBPUSD, and on Broker B we will have 2 orders – BUY and SELL. So now trading on GBPUSD will be performed only on broker B, and when long or short situation appears, one of the orders will be closed, and the other one will be locked on Broker A as the result of hidden S/L or (T/P). ------------ Except for the obvious mispricing, this strategy doesn't make sense to me. You end up with a buy and sell order (no execution) at the same broker... I can do that manually....
Except for the obvious mispricing, this strategy doesn't make sense to me. You end up with a buy and sell order (no execution) at the same broker... I can do that manually....[/QUOTE] 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.