Arbitrage Trading

[virmon]

I have been using this method manually based off this formula.
You use only GBPUSD EURGBP EURUSD

NOW. IT CAN ONLY BE A S.S.B. OR A B.B.S combination, in that order.
Lots sizes GBPUSD uses price of EURGBP, rest of the 2 are 1 lots

GBPUSD EURGBP EURUSD
ex, LOTS S 0.95 B 1 B 1


NEXT STEP IS DECIDING WHICH COMBO TO CHOOSE FROM? VERY IMPORTANT
IF SSB THEN,
SELL MARKET ORDER GBPUSD
BUY MARKET ORDER EURUSD
PLACE A PENDING ORDER SELLLIMIT ORDER EURGBP XX PIPS ABOVE CURRENT PRICE

IF BBS

BUY MARKET ORDER GBPUSD
SELL MARKET ORDER EURUSD
PLACE A PENDING ORDER BUYLIMIT ORDER EURGBP XX PIPS BELOW CURRENT PRICE

AS LONG AS THE PENDING ORDER IS TRIGGER YOUR LOCKED IN A PROFITABLE ARBRITRAGE TRADE.

I NEED A WAY TO HELP DECIDE WHICH COMBO TO CHOOSE AND IF THE PENDING ORDER IS LIKELY TO BE TRIGGERED THAT DAY. IF NOT TRIGGERED THEN YOUR IN A DEEP DRAWDOWN TILL IT RETURNS BACK, THATS WHAT I AM TRYING TO AVOID.

ANY IDEAS?

 

[Enivid]

That's absolutely pointless. You just can't arbitrage in the modern Forex market as it's "superliquid" and the prices are always absolutely balanced.

If you go short on GBP/USD and at the same time go long at EUR/USD it's completely the same as if you went long on EUR/GBP - there is no difference. So, if you then place a pending order for entering short on EUR/GBP, that's like you are trying to hedge your profit on the pair instead of just using a take-profit or stop-loss. That's all, there is no arbitrage.

If you go long on GBP/USD and short on EUR/USD that's the same as if you went short on EUR/GBP pair. Again no arbitrage here.

This "arbitrage" ideas comes to almost every trader's mind at some point. I had this one too during my early life as a trader and I've seen it several times on forums. But every sane trader should understand that arbitrage isn't possible in Forex and if you go long on some A/B pair and short on some C/B pair that's the same as going long on A/C or short on C/A.

 

[ganndos]

Yup, the market so "superliquid"... I found http://equilibrium-autofx.com use same system with EA , may you contact the owner and discuss about it.

I also use this kind of trading system....I use a parameter to measure my entry like channel at open market...

eur and gbp have close intraday habit in opposite the others especially usd , if you wanna use eurgbp,gbpusd and eurusd.... I think it might work at range 07.00-11.00 ( GMT+2) as euro and london open.

 

[Enivid]

Yup, the market so "superliquid"... I found http://equilibrium-autofx.com use same system with EA , may you contact the owner and discuss about it.

I also use this kind of trading system....I use a parameter to measure my entry like channel at open market...

eur and gbp have close intraday habit in opposite the others especially usd , if you wanna use eurgbp,gbpusd and eurusd.... I think it might work at range 07.00-11.00 ( GMT+2) as euro and london open.

Unfortunately, I don't speak Indonesian, so I couldn't understand everything on the page. But from what I was able to understand, the offered Excell tab gets the quotes from MT4 server and tries to find the arbitrage situations between the pairs. I've been doing the same thing manually and the only times there have been arbitrage situation is has been because of the server's lag and it still was no more than 2-3 pips that could be easily eaten by the spread.

 

[FXexpert]

It is really tough to trade based on arbitrage in Forex, opportunities don't come up very often.

 

[FXCode]

What are your results, based on this system?
How long are you trading it?

Thanks for sharing.

 

[4xlrnr]

Thanks for sharing man

 

[anna575]

Hello

Hey, that's a good formula. Arbitrage in Forex is really tough and I also used this trading system. It is the good opportunity for you. This news is very profitable in the Forex market. Thanks..

 

[WinFX]

Watch live forex arbitrage opportunities

It is really tough to trade based on arbitrage in Forex, opportunities don't come up very often.

Really? Just watch hundreds of forex arbitrage opportunities every single day: [url deleted] Many of them are tradeable (i.e.: EURUSD 4-8 pips) Although they are not based on triangular arbitrage(why to involve more risk?) they do occur quite often.

 

[seekfxhelp]

Really? Just watch hundreds of forex arbitrage opportunities every single day: [url deleted] Many of them are tradeable (i.e.: EURUSD 4-8 pips) Although they are not based on triangular arbitrage(why to involve more risk?) they do occur quite often.

I also once waste my precious weekday with these method. arbitrage use two different brokers account feed are won;t work while use real account server (slippage, latency etc...). as triangle one are had higher trading cost, use 3 pairs at once, with 4-pips ? consider these method in the long run, too much cost for such small pips target which rarely achieve. in short, low gain method with high risk .. as also demand higher initial margin since it open 3 entries at the time.

 

[WinFX]

Brokers don't like arbitrage because it does work.

I also once waste my precious weekday with these method. arbitrage use two different brokers account feed are won;t work while use real account server (slippage, latency etc...).

Have you tried Arbitrageur Advanced? Brokers don't like arbitrage because it does work, otherwise why would they even bother to work against arbitrage?

 

[Easy Trader]

With currencies from my little bit of knowledge the only real feasible arb is between a regular broker and a spread bet. Don't ask me the details cause I vaugely remember them but it takes a decent bank roll and price has to move a good distance to make it worth while. Their are easier arb's out there like arb-ing the delta between the equities index and its future contract every morning, but they too take a decent amount of cash.