Simple strategy 5-10% profit per month with arbitrage

Mar 5, 2022
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Hello, I would like to introduce you to a forex strategy that is very easy to trade, with this strategy you simply build a hedge using two different brokers and then collect swap interest for the open trades every day. You have to use two different brokers to make it work because the brokers always set their swap rates so that you don't earn anything if you open the hedge in the same account but if you use another broker that is for example swap free or very low swap calculated, then it works.

For example, currency USDMXN is traded 1 lot short with broker IC Markets and broker Octafx 1 lot long, so you open the same trade with the same volume with both brokers, but you go short with one broker and long with the other, so you have an open hedge. Now IC Markets pays a few euros every night for the short trade and Octafx doesn't charge swaps on MT5 accounts, so you just earn swap interest every day without doing anything in principle, in which direction the price goes you don't need to guess either.

The only thing to keep in mind is that from time to time you need to transfer money from one account to another, for example if one account is in profit the other will be in the red and before you get a margin call on the account that is in the red you should put new money on it, the money can in turn be withdrawn from the other account which is in profit. IC Markets and Octafx also allow you to deposit and withdraw money for free and with the strategy you can make around 5-10% profit a month, so that's actually a good thing, isn't it?

By the way, I built an EA robot with which you can trade this strategy well, the robot monitors all the connected accounts all the time and also intervenes if necessary or sends messages to the user so that you know what's up. You can watch my robot live on Twitch:

I would like to sell this robot, if anyone is interested please let me know.

Feel free to write here in the forum how you find the strategy.
 

Enivid

Administrator
Staff member
Nov 30, 2008
17,003
1,020
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Odessa
www.earnforex.com
This strategy looks good at first glance, but if you think about it, it doesn't seem good at all. You will get a margin call on the losing side. And if you keep enough margin there, your swap earnings will be minimal compared to the capital you will have to invest.
 
Mar 5, 2022
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This strategy looks good at first glance, but if you think about it, it doesn't seem good at all. You will get a margin call on the losing side. And if you keep enough margin there, your swap earnings will be minimal compared to the capital you will have to invest.

You are right you need much capital to get good results, because 5-10% is something which you can expect, but 5% on 10K is also just 500 dollar and i know some people try to make much more with 10K capital, but at the other side most people lose money because they dont know how trick the markets are and with this strategy you can not lose so easy, because you only need to keep enough capital in the account. You say a margin call happen, but it dont need to happen, because if you deposit fast enoudh new money then it can continue run, in my Titwch livestream the 2 accounts are running since 2-3 weeks without me have done any rebalance of capital, if i would open more lotsize then it can happen faster that i need to make rebalance, but if this is the only think that you need to do and you can earn 5-10% per month without such risk to lose, then i dont know, then its good again or not?

I mean come on guys 5-10% is something which most people say to themself is enough for me when i make that every month and here you go, you can make it with this strategy like arbitrage.

But let me know what you all thing, if you tell me why its not good to use then i will think about it.
 

Enivid

Administrator
Staff member
Nov 30, 2008
17,003
1,020
144
Odessa
www.earnforex.com
You are right you need much capital to get good results, because 5-10% is something which you can expect, but 5% on 10K is also just 500 dollar and i know some people try to make much more with 10K capital, but at the other side most people lose money because they dont know how trick the markets are and with this strategy you can not lose so easy, because you only need to keep enough capital in the account. You say a margin call happen, but it dont need to happen, because if you deposit fast enoudh new money then it can continue run, in my Titwch livestream the 2 accounts are running since 2-3 weeks without me have done any rebalance of capital, if i would open more lotsize then it can happen faster that i need to make rebalance, but if this is the only think that you need to do and you can earn 5-10% per month without such risk to lose, then i dont know, then its good again or not?

I mean come on guys 5-10% is something which most people say to themself is enough for me when i make that every month and here you go, you can make it with this strategy like arbitrage.

But let me know what you all thing, if you tell me why its not good to use then i will think about it.
You won't earn 5-10% per month unless you are keeping just enough funds for 100-200 pips movement.
 
Mar 5, 2022
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You won't earn 5-10% per month unless you are keeping just enough funds for 100-200 pips movement.

Ok but, in my example account i have now only 100 euro per account, all toghter 200 euro capital and i have 3 trades open USDMXN, EURZAR and USDZAR, all paris have make something like 700 Pips move in the last 2 weeks and i have not need to make a rebalance but my current profit is 4.5% per month.

If i would use more lotsize then i can get more win but i will need to monitor more closely. But for this reason i have also code my EA which helps to monitor all trades. If something like a margin call happen in one acount then the EA would close the trade in the other account or if i get a small margin level the EA will inform me, so that i can make a new deposit.

So do you really think its not possible? I mean you can see in my own live accounts that it works.

i know also somebody hoe trade like in your example he use so much lotsize that after around 200 Pips move a new rebalance is needed, but he also earn more 10-15% then, because more lotsize means less room for price to move but also more profit.

if you for example trade currency like USDTRY or USDRUB which give more swap but which are also more volatil then you can earn more but lets say something like a big weekend gap happen like in USDRUB few days ago, what will happen then? One account will get margin call and the other account will be big in profit, so overall because of the hedge you are in good position i think, what do you think?
 
Mar 5, 2022
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Maybe it is difficult to understand the numbers in my Livestream, so i have make a picture here with description.

arbitragemaster infos.png

This 2 accounts are now running in my livestream since 2 weeks and i did not need to make anything, if in one account the equity become to small then i just need to deposit more money again into it, to give it again enough room to move and the money which you deposit in that account can be withdraw from the other profitable account. So its just rebalancing you can say what you have to do. No need to predict market direction.

And one thing you need to keep in mind, when you start trades then you need to make it when spreads are not high, that is usual the time when London market is open. And when you start new trades it takes usual 5-10 days untill your swap earings cover your spread cost, but after that you are earning just every day new swap. the spread will always change a bit, in the evenings you will see less profit on your trades when the spread is high again but during the normal trading hours you have normal spread again.
 

Enivid

Administrator
Staff member
Nov 30, 2008
17,003
1,020
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Odessa
www.earnforex.com
Thanks for the screenshot, but it doesn't provide the entry and current prices for the positions, so it is difficult to understand how much of profit is from the spread and how much is from the entry.

Also, are you sure your calculated swap value for short USDMXN on IC Markets is correct (0.14 euro)? I see it is reported as 20 points for IC Markets, 20 points of USDMXN on 0.01 lot is less than 1 euro cent.
 
Mar 5, 2022
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Thanks for the screenshot, but it doesn't provide the entry and current prices for the positions, so it is difficult to understand how much of profit is from the spread and how much is from the entry.

Also, are you sure your calculated swap value for short USDMXN on IC Markets is correct (0.14 euro)? I see it is reported as 20 points for IC Markets, 20 points of USDMXN on 0.01 lot is less than 1 euro cent.

The profit infos which the Robot draw on the chart are directly read from the metatrader open positions, swap and spread is already in that values.
The entry price is not so important for this strategy you are earning here every evening when new swap is payed. The spread also change often and comes back to normal again, overall it is so that when you start a new hedge trade then after a few days you earn back the payed spread.

Yes i think my calculated swap vaules are correct with 0.01 lot you get around 14 cent, you say yourself it must be less then 1 euro
 

Enivid

Administrator
Staff member
Nov 30, 2008
17,003
1,020
144
Odessa
www.earnforex.com
The profit infos which the Robot draw on the chart are directly read from the metatrader open positions, swap and spread is already in that values.
The entry price is not so important for this strategy you are earning here every evening when new swap is payed.
That's exactly why it is important to see the entry values. If those trades are a result of some luck, the difference between the entry price on the long trade and the entry price on the short trade will be much lower than the normal spread for the currency pair.
Yes i think my calculated swap vaules are correct with 0.01 lot you get around 14 cent, you say yourself it must be less then 1 euro
Less than 1 euro cent. What does it say in the Specification of USDMXN for the Short swap in the IC Markets account?
 
Mar 5, 2022
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That's exactly why it is important to see the entry values. If those trades are a result of some luck, the difference between the entry price on the long trade and the entry price on the short trade will be much lower than the normal spread for the currency pair.

Less than 1 euro cent. What does it say in the Specification of USDMXN for the Short swap in the IC Markets account?

The Specification shows swap infos in points, but annyway it works fine, this strategy is not a secrect some people use it since years and it works fine when you take care to a few things, compared to other forex strategys this is the easyest you can find, here you dont need to predict any direction you always know what to do and with my program you can monitor this all. I have create now a new version of my robot a webversion:
 
Mar 5, 2022
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The interest rate have rise last week, you can earn now around 2% more with this strategy per month without more risk then before. I have for example since 20 april a small portfolio open with 1.5 lot on 2 accounts with 5K startbalance i did not make any rebalance since then and the system make every day new wins, you can see it in my livestream how easy it works:
i also attach you a pdf file with more infos, so if you want just contact me to get my nice webtrader for this swap trading strategy
 

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Fuside

Trader
Oct 29, 2022
1
0
6
40
Hello, I would like to introduce you to a forex strategy that is very easy to trade, with this strategy you simply build a hedge using two different brokers and then collect swap interest for the open trades every day. You have to use two different brokers to make it work because the brokers always set their swap rates so that you don't earn anything if you open the hedge in the same account but if you use another broker that is for example swap free or very low swap calculated, then it works.

For example, currency USDMXN is traded 1 lot short with broker IC Markets and broker Octafx 1 lot long, so you open the same trade with the same volume with both brokers, but you go short with one broker and long with the other, so you have an open hedge. Now IC Markets pays a few euros every night for the short trade and Octafx doesn't charge swaps on MT5 accounts, so you just earn swap interest every day without doing anything in principle, in which direction the price goes you don't need to guess either.

The only thing to keep in mind is that from time to time you need to transfer money from one account to another, for example if one account is in profit the other will be in the red and before you get a margin call on the account that is in the red you should put new money on it, the money can in turn be withdrawn from the other account which is in profit. IC Markets and Octafx also allow you to deposit and withdraw money for free and with the strategy you can make around 5-10% profit a month, so that's actually a good thing, isn't it?

By the way, I built an EA robot with which you can trade this strategy well, the robot monitors all the connected accounts all the time and also intervenes if necessary or sends messages to the user so that you know what's up. You can watch my robot live on Twitch:

I would like to sell this robot, if anyone is interested please let me know.

Feel free to write here in the forum how you find the strategy.
I’m interested in your robot.