The above trading results were achieved trading from a standard internet connection, not from a VPS. Forex arbitrage is a low-risk trading strategy that allows traders to make a profit with no open currency exposure. It involves acting fast on opportunities presented by pricing inefficiencies between different Metatader brokers. These inefficiencies can be caused by liquidity providers or network issues on the broker's side. When there is a price difference between brokers big enough to cover both spreads and then some, opposite trades are opened until both price quotes match again.
Metatrader Arbitrage consists on connecting several Metatrader platforms using a single Expert Advisor, and trading price inefficiencies between them, without the need of placing an opposite trade on other broker.
This can be done because Metatrader brokers do not deliver quotes at exactly the same time, and it is common to find differences of pips and seconds between them. Thus, by getting quotes from a mixed group of brokers, the expert advisor can trade against the slowest one knowing the future short-term price in advance. The basic usage of the expert advisor is trading two different brokers against each other.
The EA would take advantage of network or pricing inefficiencies between two brokers, sending short-lived orders and capturing pips per trade. The expert advisor shares the last price quote and timestamp between all platforms, and attacks the slowest broker by knowing in advance the next price quotes to be received. In the example below, the EA is acting as master and slave in both platforms.
The PZ Arbitrage EA only trades when the price difference is likely to cover spread, commissions and slippage. Finding suitable metatader brokers to trade using an arbitrage strategy is not an easy task, because it is based on trial and error. The performance of an arbitrage strategy is conditioned by your network distance to the broker server, which depends on your geographical location, and the quality of the liquidity provider the broker uses.
Therefore results will be different for every user and location! Your goal is to find a suitable fast and slow broker combination, and trade against the former using price quotes from the first one.
Top-liquidity brokers are very good as a fast broker but very bad to trade against. On the other hand, small market-making brokers with low liquidity are perfect to trade against.
Forex arbitrage is a high-frequency trading strategy that allows traders to make constant profits by acting fast on opportunities presented by pricing inefficiencies between brokers. Easy to set up and supervise No indicators or hard analysis needed Arbitrage trading is time-frame independent Under ideal trading conditions, arbitrage is a zero-risk strategy Arbitrage is a high-volume strategy and generates a lot of rebates The PZ Arbitrage EA has lots of amazing features: Lifetime software updates and support Current version is 2.
Buy Directly easy download. Video of Forex Arbitrage. Set "Fast Broker" for the first broker and "Slow Broker" for the second broker. Also make sure to select the symbol of the chart from the inputs. Trading Settings Please, enter the commission per lot for your broker and symbol and the slippage the orders are suffering. Please note that The EA won't be profitable unless you enter the commission per lot and the real slippage of the orders in the inputs. It is recommended to set a trade expiration of five seconds.
Other Settings The EA can auto-calculate lotsizes from your desired risk, or you can enter the lotsize for the trades manually. Lastly, the trader can enter a manual pip-value, slippage for the orders, magic number and custom comment for trades.
Colors and Sizes Customize label colors and sizes. EA Settings Optionally, you can set your own Magic Number for the trades and a custom comment for the trades. What does a license include? Low-spread regulated market makers metatrader brokers are the best option. No, it is not. Read carefully the terms and conditions of your broker before trading. If the broker has arbitrage forbidden on its terms and conditions, yes, it can. The EA needs data from at least two different brokers to trade, thus backtesting is impossible.
Finding suitable brokers shall be done by trial and error, because performance depends on your network distance to their respective servers. Hence all users will have different suitable brokers depending on their geographical location.
You can trade this expert advisor from your home computer! Since the trades last barely one or two seconds, you can trade it only for one or two hours a day and still make good profits.
In fact, if you hire a VPS and pound your broker all day long, it might put your account under scrutiny. A license allows usage from three computers or VPS. The EA can make profits if slippage is less that 1 or 2 pips. If slippage is constantly more than 2 pips, disable trading permissions to avoid losing money.
Some brokers have anti-scalping plug-ins that work increasing the slippage for your orders. If slippage is too high, disable trading permissions and do not trade with these brokers. Why is the EA placing stop-loss and take-profit orders? Can I change them?More...