Latency Arbitrage

[JULIAFISCHER]

Hi everyone. This is my first post. 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 my 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.

 

[JULIAFISCHER]

Hi everyone. This is my first post. 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 my 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.

BTW, is there anybody from Canada?

 

[Pharaoh]

Nearly all broker explicitly ban this type of trading, the same was as casinos ban computers at the blackjack table. If your account even appears to be using this method, most brokers will confiscate all the profits.

Why not just learn to trade for real instead of using software designed to exploit price lags? If you think it's OK for traders to deliberately cheat, what's your opinion of brokers who use the VDP and similar software to put in a lag and fill all your trades a the worst available price?

 

[JULIAFISCHER]

Nearly all broker explicitly ban this type of trading, the same was as casinos ban computers at the blackjack table. If your account even appears to be using this method, most brokers will confiscate all the profits.

Why not just learn to trade for real instead of using software designed to exploit price lags? If you think it's OK for traders to deliberately cheat, what's your opinion of brokers who use the VDP and similar software to put in a lag and fill all your trades a the worst available price?

If you use Lock Arbitrage your orders online 2hours or more and VDP doesn't affect trading. I use ecn broker and no problem at all.

 

[Pharaoh]

Give it time. If your entries and/or exits are always a little more in your favor than what they should be, the broker or LP will eventually notice.

Consider this - if you can close a trade with a fractional pip slippage in your favor after 2 hours, why not just tweak your trading system a little and place 2 hour trades without putting yourself at risk of having your trades cancelled.

 

[JULIAFISCHER]

Consider this - if you can close a trade with a fractional pip slippage in your favor after 2 hours, why not just tweak your trading system a little and place 2 hour trades without putting yourself at risk of having your trades cancelled.

Can you please explain. I do not understand.

 

[JULIAFISCHER]

Give it time. If your entries and/or exits are always a little more in your favor than what they should be, the broker or LP will eventually notice.
.

It is almost impossible because buy and sell are opened on 2 different brokers. For example, sell arbitrage situation appear - software will close buy and reopen it on another broker. How LP will notice that ?

 

[Pharaoh]

So you aren't just arbitraging your entry on the slow broker, you're hedging it on another broker. That's double spread (and commissions, if applicable).

I suggest you spend some time in Scam Alerts. There are dozens of examples of people who happily traded for months and then were told "Our LPs have been investigating a series of trades taking advantage of lagging prices" and find themselves minus most or all of their profits. I'm sure some of these cases are bad brokers using arbitrage as an excuse to shut down profitable traders. I'm equally sure some are real cases of an LP getting tired of certain accounts always being a few hundredths of a second on the right side of the trade and the broker being tired of those same accounts violating their TOS.

If you are allowed to cheat the system by exploiting price delays, will you object if your broker creates execution delays and gives you the worst available price during the delay time?

From my point of view, your method is just as dishonest as the tricks employed by bad brokers. The playing field between forex traders will be much more level if no one cheats.

 

[JULIAFISCHER]

So you aren't just arbitraging your entry on the slow broker, you're hedging it on another broker. That's double spread (and commissions, if applicable).

I suggest you spend some time in Scam Alerts. There are dozens of examples of people who happily traded for months and then were told "Our LPs have been investigating a series of trades taking advantage of lagging prices" and find themselves minus most or all of their profits. I'm sure some of these cases are bad brokers using arbitrage as an excuse to shut down profitable traders. I'm equally sure some are real cases of an LP getting tired of certain accounts always being a few hundredths of a second on the right side of the trade and the broker being tired of those same accounts violating their TOS.

If you are allowed to cheat the system by exploiting price delays, will you object if your broker creates execution delays and gives you the worst available price during the delay time?

From my point of view, your method is just as dishonest as the tricks employed by bad brokers. The playing field between forex traders will be much more level if no one cheats.

Are you a forex broker ? -


If I have opportunity to open trade early then price start moving - why not? If broker true STP broker - Why not?


Your explanation is from B-book broker side.


B- book broker do not like news traders, do not like scalpers, do not like arbitrage traders. Because they do not like profitable traders.


They like only losers.

 

[Pharaoh]

Read a few thousand of my posts and you'll be assured I'm not a broker. You'll also likely trip over a number of threads where someone traded for years and then the broker said something like "The LP say you are using latency arbitrage. We're shutting you down." I'd think this could happen just as easily with A book or B book brokers.