Manual Foreign Currency Trading?


I know very little about FOREX and currency trading but I want to start trading soon.

Recently I talked to the father of a friend of mine. He was a software engineer and maybe he was just making everything up but I was intrigued. What he did was from the late 80s until 1991.

He said before there were computerized Forex platforms and the EU what he did was create a program that could trade instantly based on both real-time data and the location of the markets from accounts around the world such as the US, UK Canada, Australia, Italy, etc. He said if possible he wants to start up this again doing it again the old school way with accounts around the world.

He never traded with modern digital tools like MetaTrader or anything similar. He said observing as an old school currency trader the problem he sees are standardized platforms just look at everything from one location which misses a lot of opportunities.

The example he gave was US/CAN. It is 3:18:23 Eastern time. You are in New York. The exchange rate will give you one spread in New York. Then if you were in Toronto at 3:18:23 Eastern the spread between the 2 currencies will be slightly different than it is in New York. Using this concept could take advantage of currencies all over the world. His software would take advantage of wherever the location where the spread was largest and profit from it. I'm not certain but what he did may be called Triangular Arbitrage.

A lot has changed since 1991. For some reason, he has his heart set doing it the old school way. I have no idea why he stopped back then.

My question is can what my friend's father did 30 years ago be accomplished today using manual accounts to trade foreign currency?


Private, 1st Class
In all circumstances, you should not count on quick profits and some fabulous results. I am strictly convinced that trading should be treated as a serious business, because it is really a real opportunity to make a profit and gain stability...


Essentially what you are referring to is latency arbitrage trading. There would have been good opportunities for that 30 years ago but with modern networks it is all but impossible. The big banks run their own arbitrage systems and that leaves nothing for the retail trader.

Even if you could find the opportunity, you broker will quickly identify it and terminate your account along with any profits.


Private, 1st Class
In forex market chances never ends, as you will work you will find the most suitable time and system for you. You should choose manual trading as well as a planned strategy for trading. If you show a hurry you will face their effects as a danger for your capital. Manual currency trading his a good idea where you can manage your accounts in time by your skill.

John perry

there is no quick profit as if there was you would also have quick loss. you need to find slow progressive wins with good risk management that will have longevity


Private, 1st Class
It's cool that you wrote so much and shared your story with us. But the commentators above are right - now there is no opportunity to trade like this, the way your friend's father used to trade. But maybe some more modern trading strategy will suit him better. Now you can find a lot of patterns on the Internet. The main thing is not to get upset and then you will definitely find a solution.


Agree above about this probably not being viable anymore. Harder andharder to compete with banks who largely use computers to trade.


I used to know a few guys that spent time in Europe and would arbitrage currencies. I imaging the gaps are to tight these days with banks networking and automation.