Do Brokers Allow Statistical Arbitrage
get regulated broker, if they fail to pay out get lawyer- arbitrage is legal by law.
You can try so called masking- arbitrage trades are considered toxic- keep them below 20% of all trades.
If all brokers ban you .... use someones account with permission (check if it's legal in your jurisdiction).
Holding over 5 minutes- it works on some brokers- hedge trades and arbitrage by closing hedges- this way your trades will be opened 24/7 and only closed for several seconds ;-) Curently works .... but may stop one day.
Unfortunetly arbitraging community is very closed, and not willing to share knowlage- it's a game between them and brokers. Looking for an answer like you do now will not get you answer- try harder.
Try software support you using- they may help a bit.
You can try so called masking- arbitrage trades are considered toxic- keep them below 20% of all trades.
If all brokers ban you .... use someones account with permission (check if it's legal in your jurisdiction).
Holding over 5 minutes- it works on some brokers- hedge trades and arbitrage by closing hedges- this way your trades will be opened 24/7 and only closed for several seconds ;-) Curently works .... but may stop one day.
Unfortunetly arbitraging community is very closed, and not willing to share knowlage- it's a game between them and brokers. Looking for an answer like you do now will not get you answer- try harder.
Try software support you using- they may help a bit.
Anita Górel #:
get regulated broker, if they fail to pay out get lawyer- arbitrage is legal by law.
You can try so called masking- arbitrage trades are considered toxic- keep them below 20% of all trades.
If all brokers ban you .... use someones account with permission (check if it's legal in your jurisdiction).
Holding over 5 minutes- it works on some brokers- hedge trades and arbitrage by closing hedges- this way your trades will be opened 24/7 and only closed for several seconds ;-) Curently works .... but may stop one day.
Unfortunetly arbitraging community is very closed, and not willing to share knowlage- it's a game between them and brokers. Looking for an answer like you do now will not get you answer- try harder.
Try software support you using- they may help a bit.
get regulated broker, if they fail to pay out get lawyer- arbitrage is legal by law.
You can try so called masking- arbitrage trades are considered toxic- keep them below 20% of all trades.
If all brokers ban you .... use someones account with permission (check if it's legal in your jurisdiction).
Holding over 5 minutes- it works on some brokers- hedge trades and arbitrage by closing hedges- this way your trades will be opened 24/7 and only closed for several seconds ;-) Curently works .... but may stop one day.
Unfortunetly arbitraging community is very closed, and not willing to share knowlage- it's a game between them and brokers. Looking for an answer like you do now will not get you answer- try harder.
Try software support you using- they may help a bit.
I can understand why Arbitrage community is so closed, because this is the only thing that works nowaday, trying to time the market is the stupidest thing you can do. It will only guarantee your losses over the longer term. You mentioned something called masking your trades, could you elaborate more? And what do you imply by hedging here, do I need to hedge with every signal (opening a long and a short with one broker, and doing the same with the 2nd broker)?
Mansour Fahad M Almogaiteeb #:
you can hedge in many ways. Same account, two different accounts with same broker, 2 different account with different brokers. There should be strategy on your bot that let you do it. If you use your own bot you must implement it. I can understand why Arbitrage community is so closed, because this is the only thing that works nowaday, trying to time the market is the stupidest thing you can do. It will only guarantee your losses over the longer term. You mentioned something called masking your trades, could you elaborate more? And what do you imply by hedging here, do I need to hedge with every signal (opening a long and a short with one broker, and doing the same with the 2nd broker)?
Masking is using EA that should make turnover on account not profit with similar lot size, or making turnover trading manually. To much profits will rise broker suspicions too and may cause broker to have closer look at your trade history.
Be aware of plugins that brokers that not play fair may put on servers preventing you from profiting (such server may manipulate execution time) you will spot it when your bot will stop making profit, try account in other name then or different broker ;-)
I’ve been arbitraging automatically on some brokers but always ended up banned. While it is technically legal, if brokers have it forbidden in their terms of use; then they are forbidden unfortunately.
I believe there might be some way of doing so between multiple different broker accounts, but never tried.
Zaky Hamdoun #:
I’ve been arbitraging automatically on some brokers but always ended up banned. While it is technically legal, if brokers have it forbidden in their terms of use; then they are forbidden unfortunately.
So were you doing the arbitraging with the same broker among two different symbols or what? Because I believe it is impossible to arbitrage the same instrument with the same broker (since the ask will always be larger than the bid).
I’ve been arbitraging automatically on some brokers but always ended up banned. While it is technically legal, if brokers have it forbidden in their terms of use; then they are forbidden unfortunately.
I believe there might be some way of doing so between multiple different broker accounts, but never tried.
Mansour Fahad M Almogaiteeb #:
So were you doing the arbitraging with the same broker among two different symbols or what? Because I believe it is impossible to arbitrage the same instrument with the same broker (since the ask will always be larger than the bid).
Not the same instrument. I did triangular arbitrage on the same broker. They accepted under the condition that it made 0 profits. But I was winning rebates, therefore making profit.
So were you doing the arbitraging with the same broker among two different symbols or what? Because I believe it is impossible to arbitrage the same instrument with the same broker (since the ask will always be larger than the bid).
Zaky Hamdoun #:
Not the same instrument. I did triangular arbitrage on the same broker. They accepted under the condition that it made 0 profits. But I was winning rebates, therefore making profit.
i know of a couple of third party Introducing Brokers where you register under their referral link, they get paid a portion of the broker commission revenue and then they pay you back a percentage of that. What did you use to collect your reabtes?
Not the same instrument. I did triangular arbitrage on the same broker. They accepted under the condition that it made 0 profits. But I was winning rebates, therefore making profit.
Mansour Fahad M Almogaiteeb #:
i know of a couple of third party Introducing Brokers where you register under their referral link, they get paid a portion of the broker commission revenue and then they pay you back a percentage of that. What did you use to collect your reabtes?
i know of a couple of third party Introducing Brokers where you register under their referral link, they get paid a portion of the broker commission revenue and then they pay you back a percentage of that. What did you use to collect your reabtes?
Yes, register as your own Introducing Broker, and be a client of your own IB. That way, you can get rebates on your own trade. Most brokers that have IB systems allow such practices.
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Throughout the years I used well over +50 brokers, and from what I know all of them will not allow arbitraging (doing latency arbitrage), meaning, to find a broker with a slow price feed and trading against it knowingly how the price will move based on a fast price feed. Doing this will make you a lot of profit with the slow feed broker, broker will notice this and ban you and even the worst of it they will null your trades. Now, on the contract, doing statistical arbitrage will not guarantee which broker will be the house of your wins or losses, as on big number of trades your wins and losses will be scattered among your two brokers and not only one. You will lose some to a broker a win some, making your trades history look less suspicious and even impossible for the broker to find out (I think) . I try to keep my trades span longer than five minutes, will this help in preventing the broker from finding out I'm doing SA or they actually never care for this type of arbitrage? I'd appreciate different views on this subject.