Lets consider how does it work on EURUSD. Imagine that we have two synthetic pairs EURUSDx and EURUSDy.
They have similar dynamics, so if we open two opposite positions on these pairs we will have a hedged position.
Open: BUY EURUSDx and SELL EURUSDy. After some time we close these positions: SELL EURUSDx and BUY EURUSDy.
Profit: Profit = (BIDx - ASKx) + (BIDy - ASKy) = (BIDx - ASKy) + (BIDy - ASKx)
In the experssion presented above we know the value of the first bracket (BUY EURUSDx and SELL EURUSDy).
The value of the second bracket is known after positions close (SELL EURUSDx and BUY EURUSDy)
There are several cases with positive Profit values. One of them is:
At open: BIDx > ASKy,
At close: BIDy > ASKx.
Trade-Arbitrage expert advisor uses it (you can modify for any other condition).
In a realtime it looks for cases when BIDx > ASKy for ALL of the possible synthetic pairs (thousands cases) and opens the corresponding positions.
It means that Trade-Arbitrage expert advisor is always has a multicurrency hedge.
It creates the file ArbitrageStatistic.txt with sorted (by frequency) arbitrage cases.
The file ArbitrageStatistic.txt
If Monitoring is TRUE, the expert advisor adds some arbitrage details to file Arbitrage.txt.
Arbitrage.txt with details
The trading is performed with pairs, defined in the file Trade-Arbitrage.txt (the file location is: experts\files).
Trade-Arbitrage.txt file example
Also it logs some details for further analysis (deals, reasons, and results):
Trade-Arbitrage advisor results (above), NettoTrading (left) and CheckMyArbitrage (right) script results
The multicurrency hedge can be checked by using a cycled script CheckMyArbitrage.
Note that it's a mirror translation of the original Russian version.
If you have any questions to the author, suggestions or comments, it's better to post them there.
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/9356
The strategy is based on breakthrough of the maximum and minimum price values of the previous trading day.Average Stocastic indicator for several timeframes
It shows Stochastics for several timeframes in a single chart, also it calculates the average value.