MT4 Server Manipulation - latency arb

eesfx
300
eesfx  
If an MT4 broker has a real STP / ECN - is there any way a trader can use an EA to take advantage of price feed, either by logging into 2 VPS or by any other means, which would cause the broker to actually lose money from his winning trades? I remember we had a client running a manipulative EA on build 220 (or was 220 the fix).. it was around that time, in 2007 - since then I haven't seen too many of these EAs around, and I'm wondering what is working, or if something could theoretically take advantage of a broker server?
Ubzen
5300
Ubzen  

Heck, I think Latency Arbitrage is History. This was the first Arbitrage I read about before even taking on mql4 yet couldn't find anything comprehensive about it. IIRC this technique is used with 2 (Dealing-Desk) brokers, the fast broker tell you where price is headed and you scalp the slow broker. These days hardware speeds can keep up, brokers know the game, freeze_lv, re-quotes, spreads and mt4-unique ability to single u out and stall your orders.

ECN brokers don't care about scalping because 1) You're more than likely not gonna close your order with them. I had another reason but slipped my mind. :)

zzuegg
1503
zzuegg  
ubzen:

ECN brokers don't care about scalping because 1) You're more than likely not gonna close your order with them. I had another reason but slipped my mind. :)

They earn money trough commission. They simply don't care if you win or loose.

@elite: Fractional Product Inefficiency might work on a institutional feed and (really!) low commissions. (http://www.kreslik.com/forums/viewtopic.php?t=307)

Even using three terminals to overcome the TradeContextIsBusy problem, i was only able to win around 60% of the sessions on a demo server. (low spread and no commission and still i needed to wait on a extrem Inefficiency to open and then on a extrem Inefficiency on the other side to close). We are talking here about sub-pip winnings. But i like the concept.