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. :)
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.
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