Trading time differences between 2 MT4 platforms/price feed providers in milliseconds.. Possible?

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davefx
1003
davefx  

Hi, as my subject heading implies; I have been wondering if it is at all possible for a retail trader using an fxVPS to trade time differences between two different MT4 platforms (one fast and one slow(time in milliseconds here)) and to turn a profit?

I do believe this is not classed as arbitrage, so it should all be above board and the broker would be none the wiser.. Right?

Your thoughts and input would be appreciated.

Davefx

Fernando Carreiro
4447
Fernando Carreiro  
davefx: Hi, as my subject heading implies; I have been wondering if it is at all possible for a retail trader using an fxVPS to trade time differences between two different MT4 platforms (one fast and one slow(time in milliseconds here)) and to turn a profit?

I do believe this is not classed as arbitrage, so it should all be above board and the broker would be none the wiser.. Right?

Not quite! It is called Latency Arbitrage (1-leg) and brokers can detect it and can "cordially" invite you to close your account or just "ban" you altogether.

In practice you will not be able to make much profit, as nowadays almost all brokers have fast feeds and the discrepancies happen very seldomly.

I suggest you don't waste your time with such a system! Don't buy into the Arbitrage fallacy! There are much better ways to make a profit.

EDIT: Also forgot to mention, that even if you did find two brokers with regular latency dependencies, you would still need very tight spreads on the slow broker for such a strategy to be practical, which is usually not the case.

Pankaj D Costa
2626
Pankaj D Costa  
This type of EA or strategy is not safe for trader. Broker will not allow and maximum time trader can face withdrawal issue due to arbitrage trading. I tried and make some profit long time ago but all brokers noticed for not to use this strategy. 
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