Arbritrage Trading

 

I have been using this method manually based off this formula.

You use only GBPUSD EURGBP EURUSD

NOW. IT CAN ONLY BE A S.S.B. OR A B.B.S combination, in that order.

Lots sizes GBPUSD uses price of EURGBP, rest of the 2 are 1 lots

GBPUSD EURGBP EURUSD

ex, LOTS S 0.95 B 1 B 1

NEXT STEP IS DECIDING WHICH COMBO TO CHOOSE FROM? VERY IMPORTANT

IF SSB THEN,

SELL MARKET ORDER GBPUSD

BUY MARKET ORDER EURUSD

PLACE A PENDING ORDER SELLLIMIT ORDER EURGBP XX PIPS ABOVE CURRENT PRICE

IF BBS

BUY MARKET ORDER GBPUSD

SELL MARKET ORDER EURUSD

PLACE A PENDING ORDER BUYLIMIT ORDER EURGBP XX PIPS BELOW CURRENT PRICE

AS LONG AS THE PENDING ORDER IS TRIGGER YOUR LOCKED IN A PROFITABLE ARBRITRAGE TRADE.

I NEED A WAY TO HELP DECIDE WHICH COMBO TO CHOOSE AND IF THE PENDING ORDER IS LIKELY TO BE TRIGGERED THAT DAY. IF NOT TRIGGERED THEN YOUR IN A DEEP DRAWDOWN TILL IT RETURNS BACK, THATS WHAT I AM TRYING TO AVOID.

ANY IDEAS?

 
fab4x:
I have been using this method manually based off this formula.You use only GBPUSD EURGBP EURUSD NOW. IT CAN ONLY BE A S.S.B. OR A B.B.S combination, in that order.Lots sizes GBPUSD uses price of EURGBP, rest of the 2 are 1 lots GBPUSD EURGBP EURUSDex, LOTS S 0.95 B 1 B 1 NEXT STEP IS DECIDING WHICH COMBO TO CHOOSE FROM? VERY IMPORTANTIF SSB THEN,SELL MARKET ORDER GBPUSDBUY MARKET ORDER EURUSDPLACE A PENDING ORDER SELLLIMIT ORDER EURGBP XX PIPS ABOVE CURRENT PRICE IF BBS BUY MARKET ORDER GBPUSDSELL MARKET ORDER EURUSDPLACE A PENDING ORDER BUYLIMIT ORDER EURGBP XX PIPS BELOW CURRENT PRICE AS LONG AS THE PENDING ORDER IS TRIGGER YOUR LOCKED IN A PROFITABLE ARBRITRAGE TRADE. I NEED A WAY TO HELP DECIDE WHICH COMBO TO CHOOSE AND IF THE PENDING ORDER IS LIKELY TO BE TRIGGERED THAT DAY. IF NOT TRIGGERED THEN YOUR IN A DEEP DRAWDOWN TILL IT RETURNS BACK, THATS WHAT I AM TRYING TO AVOID. ANY IDEAS?

Do you have an EA on arbitrage may be a traingular arbitrage or hedge system?

 
fab4x:
I have been using this method manually based off this formula. You use only GBPUSD EURGBP EURUSD NOW. IT CAN ONLY BE A S.S.B. OR A B.B.S combination, in that order. Lots sizes GBPUSD uses price of EURGBP, rest of the 2 are 1 lots GBPUSD EURGBP EURUSD ex, LOTS S 0.95 B 1 B 1 NEXT STEP IS DECIDING WHICH COMBO TO CHOOSE FROM? VERY IMPORTANT IF SSB THEN, SELL MARKET ORDER GBPUSD BUY MARKET ORDER EURUSD PLACE A PENDING ORDER SELLLIMIT ORDER EURGBP XX PIPS ABOVE CURRENT PRICE IF BBS BUY MARKET ORDER GBPUSD SELL MARKET ORDER EURUSD PLACE A PENDING ORDER BUYLIMIT ORDER EURGBP XX PIPS BELOW CURRENT PRICE AS LONG AS THE PENDING ORDER IS TRIGGER YOUR LOCKED IN A PROFITABLE ARBRITRAGE TRADE. I NEED A WAY TO HELP DECIDE WHICH COMBO TO CHOOSE AND IF THE PENDING ORDER IS LIKELY TO BE TRIGGERED THAT DAY. IF NOT TRIGGERED THEN YOUR IN A DEEP DRAWDOWN TILL IT RETURNS BACK, THATS WHAT I AM TRYING TO AVOID. ANY IDEAS?

Few days ago i read about Arbitrage in another forum...The pairs are the same as yours (EU, GU and EG).

The formula is:

GU x EG = EU

What we need to do is find the deviation of the formula above.

So if GU x EG not equal to EU with at least 12 pips deviation (to anticipate spread and slippage) then we can enter the trade.

If GU x EG > EU (at least 12 pips), then we sell EU, buy GU and EG.

If GU x EG < EU (at least 12 pips), then we buy EU, sell GU and EG.

The target profit must be: 12 pips - total spread from all 3 pairs.

But this kind of method (based on the formula) rarely happen, and if it's really happen then it will be "very" fast before the price get into their balance form again.

Reason: