Trading the delay between brokers
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This idea I am going to write is definitely not something new. And it is indeed not a trading system at all. It is just a 'trick' for the opportunist to catch a few pips if he is able to identify the proper brokers among the dozens who are already around.
The idea is very simple and it consists about finding the 2 brokers. One which will serve the quote at a normal speed and another broker which will serve the quotes at a low speed rate. It is as if you are trying to catch a glimpse of the future on the fast broker and executing the trade on the slower broker in the hope to catch a few pips due to the delay between the two brokers.
I have heard that there are people who are working with such ideas however, I think there would be problems with this method as the trader will need to cover the spreads for each of the trade and most of the times, he will be experiencing slippage as well as requotes which will simply negate the trade. The real deal is finding the 2 brokers which have a consequent delay between there quotes and work on a pair which has the lowest spread e.g 1.5 pips. In this way, a simple EA can be used to scalp the market when it spot a gap between the quotes.
This is an interesting idea and I wonder if there is anyone who has already played around it. If you can shed some light on it, you are welcome...