The impact of the spread on trading results - page 5

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Renat Fatkhullin 2013.03.03 07:03 RU
hrenfx:

 As for HFT, there is not and will not be a single argument from Renat's side, as he is at best a theorist on this subject and at worst unwilling to learn.

Look into the eyes of your liquidity provider and ask:

  1. Friend, why don't you, a liquidity aggregator with occasional negative spreads(the result of flows from different providers), trade this arbitrage yourself? it's free money!
  2. Why don't you, who have zero latency and flow aggregation, set up HFT on your own? You don't have the brains or are you weak to create a strategy?

I have asked such questions many times (it's my job, no matter who wants to present otherwise) and I know the real answers. We are talking about forex.

https://www.mql5.com/ru/forum/10454/page53

Does anyone know the answer to this question? Why don't brokers themselves, asRenat Fatkhullin claims,arbitrage when they find negative spreads between different liquidity providers?

 
ironfelx #:
Renat Fatkhullin 2013.03.03 07:03 RU

Look into the eyes of your liquidity provider and ask:

  1. Friend, why don't you, a liquidity aggregator with periodically negative spreads(the result of flows from different providers), trade this arbitrage yourself? it's free money!
  2. Why don't you, who have zero latency and flow aggregation, set up HFT on your own? You don't have the brains or are you weak to create a strategy?

I have asked such questions many times (it's my job, no matter who wants to present otherwise) and I know the real answers. We are talking about forex.

https://www.mql5.com/ru/forum/10454/page53

Does anyone know the answer to this question? Why don't the brokers themselves, asRenat Fatkhullin says,arbitrage when negative spreads between different liquidity providers are detected?

Maybe because they are kitchens? Or someone puts your $10 bet on the market?

How many times can you chew on the same topic for years...

 
Dmytryi Nazarchuk #:

Maybe because they are kitchens? Or is someone putting your $10 bet on the market?

How many years can we chew on the same topic...

Well, understandably the kitchens, what prevents them from arbitrage themselves if they have liquidity flow from different brokers?

 
ironfelx #:

Well, understandably the kitchens, what prevents them from arbitrating themselves if they have liquidity flow from different brokers?

Because institutional arbitrageurs with access to the interbank market arbitrate, and retail brokers only dream of their financial and technical capabilities

 
ironfelx tick history, there may still be some benefit from it. And as an option download ticks from all of them and analyze them.
If something is found, we may start such amount of terminals for all these brokerage companies and each terminal will save ticks in the real time mode and analyze them for arbitrage.

At least this is not a guessing game of random sequence of price time series.


I've seen similar requests on freelance. You can show yourself in the archive and try to communicate on this subject with the customers - if the idea does not pay off, then for sure they will offer to buy back the Expert Advisor written by them.
 
ironfelx #:

Well understandably the kitchens, what prevents them from arbitrating themselves if they have liquidity flow from different brokers?

there is an explanation.

firstly, it is not a risk-free strategy

secondly, if the strategy is successful, it is the same toxic.

logically it is more profitable to give this arbitrage to end users and increase their marcap or shut down trading in case of claims.

 
First find a broker that will give you this kind of spread without commission, and if you do, don't forget to ask about their stoplevel and hold time limits.
 
What do you think, for example, if one of the 20 brokers has a price at some time that differs from the others by more than 2 spreads, is it better to open a position on it towards the prices of the other 19 brokers or to open an arbitrage position, that is, on it and on one of the 19 where the biggest peak of the price difference from it?
 
And still I do not understand, having a large number of brokers and a variety of traded instruments, is there really no possibility of arbitrage between them for a mere mortal trader?
Of course you have to dig through a lot of data to compare and identify it, but it's still better than playing guessing...
 
ironfelx #:
And still I do not understand, given the large number of brokers and the variety of traded instruments, is there really no possibility of arbitrage between them for a mere mortal trader?
Of course you have to dig through a lot of data to compare and reveal this, but it's still better than playing a guessing game...
We need to find this arbitrage between concrete brokers, for example yesterday with comrade, being already to the close of market we found TIME arbitrage between Moex and one VERY famous broker. Come to think of it, temporary with a delay of 1-2 minutes. That's just a gold mine :-) From Monday we'll be losing it, at least we'll try it :-)
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