Pair trading and multicurrency arbitrage. The showdown. - page 279

 
Irina Kolosova #:
You wrote correctly. It is, we have our own prefabricated signal in us. But it is in fact interspecies arbitrage. And latency is there too, as the delay of signal and fact on the instrument is present.

I don't know how your specific prefabricated signal works, but there are some trade local trade copiers that work rather fast across multiple local terminals. This is actually a necessity for me because there are no multiple market/exchange MT5 broker-dealers in my home country. If you're running multiple symbols/charts in one terminal, cross-terminal copying might be faster.

 
Ryan L Johnson #:

I don't know how your particular off-the-shelf signal works, but there are some trading local copiers that work pretty fast across multiple local terminals. For me, this is actually a necessity because there are not several MT5 market/exchange broker-dealers in my country. If you are working with multiple symbols/graphics in the same terminal, cross terminal copying might be faster.

You've hit the mark. Good for you. We generate a signal only on one broker, which has stocks and instruments that are not available on other brokers. And yes, we copy the finished signal to our other brokers via fxblue. Your statement that copyers are local or inter-server fast is a mistake, there are no such without a delay of at least 300 ms. It is easier not to fill your head with rubbish, fxblue max exchange 420 ms, we are satisfied with it.
 
Irina Kolosova #:
You've hit the mark. Good for you. We generate a signal only on one broker, which has stocks and instruments that are not available on other brokers. And yes, we copy the finished signal to our other brokers via fxblue. Your statement that copyers are local or inter-server fast is a mistake, there are no such without a delay of at least 300 ms. It is easier not to fill your head with rubbish, fxblue max exchange 420 ms, we are satisfied with it.

"Transmission between sender and receiver is more or less instant; the time taken to copy the trade should depend almost entirely on your broker(s), not on the speed of transmission between the two EAs."

False advertising?

To be clear, I don't use that copier and I'm not here to promote the one that I do use... and I did not mention "inter-server." It's easier to read before you post.

 
Ryan L Johnson #:

"Data transfer between sender and receiver is more or less instantaneous; the time it takes to copy a trade should depend almost entirely on your broker(s), not on the speed of data transfer between the two EAs."

False advertising?

To be clear, I don't use this copier and I'm not advertising the one I use.... And I didn't mention "inter-server". It's easier to read before you write.

"Data transfer between sender and receiver is more or less instantaneous; the time it takes to copy a trade should depend almost entirely on your broker(s), not on the speed of data transfer between the two EAs." - is a lie!!! fxblue has a latency of 400 ms! We fxblue is not advertising and he is lying. But we are satisfied with it. We have our own copier of 200-300 ms delay. Read and write carefully, for future advice.
 
Irina Kolosova #:
You hit the mark. Good for you. We form a signal only on one broker, where there are stocks and instruments, which are not available in other brokers. And yes, we copy the ready signal to our other brokers via fxblue. Your statement that copyers are local or inter-server fast is a mistake, there are no such without a delay of at least 300 ms. It is easier not to clutter your head with rubbish, fxblue max exchange 420 ms, we are fine with that.

420 ms is really a lot. You need to use other exchange options. There are plenty of articles on this forum and examples in the codebase.

A signal obtained on one broker through a bunch of maths is used on another. I am 100% sure that direct comparison of prices of 2 identical instruments on news will give the same effect.

In real trading, a broker can cancel all profitable trades executed in such a short time.

 
Irina Kolosova #:
We have our own copier of 200-300 ms delay.
Irina Kolosova #:
[W]e copy the finished signal to our other brokers via fxblue.

Irina Kolosova #:
[T]here are no such without a delay of at least 300 ms.

That certainly explains your lofty total latency.

200 to 300 + 300 = 500 to 600, by the way.

 
Renat Akhtyamov #:

420ms is really a lot. You need to use other exchange options. There are plenty of articles and examples in the codebase on this forum.

A signal obtained on one broker through a lot of maths is used on another. I am 100% sure that direct comparison of prices of 2 identical instruments on news will give the same effect.

In real trading, a broker can cancel all profitable trades executed for such a corSee below.

See trades on alfik, there was an entry for 3000ms before the signal was worked out. ""It is 100% sure that direct comparison of prices of 2 identical instruments on the news will give the same effect.""" - give me an example.

 
Ryan L Johnson #:

This, of course, explains your high overall latency.

200 - 300 + 300 = 500 - 600, by the way.

No... The total latency is 400ms!!! That's only in the copier. We're not interested in anything else
 
Renat Akhtyamov #:

420 ms is really a lot. You need to use other exchange options. There are plenty of articles on this forum and examples in the codebase.

A signal obtained on one broker through a bunch of maths is used on another. I am 100% sure that direct comparison of prices of 2 identical instruments on news will give the same effect.

In real trading, a broker can cancel all profitable trades executed in such a short time.

Irina Kolosova #:
[G]ive me an example.

Here I go again on the meanings of words...

It depends on what is meant by the words, "identical instruments." Note that Renat Akhtyamov did not say, "identical symbols," even though 2 different broker-dealers can and do offer the same symbol. Therefore, an ECN broker-dealer's FX instrument may not be a CFD broker-dealer's FX instrument─an ECN broker-dealer is connected to the interbank FX market, while a CFD broker-dealer only has a captive liquidity pool. This is a unique characteristic of OTC markets. In contrast, a centralized exchange listed instrument will always share the same pricing and execution because that is determined by the exchange─assuming that the exchange is well regulated. Here, the broker-dealer is merely a middleman with an extra commission. Make what you will of this.

Interestingly, Renat Akhtyamov also used the word, "exchange." Centralized exchange? Signal exchange?

 
Ryan L Johnson #:

Here I go again about the meanings of words.....

It depends on what you mean by the words "identical instruments". Note that Renat Akhtyamov did not say "identical symbols", although two different broker-dealers can and do offer the same symbol. Thus, a broker-dealer's ECN currency instrument may not be a broker-dealer's CFD currency instrument - an ECN broker-dealer is linked to the interbank foreign exchange market, while a CFD broker-dealer only has its own liquidity pool. This is a unique characteristic of OTC markets. In contrast, a centralised exchange-traded instrument will always have the same price and execution because they are determined by the exchange - provided the exchange is well regulated. Here, the broker-dealer is just an intermediary with an additional commission. Make of that what you will.

I wrote above, direct, price arbitrage is not possible at this time. Give an example of such trading!!!