Discussing the article: "Forex Arbitrage Trading: Relationship Assessment Panel"
All your theorising is nullified by commission costs on the FX market. You need to start with them, not with dry maths. No broker will let you make money on micro-movements even with the tightest spreads and low commissions on ECN accounts. Calculate the contribution of the average spread and commission and everything will fall into place - there will be no money there. There is no practical sense in your travelling.
It will be discussed in the second article
Does anyone trade this on MT? In my opinion there is no money in such strategies as the platform lacks a competitive advantage over the professionals trading HFT.
I trade as one of the modules of the system. There is enough profit even for regular rebalancing of the position and bringing it down to about zero delta=) I would not worry about speed and competition for ping, but about the fact that the distribution of deviations always has a strong tail to one side, and the divergence of synthetics and reals compared to the standard deviation is often huge....
All your theorising is nullified by commission costs on the FX market. You need to start with them, not with dry maths. No broker will let you make money on micro-movements even with the tightest spreads and low commissions on ECN accounts. Calculate the contribution of the average spread and commission and everything will fall into place - there will be no money there. There is no practical sense in your travails.
Absolutely so, everything has been checked already. Besides, the broker can adjust the spread size in its favour at any time, which they do.
I looked at the code from the second article. It is not connected with the first one in any way. Nowhere in the code is there even an attempt to enter below/above the fair price. It is just a usual netter throwing a sheet of orders to the mercy of fate.
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Check out the new article: Forex Arbitrage Trading: Relationship Assessment Panel.
Today I want to share my brainchild, a system for analyzing fair currency prices with an arbitrage assessment written in MQL5 for MetaTrader 5. It all started with a simple question that kept me awake one night: what if we could calculate the "right" exchange rates — not the ones that the market is giving us, but the ones that should be? Out of this curiosity, a panel was born that not only highlights price deviations from their "ideal" values, but also looks for triangular arbitrage paths — the very moments when the market loses its vigilance, and we can use it.
Translating theory into code turned out to be a real adventure — with a lot of pitfalls, countless iterations, and moments when I was ready to give up everything. Let me tell you how dry calculations turned into a living system, how the market tested me over and over again, and how I learned to visualize the results so that they speak for themselves. You will see real examples of how the panel works — with numbers, signals, and arbitrage triangles. I will honestly analyze its strengths and weaknesses, share my experience of adapting to different strategies — from single trades to multi-currency grids, which have become a real field for experimentation for me.
My goal is not just to boast of the code or show off in front of the public. I want to give you a tool — something tangible that you can take, twist in your hands, refine for yourself. I hope this panel will not only inspire you with new ideas, but also help you see the market from a different angle — not as chaos, but as a puzzle that can be solved.
Author: Yevgeniy Koshtenko