Triangular Arbitrage Advantage MT4
Triangular arbitrage is a profit that occurs when a quoted exchange rate does not equal the market's cross exchange rate. Triangular arbitrage exploits an inefficiency in the market where one market is overvalued and the another is undervalued. Price differences between exchange rates are only fractions of a cent, and in order for this form of arbitrage to be profitable, a trader must trade a large amount of capital. There may be some opportunities available on forex ECNs, however, this remains a game of the quickest so latency and collocation play a large part in determining who profits from triangular arbitrage opportunities. You will need a low spread broker with a fast execution.
Important: It is not possible to do backtest with this Expert Advisor because MetaTrader 4 does not support multi-currency backtest. Please use the same Expert Advisor version of MetaTrader 5 for backtesting here: https://www.mql5.com/en/market/product/22690
- First Triangular Pair (eg. EURUSD, GBPUSD, EURGBP)
- Second Triangular Pair (eg. GBPUSD, USDJPY, GBPJPY)
- Cross Triangular Pair (eg. EURGBP, EURJPY, GBPJPY)
- HiFPI - (High Fraction Product Inefficiency Hedge) The higher this number, the fewer trades you will see.
- LoFPI - (Low Fraction Product Inefficiency Hedge) The lower this number, the fewer trades you will see.
- Profit in pips - Take Profit in pips
- Stop loss in pips - Stop Loss In pips
- Lot Size - Contract size
- Max Spread to trade
Enjoy the EA!