Triangle Arbitrage Hedge
- Experts
- AL MOOSAWI ABDULLAH JAFFER BAQER
- Version: 1.2
- Activations: 5
Triangle Arbitrage Hedge
Please Note: This Expert Advisor is provided as a foundational tool for traders interested in exploring the concept of triangular arbitrage. It is not pre-optimized. The settings are fully customizable, allowing you to test, research, and tailor the strategy to your specific needs and broker conditions.
The Strategy Explained
The core logic of this EA is based on triangular arbitrage, a method that seeks to identify and capitalize on pricing inefficiencies across three different currency pairs. In a perfectly efficient market, the exchange rate between two currencies should be the same regardless of how it is derived. However, small, temporary discrepancies can occur. The EA monitors a user-defined trio of currency pairs (e.g., EURUSD, USDJPY, and EURJPY) to find these moments.
It works by calculating a "synthetic" rate from the first two pairs and comparing it to the market rate of the third pair. If a profitable discrepancy is found that exceeds the user-defined minimum profit and spread thresholds, the EA will execute three simultaneous trades to lock in the difference.
There are two primary scenarios the EA looks for:
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Buy Path: The EA will simultaneously Buy Symbol 1, Buy Symbol 2, and Sell Symbol 3.
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Sell Path: The EA will simultaneously Sell Symbol 1, Sell Symbol 2, and Buy Symbol 3.
Key Features
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Flexible Arbitrage Configuration: Define any three currency pairs for the arbitrage calculation. You have full control over the MinProfitPercent required to trigger a trade and the MaxSpreadPercent to avoid trading in volatile conditions.
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Comprehensive Risk Management: Choose between a LotSize for fixed-volume trading or a dynamic RiskPercent to calculate lot sizes based on your account balance. Conventional StopLossPips and TakeProfitPips can also be applied to each trade individually.
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Advanced Exit Logic: The UseStrategyExit parameter allows the EA to manage the three open positions as a single basket. It can close all trades once the initial arbitrage opportunity has vanished or reversed, aiming to secure the net profit. This can be disabled to rely on the standard Stop Loss and Take Profit levels.
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Informative On-Chart Panel: A clean, easy-to-read dashboard displays the EA's status (Monitoring, In Arbitrage), current market prices for the selected pairs, the real-time profit opportunity, and the running profit/loss of open trades.
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Execution Safeguards: Control trading frequency with MinBarsDelay to prevent opening new deals too quickly, and set your preferred Slippage tolerance for order execution.
Important Considerations
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Broker and Latency: Triangular arbitrage is highly sensitive to execution speed and trading costs. This strategy is heavily dependent on a broker with consistently tight spreads and a low-latency connection. Using a Virtual Private Server (VPS) located physically close to your broker's server is strongly recommended for optimal performance.
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Optimization is Key: The default settings are for demonstration purposes only and are not a recommendation for live trading. You are encouraged to perform extensive backtesting and forward testing on a demo account to find the optimal parameters for your chosen currency pairs and broker environment.
Thank you for considering the Triangle Arbitrage Hedge EA. I am dedicated to creating practical and transparent tools for traders.
For more of my products, please visit my MQL5 profile: https://www.mql5.com/en/users/1218858/seller