PZ Latency Arbitrage EA MT5
Latency arbitrage is a trading strategy that allows traders to make instant profits by acting fast on opportunities presented by pricing inefficiencies between two or more brokers: it entails trading against a lagging broker knowing the future price in advance, received from other price feed, fractions of a second earlier. These inefficiencies can be caused by liquidity providers or network issues on the broker's side. Under ideal trading conditions, latency arbitrage is a zero-risk strategy that requires no analysis or indicators.
- 100% self hosted
- It is very easy to use
- No installer, config files or DLLS used
- Trade against up to 8 brokers simultaneously
- Trade unlimited symbols or instruments
- Adapts and considers the ping to the broker server
- Adapts to spread, commissions, stoplevel and freezelevel
- Trades can be closed on time expiration
- Supports unconventional symbol names
- It can place SL and TP orders for safety
- Flexible risk management
- NFA-FIFO Compliant
Originally developed in 2014 and released in 2015, the Latency Arbitrage EA has been recoded to use named files instead of memory channels, and can connect up to 8 Metatrader Terminals with dual behavior: it can read the price feed from eight brokers and trade against them all if the opportunity arises. It should be executed on a VPS in many Metatader terminals simultaneously, and in as many symbols as the trader wishes to trade.
- The price feed of each broker is adjusted to the broker server ping
- The EA won't trade if the network ping or spread and commissions make the trade unfeasible
- The EA trades with a specified slippage of one pip and requotes are to be expected
- The trading logic as been coded to avoid retries and delays
- The EA won't trade if any trading restriction is in place
Trading frequency will fluctuate depending on the network latency, spreads and commissions. It can go from many trades a day to no trades at all, if the EA considers the trading conditions not desirable. Increase the trading frequency by connecting many different brokers in a VPS.
How to get started
- Load the EA on EURUSD in Broker A. Choose "Terminal 1" in inputs.
- Load the EA on EURUSD in Broker B. Choose "Terminal 2" in inputs.
- Load the EA on EURUSD in up to 8 brokers with a different terminal input value.
That's it! The EA will trade pricing inneficiencies whenever they arise on any terminal.
Repeat this process in as many symbols as desired.
- Terminal: Assign a different terminal number to each broker. From 1 to 8.
- Behavior: Choose how this instance of the EA behaves.
- Quote and Trade: Provides price feed for other terminals and can trade as well.
- Quote Only: Only provides price feed for other terminals. (Fast Broker)
- Trade Only: Only can trade and does not provide a price feed. (Slow Broker)
- Manual Symbol: Type the symbol name if the chart has an unconventional name
- Expiration: Choose the trade expiration time or disable the feature
- Stop Loss: Enter the precautionary stop-loss for all trades
- Take Profit: Enter the precautionary take-profit for all trades
- Trade Trigger: Amount of pips to capture on each trade. A higher value will produce less trades.
- Money Management: Choose if the EA must auto-calculate lotsizes or use a fixed lotsize.
- Risk per Trade: Percentage of the free margin to be risked on each trade if "auto-calculated" is chosen above.
- Fixed Lotsize: Trade size for all trades if "fixed lotsize" is chosen in the above parameter.
- Label Color: This is the color of the informative text labels in the chart.
- Manual Pip Value: Use this parameter to override the pip value for this chart, if needed.
- Custom Comment: Enter your custom comment for trades.
- Slippage: Maximum slippage for the order