After the article: 'How to earn if broker offer welcome bonus or revenue share"  publication, we received a lot of questions about the setup.

We would like to explain that we described a setup method in the following article This is used for VIP Lock Arbitrage or Standard lock arbitrage, and this video: "VIP MultiLeg Arbitrage IB Commissions setup"  shows the process for Multi-Leg Lock arbitrage.

And I would like to explain what the difference is and why these methods will work.

Method 1 described in article

For the setup you need:
1. VIP Lock Arbitrage or/and VIP Lock Arbitrage.
2. VPS with several extra IP addresses.
3. IPs changer.
4. IB account with commissions 50+ % from markup + commissions.
5. Two or more accounts with the same broker opened via IB link.

Example 1

• You have two accounts with the same broker, and you add them to VIP Lock Arbitrage via IPs changers software.
• Average markup plus commissions for several trading instruments, which you will add to arbitrage equal to 15 points.
• You do not have any IB commissions.

When you adjust the arbitrage (diff to open, trailing stop, stop loss…), you need to cover spread, commissions and make profit. After several days or weeks (dependant on a lot of factors) dealer which oversees several accounts including yours, can make decisions to increase the execution time for you, because you are winning. After this your slippage will be higher and your trading will be unprofitable.

Example 2

• You have two accounts with the same broker and you add them to VIP Lock Arbitrage via IPs changers software.
• Average markup plus commissions for several trading instruments, which you will add to arbitrage equal to 15 points.
• Your IB commissions 80% from markup and commission.

In this case, you need to adjust the software to cover 20% of markup and commission and make profit.

After several days, your dealer can make a decision to leave you alone because you are not winning. You use arbitrage opportunities only to cover the spread or part of spread. For example, if the profit from arbitrage trading from one order is approximately equal to –4$, you trade 1 standard lot and your commission will be 80% from 15 points = approx. $12. Your total profit = 12-4 = $8
If your sum deposit on locked accounts = 10,000 and you will your deposit after 2,500 lots (10,000/4 =2,500), you will win approx. 2,500 x 8 -10,000 = 10,000

IB Manager (manager who works with IB partners. The dealer and manager may not even know each other) will pay you commissions.

Method 2 described in Video

For the setup you need:
1. Hedge Arbitrage or VIP Multi-Leg Arbitrage.
2. VPS with several extra IP addresses.
3. IPs changer.
4. IB account with commissions 50+ % from markup + commissions.
5. One or more accounts opened via IB link.
6. One account for hedge.

This method will work only if IB commissions > then spread + commissions for one or several currencies.