fx brokers arbitrage kit

We explained about FX Brokers Arbitrage Test KIT in our article: click to read

in this article we would like to elaborate in more detail how to analyze the data obtained from the indicators

Difference Indicator


When arbitrage situation appears, difference indicator will draw bar from dots.

arbitrage difference
 
First of all you need to check how big difference appeared. In my example I use Min difference = 15 points and 5 dots means that difference between price on fast feed and MT4 brokers  was 20 points (15+5). Red colour for  dots means that difference disappeared on the same M1 candle.

Analyzing several signals, you can optimize the values of stop loss, trailing stop, take profit, but you should consider spread for each signal.
Spread Indicator
 
In our example Value = 4 points (0.4 pips) shows that we can set Stop Los = 0.8 (pips for standard lock arbitrage software) or 80 (points for VIP Lock Arbitrage Software version), but you should analyze several arbitrage situations to make right decision. You can also check Max and Average values.

average for arbitrage indicators


Execution time Indicator


Execution time indicator shows how long timeframe between you have sent order and when order will be executed on MT4 server. You should also check this time for arbitrage situation.

execution time
 
In our example execution time during arbitrage situation = 83.8 ms.  To make any conclusions, you need to check this value for several arbitrage situations. You can also compare it with average value.
Usually execution time up to 250ms is good for arbitrage, but most important to check slippage due to this execution time.


Slippage Indicator

Slippage Indicator
 
You need to check slippage on the next bar after arbitrage situation, we calculate the slippage already at that bar on which order would be executed. In our example slippage = 6 points. It means that if we send order with price 1.35000,  BUY order will be executed by price: 1.35000 + 6 = 1.35006   and SELL order will be executed by price: 1.35000 - 6 = 1.34994 It helps you to analyse how slippage can affect your strategy and find the best value for min profit etc.
Usually good slippage for arbitrage between 0  and 10. Higher slippage can destroy arbitrage strategy.