Over the past few years, interest arbitrage trade has increased dramatically. When dealing with a large number of customers who use arbitrage trading techniques, I can say with confidence that the arbitration methods still remain one of the most lucrative and low-risk. 

Although the trader needs to understand that he is facing a number of problems when using latency arbitrage. Like any profitable strategy, arbitrage is an unwanted strategy for forex brokers, especially if the dealer makes a mistake and switches an account into B-book, and in this case loses money.

Brokers use a variety of methods to make arbitrage strategy unprofitable. The simplest of these is the introduction of additional delay, or slippage. if a trader uses pending orders, the broker can not execute them to explain the lack of liquidity.

After receiving feedback from a large group of traders, who use our Latency Arbitrage Software, we can see that about 52% of them still manage to make money on a consistent basis, and another 33% earn but not always. You must agree that this is a great statistic compared to the general statistics of the forex market, where 95% of traders lose their money. 

latency arbitrage software

What is the difference between traders who are successful and are not successful   in the use of arbitrage strategies?

  1. they do not ask and do not disclose the operating brokers, and check trading conditions themselves and thus do not create a huge toxic flow for this broker, forcing him to use anti-arbitrage plug-ins;
  2. before using the latency arbitrage software, they study all possibilities and subtleties;
  3. they trade only several of the best symbols for each broker;
  4. they offer some new ideas.

 

Probably what I have written above should be clear to every trader - to be successful you need to make an effort. However, it should be clear and not only for traders.  If you mow the lawn and have not learned how the mower works, you are likely to slice your feet. :-)

Based on the wishes and recommendations of successful traders over the past few months, we have made a few additional options and add-ons. 

New feeders 

First of all we have added new symbols (according to our and our clients opinion, it is better to trade exotic currencies, and indexes, and CFDs) and new feeders based on traders feedback and now I can say with confidence that we broadcast the fastest feed from live accounts via FIX API, that will satisfy all your needs for arbitrage trading.  5 feeders are available now from 4 different sources

 Latency Arbitrage Free Feeders

Feeder # 1 (location London, UK)
Available symbols: EURUSD, GBPUSD, EURJPY, AUDUSD, USDCAD, USDCHF, USDJPY, NZDUSD, UK100, WS30, SPX, NDX, GDAXI, FCHI, STOXX50E, J225, AUS200, HSI, SPN35, XAUUSD, XTIUSD, XBRUSD.

Feeder # 2 (location London, UK)
 Available symbols: AUDUSD, EURUSD, EURJPY, GBPUSD, NZDUSD, USDJPY, USDCHF, USDCAD, XAUUSD, EURNOK, USDNOK, EURSEK, USDSEK, EURTRY, USDTRY, EURMXN, USDMXN

Feeder # 3 (Location London, UK)
Available symbols: EURUSD, AUDUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY
Feeder # 4 (Location NY, US)
Available symbols: EURUSD, GBPUSD, USDJPY, EURJPY, AUDUSD, USDCHF, NZDUSD, USDCAD, XAUUSD, EURNOK, USDNOK, EURSEK, USDSEK, EURTRY, USDTRY, EURMXN, USDMXN, GDAXI

Feeder # 5 (Location NY, US)
Available symbols: EURUSD, AUDUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY

 

New Options

latency arbitrage new options

  1. “Connect on startup” - this option allows you to autoconect to broker when you start software. It is very useful if your server (vps) reboots for some reason (this option is free with standard license)
  2. “Allowed direction” –  you can adjust software to only buy, or only sell orders. This option is very useful if you trade indexes or CFDs. (this option is free with standard license)
  3. “Handmode emulation” – this option allows you to emulate manual trading instead of EAs (automated) trading. It is very useful if your broker doesn’t allow automated trading. (for an extra fee) learn more...
  4. “Offset autocalculation” – this options allows you to trade CFDs and Indexes, because there is a constant price difference for CFDs and Indexes on fast feed and on slow broker. (this option is free with standard license)
  5. NAlgo”  new trading algorithm. This algorithm helps to avoid broker intervention (slippage). (for extra fee). It was developed based on our and our clients experience. Software places pending orders (limit and stop orders) only based on innovate trading algorithms. This software tests brokers and places the right type of order. You can adjust distance between price and pending order and pending orders life time.  (for extra fee) learn more...

Currently, we see several ways to improve the arbitrage trading and among them is the use of new non-standard algorithms with the possibility to control slippage, and for this reason we have created NAlgo and CTrader Arbitrage.

 

Good luck!