Arbitrage - page 14
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Just call things by their proper names.
Arbitrage is opening (closing) a position in a currency and simultaneously closing (opening) a position in the same currency in another (linked) market in order to generate income due to a price discrepancy in the market.
The only difference from the above-mentioned arbitrage is that my Expert Advisors do not need to open and close positions simultaneously. In fact, you can wait for the price divergence in order to gain a profit. Only markets (currency pairs, financial instruments) should be linked to a certain currency group.
Just call things by their proper names.
Arbitrage is the simultaneous buying or selling of one currency and simultaneously buying or selling the same currency on the other (related) market in order to make a profit due to the price discrepancy on the market.
The only difference from the above-mentioned arbitrage is that my Expert Advisors do not need to open and close positions simultaneously. You can wait for the price divergence in order to gain some profit. The only difference is that the markets have to be related to some currency group.
Not the only one.
2. The income is not due to price divergence in the markets. "Market price divergence" is not taken into account by the Expert Advisor at all. Only profits, losses, and the volume of previous trades of the EA are taken into account.
3. In relation to point 2, binding of the Expert Advisor to groups has an artificial (conceivable only in the trader's mind) meaning. Well, the group may as well include any instruments - metals, indices, etc. Consequently, the condition "for the same currency in another (related) market" is not fulfilled
With "arbitrage" implemented in the Expert Advisor, it looks like in the anecdote about Armenian radio:
Is it true that academician Hambardzumyan won the 'Volga' by lottery?
-Yes. Only not an academician, but a football player and not in the lottery, but in a game of preference, and did not win, but lost, and not a Volga, but 100 rubles.
Well, the participants discussing Yuri's creations, I would just advise them to put aside all the hullabaloo from the author himself and just look at the code properly.
Well, for those of you who are discussing Yuri's creations, I would simply advise you to put aside all the hullabaloo of the author himself and just take a good look at the code.
WOW!!! The only true advice. I too have noticed that all arguments in this thread are tied to the concept of "arbitration" and its presence/absence in Yuri's EA. It would be better instead of arguments to analyze results of trading EA or its modification for your own needs, if you want, of course. Otherwise, you should leave the thread alone.
Just call things by their proper names.
Arbitrage is the simultaneous buying or selling of one currency and simultaneously buying or selling the same currency on the other (related) market in order to make a profit due to the price discrepancy on the market.
The only difference from the above-mentioned arbitrage is that my Expert Advisors do not need to open and close positions simultaneously. In fact, you can wait for the price divergence in order to gain a profit. Only markets (currency pairs, financial instruments) should be linked to a certain currency group.
That is exactly what I am talking about. You do not have to invent anything!
What does price divergence mean in this formulation? With reference to the major currencies and linked markets, it means the following:
Let us assume that at some point there is a price of E/U = 1.0000 and a price of G/U = 2.0000.
Obviously, the settlement price of E/G = 0.5000
The related market to these instruments is the E/G market, the price of which can currently (very rarely and very slightly for major currencies!) differ from the rated one, for example, 0.5001, 0.5002 or 0.4999.
This is the difference in price difference of 1 pip between the calculated 0.5000 and the actual 0.5001.
It will not be difficult at all to develop an EA tracking such differences and forming trading criteria for opening and closing orders based on this divergence and trading based on these criteria. You will get an ordinary Pips Expert Advisor.
This technology is unpromising due to two reasons
- the actual price divergence in the major currency markets is very small, often less than the spread;
- brokers will not tolerate the pips technology.
Any appreciable profits require a more substantial divergence in the related markets, but there is no such a divergence!
It is highly recommended that adherents of such "arbitrage" build for themselves, for example in XL, a chart of price differences in the related markets of the major currencies and see for themselves that there are no significant price differences.
As for the "fair price" calculated on the basis of your own accounting, this technology has nothing to do with trading at all.
I suggest those supporters to think: what does the EA in question do?
He sort of says: "Aha! I made some money yesterday, so I'm going to buy some today!"
He does this not because of any trading criteria to buy or sell, but because something happened yesterday in his accounts.
Instead of arguing, it would be better to analyse the EA's trading results or modify it to suit your own needs, if you want to. Otherwise, you may leave this thread alone.
Everyone decides for himself what to do.
I think it makes more sense to first get to the bottom of the technology, and only after that analyse the results.
Instead of arguing, it would be better to analyse the EA's trading results or modify it to suit your own needs, if you want to. Otherwise, you might as well stay away from the thread.
Everyone decides for himself what to do.
I think it makes more sense to first get to the bottom of the technology, and only after that analyze the results.
The dogs bark, the caravan comes (c) Eastern wisdom
Well, for those discussing Yuri's creations, I would simply advise you to put aside all the hullabaloo of the author himself and just take a proper look at the code.
WOW!!! The only true advice. I too have noticed that all arguments in this thread are tied to the concept of "arbitration" and its presence/absence in Yuri's EA. It would be better instead of arguments to analyze results of trading EA or its modification for your own needs, if you want, of course. Otherwise you should leave this thread alone.
First there was a word. Arbitrage. Personally I have doubts about this word. The test results only confirmed the absence of arbitrage in the Expert Advisor. After the code was provided I understood that there was no arbitrage whatsoever. The idea of the Expert Advisor is to open relatively to the initial manually set price and close only in the plus position, waiting for the market to reverse in the favorable direction. The Expert Advisor waits for such a favorable change right up to the margin call.
For Mathemat and you to come to such advice, the following should have happened. Reshetov posted his creation on an open forum, used financial vocabulary, referred to a glossary of terms, instructed those who criticized his idea, etc. in the way he pretended to be an expert on arbitrage and its implementation in advisors. However, the EA code and trading results show that the king is naked. Indirect confirmation of this is your advice (in the style of "don't listen to what Reshetov says") on page 14 of the discussion. In fact, that's what I was getting at.
What is implemented in Reshetov's advice is of no interest to me.
There is no difficulty in making an EA tracking such divergences, forming trading criteria for open and close orders on this basis and trading according to these criteria. You will get an ordinary Pips Expert Advisor.
This technology is unpromising due to two reasons
- the actual price divergence in the major currency markets is very small, often less than the spread;
- brokers will not tolerate the pips technology.
Any appreciable profits require a more substantial divergence in the related markets, but there is no such a divergence!
Advocates of such "arbitrage" are strongly advised to chart for themselves, e.g. in XL, the price differences in the related markets of the major currencies and personally confirm that there are no significant price differences.
As confirmation of these words I cite an Expert Advisor, which I took on this forum, with a log from 1 month of its operation (log from working on a real account). The price divergence may occur, but it is not that significant. That is, in the best case, it is possible to build a pipsqueak, which the broker will eventually recognise and cut off the oxygen to it.
Hello to all the participants.
I don't know what's magic and what's ordinary in this Expert Advisor, I don't really care.
For me it is no wonder that the price always bounces around something - magic levels obtained by simple drawing a line or by complicated calculations, trader glitches or something else. Of course it is a pity that a broker will not let one use such a thing in real time. And the arbitrage-unarbitrage discussion - let it be so. Let call this expert whatever you want.
One thing is important. If you want to use it, use it; if you don't want to, don't use it. If you see flaws or can do better, fix it and share with the author/people.
Everything is easier than it seems.
For example, may be the result of 3 days of working with pips in minutes for different currencies. I was too busy creating groups at the beginning, then I decided not to do it and started watching. Who prevents us from changing the starting price once a day if all is not so great with the code (I am not that good at it)...
Still trying to be neutral ... The idea is fun for me. And I'm not good at being clever :)
Symbol of the Net Profit.
USDJPY 253
USDCAD 203
GBPUSD 188