Trading on the price difference between two brokerage companies - page 5
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And how do they know that the funds are earned this way ????
Maybe this is a dumb question, enlighten the ignorant.
fozi, I explained it on page 2.
I tried a similar Expert Advisor at one time, about a year ago. My conclusions were disappointing: it was only profitable on demo trades ! ... I don't know what was the reason ... Most likely the difference in quotes on the demo and on the real ...
arbitrage data taken from here: http: //www.bostontechnologies.com/
This is very easy. If you trade using this methodology, then (as hrenfx has already explained above ) your trades will open on small spikes in 90 per cent of cases! This is very easy to track.
It is no secret that almost all DCs filter datafeed. There are a lot of filtering methods. Below I will describe one of them, which is used by cheaters for inter-dealing arbitrage (I dabbled once). The idea of it is in the fact, that with a sharp market price movement from liquidity providers (for example, if the price moved more than 4-5 points within a tick), the price, transmitted into the terminal, is delayed till the next tick or for some ticks/seconds/milliseconds. It is done mainly to filter out spikes, otherwise other traders will catch spikes on spikes and the DC will be tired of fighting with them. The screenshot shows two such moments with former GEPs on a fast market. The price relayed to the MT4 terminal is lagging at the upper point on the screenshot. At that moment the real price of the liquidity providers and ECN is already at the lower point on the screenshot. Anticipating the things, we should say that broker server "remembers" such moments and use them to calculate cheaters. What do arbitrageurs do? Having detected a difference in quotes between a slow brokerage company and an exemplary datafeed of more than N points (sensitivity is adjusted from 5 to 10), an EA gives an order to open a position in the direction of the GAP. As a rule, at such moments the brokerage company server kicks back the order: Re-Quote, Off-Quotes, Old Tick, Invalid Price, etc. - Any errors are used. However, it happens that the orders are successful even on the real server at the N-th attempt. If the order is successfully opened, the position is sure to be potentially profitable by 5-7-10 points, though the price is lagging behind the brokerage company. At a certain moment of time (when the price slows down), prices align and in 80% of positions that are opened, they have a real profit. It only remains to trawl this profit or fix it from the market. The biggest problem is to withdraw this profit from a real account, since it was earned illegally. It should be added that similar GEPs are filled evenly on charts within several minutes and it looks like there was no GEP at all. Nevertheless, these GEPs do exist in the memory of brokerage companies.
This opus is intended to save those who suffer from loss of time, nerves and money by trying it out on a real account. Even if you manage to earn something, you will not be able to withdraw more than $ 5-10. Proven.
If someone is catching profit on such a brokerage, why is it suddenly illegal? ( a thief steals from a thief !)
It's like we don't stand a chance... It is a shame. And it is nice how the account looks like... Eh
It's like we're not going to get anything... It's a shame. It's a nice score, though... Eh
It is a shame that any profit can be declared illegal by the CD if they want to ! no matter what trading method it was made with !
What if you make your own brokerage company? And earn their own money ... That's a thought.
What if you make your own DC? And earn your own money... That's the idea.