the broker's strange condition to prohibit certain strategies

 

Preis Arbitrage Strategien sind in Mini-Konten nicht erlaubt. Nur FXCM legt fest, was eine Preis Arbitrage Strategie ist. Mini-Konten bieten ein Spread plus Markup-Modell. Spreads sind variabel und unterliegen Verzögerungen. Mini-Konten, die verbotene Strategien anweden, können stillgelegt werden.


The main thing is: Prices arbitrage on mini accounts, DD accounts are banned!!! Only the company decides what the price arbitrage is...traders who are found guilty of arbitrage strategies will be sentenced to hanging and imposing a stake on both sides and their accounts will be frozen until the facts are clear...


i.a. the problem of arbitrage is very big ... i can't see why the brokers are banned ... i feel that the profitability of arbitrage strategy is very high and they are afraid of it ... i bet they are going to lose money with it ... If i didn't notice it it's because they are always playing against brokers on mini accounts ...

any thoughts on this? what kind of arbitrage are we talking about? what do they mean pair/basket trading? ............. three-point arbitrage synthetic.cross/cross? ...... it knows.....

 
nowi:

Preis Arbitrage Strategien sind in Mini-Konten nicht erlaubt. Nur FXCM legt fest, was eine Preis Arbitrage Strategie ist. Mini-Konten bieten ein Spread plus Markup-Modell. Spreads sind variabel und unterliegen Verzögerungen. Mini-Konten, die verbotene Strategien anweden, können stillgelegt werden.


The main thing is: Prices arbitrage on mini accounts, DD accounts are banned!!! Only the company decides what the price arbitrage is...traders who are found guilty of arbitrage strategies will be sentenced to hanging and imposing a stake on both sides and their accounts will be frozen until the facts are clear ...


i.a. the problem of arbitrage is very serious... i can't see why they are prohibiting certain types of arbitrage on Dealing Desk accounts... i.e. there is a clearly profitable strategy that they are afraid of and they will definitely lose money on it ... because on mini accounts it's always a game against the broker ...

any thoughts on this? what kind of arbitrage are we talking about? what do they mean pair/basket trading? ............. three-point arbitrage synthetic.cross/cross? ...... it knows.....


Because arbitrageurs took a lot of money out of them, it lasted literally until the last six months, then they blocked that option

"And I was there drinking honey beer :D" They mean latency arbitrage and spread arbitrage. Thousands of % per month. Pairwise doesn't give that kind of return and 3 point a priori only works on quote glitches.

 
Maxim Dmitrievsky:


Because arbitrageurs took a lot of money out of them, it lasted literally until the last six months, then they blocked that possibility

"And I was there drinking honey beer :D" They mean latency arbitrage and spread arbitrage. Thousands of % per month. Pairwise doesn't give that kind of return and 3 point a priori only works on quote glitches.


Latency arbitrage in private person trading via forex broker?????

HOW?

Well, with stock exchanges it's clear - trading servers directly in exchange buildings, high-speed communication channels, depth of order books of institutional clients, but with a forex broker, HOW?

 
Дмитрий:


Latency arbitrage when trading individuals through a forex broker?????

HOW?


how what? ) latency tolerant... i.e. at the limit of the possible execution speed the office gives

they also have a fix api

 
Maxim Dmitrievsky:

what like? ) latsy tolerant... i.e. at the limit of the possible execution speed that the office gives


So it's the same for all clients - what's the advantage???

Or do you mean regular high-frequency trading?

 
Дмитрий:

So it's the same for all clients - what's the advantage???


everyone's equal there, with kitchen run orders where trades don't go anywhere

The usual latsy arbitrage on lagged quotes

 
Maxim Dmitrievsky:

Everybody is equal there, with kitchen-like execution of orders, when deals don't go anywhere.


) So what is "latency arbitrage" all about?

Latensi arbitrage on a stock exchange - its own high-speed communication channels, its own servers in the back of the exchanges, access to bids from institutional clients, etc.

And here? Ordinary high-frequency trading?

Is lagging quotes paired trading with two brokers?
 
Дмитрий:


) So what is "latency arbitrage"?

Latensi arbitrage on a stock exchange - its own high-speed communication channels, its own servers in the back of the exchanges, access to bids from institutional clients, etc.

And here? Ordinary high-frequency trading?

Latency quotes are paired trading with two brokers?


Yes, between a broker with leading quotes and a broker with lagging quotes. For example fast quotes are taken from CME and arbitrated by slow fx brokers

Well, the broker's condition to ban is a regularity, not nonsense, otherwise they'll be left in their pants and will lose business ) ) There are a lot of arbitrage brokers nowadays.

i don't think they've already been sued for manipulation... but seems that there is no critical mass of requests to influence somehow... in theory, these bans are artificial and express the unfair work of such organizations when trades are not moved anywhere, otherwise there wouldn't be a conflict of interest

 

Back in the day, if I'm not mistaken, the Rockefellers used this technology: In the days before telecommunications, Rockefeller couriers on horseback delivered important economic news for literally hours (days), not importantly, than others received it. This gave them a chance to play the stock market and make fortunes. Why do I bring this up?

So called "arbitrage", arbitrage advisors are just programs which allow to get rate data from "fast brokers" and use this data with slow brokers. The difference there is literally on the order of 10 seconds, but if you correctly place VPS with ping at 10 milliseconds and take the final broker of standard type with fixed fleet from slower broker, then really dumb scalping with good profits of 100% and above per month.

However in essence this is just a high tech scam. Such programs become quickly known and a number of VPS on their home page are warning about a ban on placing the program. By the way, the idea might have worked well about ten years ago, now the difference in the speed of quotes from brokers is getting smaller and smaller.

 
Maxim Dmitrievsky:


Yes, between a broker with leading quotes and a broker with lagging ones. For example fast quotes are taken from CME and arbitrated by slow fx brokers

And a broker's condition to ban is a pattern, not nonsense, otherwise they'll be left in their pants and lose business.) There are a lot of arbitrage brokers these days.

i>- If you've got a good idea, you should sue them... they've already been sued for manipulation... But, apparently, there is no critical mass of requests to influence somehow... in theory, these bans are artificial and express the unfair work of such organizations when transactions are not output anywhere, otherwise there wouldn't be a conflict of interest


They can't physically withdraw forex trades anywhere - the minimum lot on the interbank is $100,000. Not virtual (leverage), but real.
 
Дмитрий:

They can't physically withdraw forex deals anywhere - the minimum lot on the interbank is $100,000. Not virtual (leverage), but real.


Why argue with a man who was able to implement such a strategy? the fact is - there is a program that does it ... and has a good reputation in the market ... so it works ... that's it ... what else is there to argue about ...

Besides, if arbitrage could not be applied and did not work, there would be no such warnings from cowardly and sneaky brokers...