2-Legs Latency 1 and 2-Legs Latency 2 arbitrage bots<\/strong><\/h4>\n\n\n\nThese two strategies have a similar algorithm and are an upgrade of the lock arbitrage algorithm. Lock Arbitrage is a variant of Latency Arbitrage but the basic idea is that long before an arbitrage situation occurs, the program of lock arbitrage opens two opposite orders on the same trading instrument in different accounts. Opposite orders on the same symbol with the same (or almost the same) volume are called lacquering orders, which gave the name to lock latency arbitrage. As soon as the price at the fast broker exceeds the price at the slow broker by a given amount, on the same trading symbol, there is a buy signal. But instead of buying, we close the opposite sell order and open it a few seconds later on another account, thereby locking in a profit. And vice versa as soon as the price on the fast broker becomes less than the price on the slow broker by a certain predetermined amount, there is a sell signal and we close the buy order. This algorithm allows us to keep the orders open for a long time without fixing the profit of 1-2 points by closing the order, thereby masking latency arbitrage. <\/p>\n\n\n\n
2-Legs Latency 2 arbitrage differs from 2-Legs Latency 1 in that one account is used, which was opened with a broker and works well for Latency arbitrage, and the orders are permanently open on it, and the second account is used only for the locking orders which are constantly being reopened on this account. The description of the algorithm is also simplified for understanding the essence of a locking arbitrage robot, but in reality, it contains many additional modules allowing you to fine-tune the locking arbitrage program.<\/p>\n\n\n\n
2-Legs Latency 3 arbitrage bot<\/strong><\/h4>\n\n\n\nIs an improved, from the point of view of masking arbitrage trading from forex broker, algorithm 2-Legs Latency 1.<\/p>\n\n\n\n
2-Legs Latency 3 strategy works on two accounts, with one or different brokers, as well as 2-Legs Latency 1, but 2-Legs Latency 3 strategy never locks orders on the same trading instrument in one account. That means you won’t see two BUY EURUSD and SELL EURUSD orders in one account. Orders are opened on a low volatility market without any arbitrage situations, and 2-Legs Latency 3 does not capture 100% of profit like 2-Legs Latency 1 does when a trailing stop triggers, it only captures a part of the profit. Further, we believe that the arbitrage signal is a good signal indicating the market direction in the next few minutes or hours, a so-called impulse. For this reason, we set several profit-taking levels in the direction of the arbitrage signal. This allows you to have 50-80% of orders open or closed not at the time of the arbitrage signal and makes this arbitrage strategy well masked and bypasses all sorts of anti-arbitrage plug-ins.<\/p>\n\n\n\n
Hedge arbitrage bot<\/strong><\/h4>\n\n\n\nis not a kind of latency arbitrage and its algorithm is based on comparing quotes on two different brokers if there is a difference by a specified value, the Hedge arbitrage bot opens the arbitrage orders. For example, if the price on broker A is higher than on broker B by a given amount, the value of the arbitrage program will sell the asset on broker A and buy it on broker B, thus fixing the profit. Then the program will wait for the opposite (when the price on broker A will be lower than the price on broker B) arbitrage situation to close both of the hedging orders as you can see the strategy does not use a fast feed. The description of the algorithm is also simplified for understanding the essence of the human arbitrage robot, but in reality, it contains many additional modules allowing you to fine-tune the robot.<\/p>\n\n\n\n
What is the most suitable arbitrage strategy for me?<\/h2>\n\n\n\n Comparative table to help you choose a strategy or strategies for your needs<\/p>\n\n\n\nStrategy<\/strong><\/td>Market<\/strong><\/td>Latency<\/strong><\/td>2-legs Latency 1<\/strong><\/td>2-legs Latency 2<\/strong><\/td>2-legs Latency 3<\/strong><\/td>Hedge<\/td><\/tr> ProfitabilityForex 10 9 7 6 7 Risk of lossesForex low low ow ow low Risk to be flagged by brokerForex high medium medium low medium Min depositForex 100 200 200 500 15,000