Latency Arbitrage EA 4.3
Metatrader Expert Advisor (MT4/MT5)
Latency arbitrage is a trading strategy that allows traders to make instant profits by acting fast on opportunities presented by pricing inefficiencies between two or more brokers: it entails trading against a lagging broker knowing the future price in advance, received from other price feed, fractions of a second earlier. These inefficiencies can be caused by liquidity providers or network issues on the broker's side. Under ideal trading conditions, latency arbitrage is a zero-risk strategy that requires no analysis or indicators.
- 100% self hosted
- It is very easy to use
- No installer, config files or admin permissions needed
- Trade against up to 8 brokers simultaneously
- Trade unlimited symbols or instruments
Each instance of the EA acts as price feed and trading terminal at the same time. In consequence, there is no need to find fast and slow brokers or to perform complicated measurements, unless you explicitly want to do so. The EA will trade against the broker suffering pricing inneficiencies and stay idle if not. Other features are:
- Adapts and considers the ping to the broker server
- Adapts to spread, commissions, stoplevel and freezelevel
- Trades can be closed on time expiration
- Supports unconventional symbol names
- It can place SL and TP orders for safety
- Flexible risk management
- NFA-FIFO Compliant
Originally developed in 2014 and released in 2015, the Latency Arbitrage EA has been recoded to use named files instead of memory channels, and can connect up to 8 Metatrader Terminals with dual behavior: it can read the price feed from eight brokers and trade against them all if the opportunity arises. It should be executed on a VPS in many Metatader terminals simultaneously, and in as many symbols as the trader wishes to trade.
- The price feed of each broker is adjusted to the broker server ping
- The EA won't trade if the network ping or spread and commissions make the trade unfeasible
- The EA trades with a specified slippage of one pip and requotes are to be expected
- The trading logic as been coded to avoid retries and delays
- The EA won't trade if any trading restriction is in place
Trading frequency will fluctuate depending on the network latency, spreads and commissions. It can go from many trades a day to no trades at all, if the EA considers the trading conditions not desirable. Increase the trading frequency by connecting many different brokers in a VPS.
How to get started
- Load the EA on EURUSD in Broker A. Choose "Terminal 1" in inputs.
- Load the EA on EURUSD in Broker B. Choose "Terminal 2" in inputs.
- Load the EA on EURUSD in Broker C. Choose "Terminal 3" in inputs (optional)
- Load the EA on EURUSD in Broker D. Choose "Terminal 4" in inputs (optional)
- Load the EA on EURUSD in Broker E. Choose "Terminal 5" in inputs (optional)
- Load the EA on EURUSD in Broker F. Choose "Terminal 6" in inputs (optional)
- Load the EA on EURUSD in Broker G. Choose "Terminal 7" in inputs (optional)
- Load the EA on EURUSD in Broker H. Choose "Terminal 8" in inputs (optional)
That's it! There is no need to categorize brokers as fast or slow, the EA itself will do that. Repeat the process outlined above in as many symbols as desired. Add terminals and symbols incrementally to make sure you are not losing performance by overloading your computer or VPS.
When loading the expert to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Assign a different terminal number to each broker. From 1 to 8.
- Choose how the instance of the EA behaves.
- Quote and Trade: Provides price feed for other terminals and can trade as well
- Quote Only: Only provides price feed for other terminals. (Fast Broker)
- Trade Only: Only can trade and does not provide a price feed. (Slow Broker)
- Manual Symbol
- Type the symbol name if the chart has an unconventional name.
- Choose the trade expiration time for the trade.
- Stop Loss
- Enter the precautionary stop-loss for all trades. Default is disabled.
- Take Profit
- Enter the precautionary take-profit for all trades. Default is disabled.
- Trade Triggerl
- Amount of pips to capture on each trade. A higher value will produce less trades.
- Money Management
- Choose if the EA must auto-calculate lotsizes or use a fixed lotsize.
- Risk per Trade
- Percentage of the free margin to be risked on each trade if "auto-calculated" is chosen above.
- Fixed Lotsizel
- Trade size for all trades if "fixed lotsize" is chosen in the above parameter.
- Label Color
- This is the color of the informative text labels in the chart.
- Manual Pip Value
- Use this parameter to override the pip value for this chart, if needed.
- Custom Comment
- Enter your custom comment for trades, if desired.
- Maximum slippage for the trades. Default is 10 points (one pip).
- How do I know if a broker is fast or slow?
- You don't need to categorize the brokers into fast or slow. Load the EA in many brokers, up to eight, and the EA will trade against those that offer price discrepancies and sit idle in those that do not. However, down the line, you can speed up the execution of the EA instances by selecting fast and slow brokers manually.
- Can I really trade unlimited symbols?
- In theory, yes. Metatrader will adjust the execution interval of the EA according to the amount of terminals opened, instances loaded, cpu, memory resources and hard disk r/w rates. This means that as you load the EA in more terminals and symbols, the exchange of information between terminals will slow down. At the end of the day, the amount of terminals and symbols you can trade depends on your computer and network capability. Make sure to expand the number of symbols incrementally.
- What execution type is desirable to trade this EA?
- Brokers offer three different types of order execution: instant execution, market execution and exchange execution. The best ones to trade against are the ones offering "instant execution", because they will take the slippage parameter into account and raise a requote when a trade can't be placed without slippage.
- The EA takes constant, small losses!
- In that case, you need to stop trading against that particular broker. However, if the latency to the broker server is small, you might need to keep it as price feed only, by selecting "Fast Broker" as Behavior in the inputs of the EA.
- What does a license include?
- One license allows usage from three computers or VPS.
- Which broker should I trade with?
- The EA can operate in up to 8 brokers simultaneously, so test many of them in them in sets of eight. Keep the ones offering the smallest latency to the broker server, which is displayed in the top right corner of the chart.
- What account balance should I start with?
- A very small account balance is recommended: 100$ to 500$ is enough.
- Is arbitrage allowed in all brokers?
- No, it is not. Read the terms and conditions of your broker before trading.
- Can I backtest this Expert Advisor?
- No, you can't, because the EA operates using the price feed from many brokers.
- Do I need a VPS?
- It is advisable to use a VPS to decrease the latency to the broker server.
- How many accounts can I trade with one license?
- Unlimited accounts. A license allows usage from three computers or VPS.
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