User guide

Walk-through explanation of the parameters and idea behind the two expert advisors offered on website

Prerequisites

In order to ensure the correct operation of the expert advisors, you have to enable DLL imports in MetaTrader terminal settings. You also have to allow Algo Trading when using the EAs in Server mode.

Important: Always restart both MetaTrader platforms (agent and server) when switching trading accounts.

Important: All non-paying customers can get consultation on how to setup and run the EAs. This usually happens via Zoom, Team Viewer or AnyDesk. The fee is 29 € per hour (payable via Bitcoin or SEPA bank transfer, order one here). The time window of the consultation is between 09:00GMT and 19:00GMT.

Arbiter Forex Arbitrage EA

The concept behind latency arbitrage is simple - exploiting lagging quotes from a slow broker with the idea that those quotes soon will catch-up the quotes from fast broker. With such trading strategy, we can gain profits by trading in the right direction, knowing what will happen on the market ahead of time. Often, such price differences persist only less than a second, yet this is enough to open a trade and profit substantially.

Basic settings of Arbiter Forex Arbitrage EA

  1. License Number - This is the place where you enter the purchased license number in order to lift the limitation related to performing trades only on demo accounts.
  2. Operation Mode - Choose to switch from server (slow broker on which trades are made) to agent (fast broker). The Expert Advisor has to be installed on two MetaTrader platforms - one acting as a server, the other as agent on the same local computer. The agent sends price quotes from fast broker to the server from the predefined currency pair, stock index or stock. If price discrepancy occur between slow and fast broker, the EA attached on server will open position with defined stop-loss and take-profit values.
  3. Server Port - On which port should agent and server communicate. The chosen port must be unused by other software.
  4. Server Hostname / IP Address - How and where to connect to the server. The second MetaTrader terminal can be located at remote location. This is not recommended for arbitrage trading, because of the high latency. If this terminal is on the same computer, leave this setting to "localhost".
  5. Broker Color - In which color should the price lines from agent (fast broker) be displayed on server(slow broker) chart. This is used for important initial price alignment.
  6. Corresponding Symbol on Server - Which trading symbol should be arbitraged on server (slow broker). Trading instruments between brokers can differ in their names, here is the place to specify the symbol on the server (slow broker).
  7. Trading Start (Hour) - The hour at which to start placing trades. This is the beginning of the time window for automated trading.
  8. Trading Start (Minute) - The minute at which to start placing trades. This is the beginning of the time window for automated trading.
  9. Trading End (Hour) - The hour at which to stop placing trades. This is the end of the time window for automated trading. This time window is based on slow broker's server time with corresponding time zone.
  10. Trading End (Minute) - The minute at which to stop placing trades. This is the end of the time window for automated trading. This time window is based on slow broker's server time with corresponding time zone.
  11. Trade Type - Instructs the EA to execute only buy orders, sell orders or both.
  12. Refresh Interval - Sets frequency of communication between server and agent. The faster, the better. Note that here are physical limitations related to speed of communication, it depends on factors like geographical location, broker, computer on which MetaTrader terminals is run - i.e. the hardware, etc. Fastest possible communication is possible when both platforms are located on the same computer.
  13. Auto Price Alignment - In "Server" mode this setting instructs the EA to periodically adjust starting point of prices of slow and fast broker in order to compensate any deviations during trading session.
  14. Manual Price Alignment (+/- points) - In "Server" if you set auto price alignment to "Disabled", then you need to manually align price quotes between Agent and Server (dotted lines on chart must be as close as possible to bid/ask on slow broker) for given instrument. Why is so important to properly align prices? Because we must set the equal starting point of prices between slow and fast broker in order to calculate price deviations and make trade decision.
  15. Gap size (in %) - In "Server" mode this value is used to trigger the trade - if there is a gap between prices of slow and fast broker more than selected percent. During highly volatile sessions the default value of 15 can be increased to 25-35 and vise-versa.
  16. Maximum Position Holding Time (seconds) - Opened position by the EA will be closed automatically after the defined amount of time.
  17. Auto Volatility Filter - In "Server" mode this instructs the EA to automatically calculate if current market volatility is sufficient before opening new position in order to avoid fake trade signal because of the market noise.
  18. Manual Volatility Filter (points) - Manually set volatility threshold as points in respect to current symbol in order to protect yourself from market noise.
  19. Turbo Mode - In this mode the EA will not set SL and TP levels, instead positions will be closed only after maximum position holding time was reached or if as soon as current profit of the position become positive. All positions in this mode are closed very quickly (sometimes under 1 sec.), utilizing the price discrepancy between brokers more efficiently.
  20. Stop Loss (points - not used in Turbo Mode) - The protective stop-loss in points used to preserve the account capital. This parameter has no effect when EA operates in Turbo Mode.
  21. Take Profit (points - not used in Turbo Mode) - Profit target in points. The trades are closed either by stop-loss or by take-profit. Do not set this value too close to the current price. Recommended SL/TP ratio is 2:1. This parameter has no effect when EA operates in Turbo Mode.
  22. Lot Size - The volume of every position, adjust this according your risk management and account balance.
  23. Display Log - For debugging purposes, displays in MetaTrader journal messages from the process of the EA.
  24. Enable Alerts on Deal - Display alert messages in MetaTrader platform when a trade is made by the EA. Use this to get an idea if current slow broker can be exploited by arbitrage without opening a trade (remember to disable Algo Trading in MetaTrader platform first before using this).

 

Example parameters of the Arbiter Forex Arbitrage EA

One important part of the setup process of the Arbiter Forex Arbitrage EA is the price alignment offset. Since the quotes of the slow broker always try to catch-up quotes of the fast broker, we have to initially align them (set the equal starting point). If quotes from the fast broker are not properly aligned with the quotes from slow broker, false trading signals may be generated, leading to losing trades. Keep an eye during the trading session on the EA and - if needed - adjust manually this offset.

 

Video

Watch how to setup and use Latency Arbitrage Expert Advisor on Demo trading account. The EA is attached on two MetaTrader platforms, one acting as a server (slow broker), the other as a client (fast broker). Using separate versions at the same time of the MetaTrader platform, MetaTrader 5 and MetaTrader 4. Both trading terminals are installed on the same physical computer, which provides the ability to fill deals under 40 ms.