Arbitrage Trading
Page 1 of 502 12 LastLast
Results 1 to 10 of 16

Thread: Arbitrage Trading

  1. #1
    I have been applying this technique manually based this off formulation.
    You use only GBPUSD EURGBP EURUSD

    NOW. IT CAN ONLY BE A S.S.B. OR A B.B.S combination, in this order.
    Lots sizes GBPUSD uses price of EURGBP, rest of the two are 1 lots

    GBPUSD EURGBP EURUSD
    ex, LOTS S 0.95 B 1 B 1


    NEXT STEP IS DECIDING WHICH COMBO TO CHOOSE FROM? VERY IMPORTANT
    IF SSB THEN,
    SELL MARKET ORDER GBPUSD
    BUY MARKET ORDER EURUSD
    PLACE A PENDING ORDER SELLLIMIT ORDER EURGBP XX PIPS ABOVE CURRENT PRICE

    IF BBS

    BUY MARKET ORDER GBPUSD
    SELL MARKET ORDER EURUSD
    PLACE A PENDING ORDER BUYLIMIT ORDER EURGBP XX PIPS BELOW CURRENT PRICE

    AS LONG AS THE PENDING ORDER IS TRIGGER YOUR LOCKED IN A PROFITABLE ARBRITRAGE TRADE.

    I NEED A WAY TO HELP DECIDE WHICH COMBO TO CHOOSE AND IF THE PENDING ORDER IS Very Likely TO BE TRIGGERED THAT DAY. IF NOT TRIGGERED THEN YOUR IN A DEEP DRAWDOWN TILL IT RETURNS BACK, THATS WHAT I AM TRYING TO AVOID.

    ANY IDEAS?

  2. #2
    Here is an example from today just now actually on EURUSD using IBFX

  3. #3
    Quote Originally Posted by ;
    So if I know you, you are utilizing the trending effect of EURGBP, right?
    And what you need is a means to determine if you are in a probably Buy Buy Market or a Sell Sell Buy based on the trend and the likeliness of hitting the trigger EURGBP, is that right?

    If that's so, then I would suggest looking for a AB=CD formation on EURGBP where C is an retrace of no longer than .612 of AB and when the AB=CD is short you know you would like a SSB and when the EURGBP AB=CD is long you are going to want a BBS, since you can probabilistically expect a expansion of CD to...
    Yes your correct about. Put can you reveal examples of the
    AB=CD formation.

    Are you currently able to perform an indior of this sort showing where to place your limit order for EURGBP

  4. #4
    Quote Originally Posted by ;
    Yes your right about. Put can you reveal examples of this
    AB=CD formation.

    Are you currently able to do an indior of this sort revealing where to place your limit order for EURGBP
    Ok, AB=CD is a formation that's a very old pattern. What it says is you will have a stage A then a move up to a point B then a retrace to a stage C and then a move up to a point D for a very long AB=CD, for a short AB=CD it is precisely the opposite.

    Here's a diagram of this pattern. Be aware that the retrace is important, because it dictates the likelihood of where the expansion will end.

  5. #5
    You would place your activate in the B point after the C stage was made no higher than .618 retracement.

    And after that you could place a profit goal in 1.61 expansion or, since you're locking out a chance for reduction, follow the trend as much as it will go, using Support and resistance stage from past prices.

    However, as I mentioned above why do the three? The price is greater.

  6. #6
    What's that arbitrage in case it involves big risk?
    Additionally you need to get yourself a new computer keyboard. Your Capslock seems
    to be brokenup.

  7. #7
    Quote Originally Posted by ;
    You'd place your trigger at the B point following the C point had been made no greater than .618 retracement.

    And then you can place a profit target at 1.61 extension or, since you're locking out a chance for reduction, follow the trend as far as it will go, using Support and resistance point from previous prices.

    But like I mentioned above why would the three? The price is greater.
    There's no profit target set since you use the space between current price and where your pending order is placed. Ex if 15pips away then you will lock in approx $150 when all 3 are entered

  8. #8
    Quote Originally Posted by ;
    there's no profit target set as you use the distance between current price and wherever your pending order is placed. Ex if 15pips away then you will lock in approx $150 when all 3 are entered
    Ok, I see. If you want an in depth eduion on AB=CD see
    Trade What You See by Pesavento, see chapert 4

    The book is sold at Amazon and pretty cheap. It is among my favorite books for trading.

  9. #9
    Quote Originally Posted by ;
    Ok, AB=CD is a formation that's a very old pattern. What it says is you will have a point A then a move up to some point B then a retrace to some point C and then a move up to some point D for a long AB=CD, for a brief AB=CD it is precisely the opposite.

    Here's a diagram of this pattern. Be aware that the retrace is vital, because it dictates the probability of where the extension will end.
    How can you calculate this?
    From cheapest LOW to maximum HIGH or maximum HIGH to cheapest LOW?

  10. #10
    Quote Originally Posted by ;
    Here is an example from now only now in fact on EURUSD with IBFX
    You have to utilize EURGBP just for pending orders the other two sides are market orders.

    Can you return to last week and let me what where limit orders price for each day. That way I can see how you got the price out of and when it was a successfull SSB or even BBS arb.

    I just trade once a day beginning from hour IBFX.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners more information