The strategy of Arbitrage

Is there anyone who used the arbitrage strategy but not by an ea?

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not me but my friends. some traders have used arbitrage strategies without using an Expert Advisor (EA). However, manual arbitrage trading can be challenging and time-consuming, as it requires constant monitoring of multiple markets to identify and take advantage of price discrepancies. Additionally, manual trading may be less efficient than using an EA, which can execute trades automatically and faster. However, some traders prefer manual trading as they have more control over their trades and may be able to take advantage of opportunities that an EA may miss.

no i didnt, have you used so far? did you find something that you can share with us?

Arbitrage does not exist for retail traders not any arbitrage strategy, the only arbitrage that exist for us is sport betting arbitrage.

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Thank you for your response. Could you please explain why you believe that arbitrage is not possible for retail traders? While I understand that it can be challenging to execute arbitrage strategies manually, some traders may still attempt to do so. I would appreciate hearing more about your perspective on this.

Arbitrage is not possible for retail traders because the markets that we see and trade are different then the markets for brokers their markets differ from the markets used by Hedge Funds and small banks, different compared to the markets made by JP Morgan, UBS, Barclays Bank, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley… I assume we are talking about fx spot arbitrage. What kind of arbitrage are we looking for? In futures, spread markets, cross currency, swaps, other derivatives?

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@interestRateDifferential Not true… It all depends on what defines Arbitrage


(XAUUSD Daily Chart)

Using an estimated centre of the market or correct price (Arbitrage Level) we can use as far back as 2019 - 2020 to formulate a level that price action will return to continually… (Even during times of crisis!)

Using Gold as an example… If we calculated this back from the beginning of 2020 by blocking out the chart data forward of January 2021…

We simply measure the high and the Low of 2019 and calculate the price level in the centre (or 50% Fibonacci level) and we have a datum level at which to calculate when XAUUSD is expensive or when it is cheap…

*Note: I’m not a believer in Fib Levels but this technique does seem to apply more often than not!!

You can use a similar technique to find the correct price by back testing on all trading instruments…

BTW… This concept would still apply if you used 31st December 2021, 2022… It’s that Simple…


(XAUUSD Daily Chart)

Now with price data revealed all the way to the present day we can see if the XAUUSD was tradable by relying on our version of Arbitrage Strategy…

@interestRateDifferential Could LT traders have profited trading this strategy??

Concept displayed on a the 4 hour timeframe real time 12 months ago in another thread…

(See Here) (Here) annnnnd (Here)

It doesn’t get any easier than this people… Although many here will complicate it to the point of rendering this concept completely untradeable…

Enjoy…

  1. What is the market from your screenshot XAUUSD D1 ?
  2. There is no such a ting as correct price that you name Arbitrage level
  3. This is nonsense and nonsense is most complicated, because looking for something in the nothing is hardest job ever…
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Find somewhere else to play if you don’t know what market XAUUSD D1 is… Seriously!!

“Pure arbitrage is also possible in instances where foreign exchange rates lead to pricing discrepancies, however small. Arbitrage is a strategy in which an investor takes advantage of inefficiencies within the market…”

Notice how I have correct price in italic… It symbolises the level/Price which the instrument has historically and is most likely to return too. Read all the posts linked in my post…

(See Here) (Here) annnnnd (Here)

So you have a clue at what is being displayed.

Extend on what you discussed above… You’ve said nothing of substance so far…

XAUUSD is underlying the market is where you transact, the fees as commissions and/or spreads plus cost of carry and/or other unknown variables as slippage and a lot more related to the trading condition offered by your service provider and it’s trading instrument specifics.

So now i will ask you again what is the market that you trade AUDUSD?

Pure arbitrage exist, it is simply when there is pure arbitrage opportunities out of triangular or cross derivative markets, what you talk about and the screenshots attached is total non-sense unless you provide more details related to the trading activity/conditions/market…

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@interestRateDifferential That first paragraph is a quality attempt at baffling us with bullshite… It’s meaningless waffle

Didn’t you originally post Arbitrage is not possible for Retail traders… Pick a lane

Members here can take what they want from my posts above… Enough said…

@Trendswithbenefits
Didn’t you originally post Arbitrage is not possible for Retail traders… Pick a lane
Members here can take what they want from my posts above… Enough said…

Exist, but not for retail traders.

Would you explain the AUDUSD chart, provide more details please. Members as you might take it all from your post.

I haven’t posted the AUDUSD Chart… Stop trying to change the subject!!

Yes, XAUUSD it was, tell us more about these arbitrage opportunities, please.