Elevate Your Trading with SharpTrader™ Arbitrage
Video 1 – Video Presentation on SharpTrader Arbitrage Software
We are introducing SharpTrader™ Arbitrage Software – a powerful, professional trading terminal designed specifically for advanced arbitrage across diverse markets.
All common trading terminals and web platforms allow you to connect only to a single broker server. In SharpТrader, we introduce the concept of connection via a universal light version of FIX protocol (called EASYFIX) to bridges that work with different exchanges/brokers. Keeping connectors to exchange(broker) in separate bridge infrastructure is a prudent strategy that offers several advantages. A bridge, in this context, refers to the software responsible for connecting to cryptocurrency, financial exchanges, or broker servers. Here’s an explanation of why it’s better to maintain separate bridge(s) for different exchanges/brokers in different executables and not inside the main program that executes arbitrage and other trading strategies. Learn more about EasyFIX API.
From Forex and CFDs to Energies, Prestigious Metals, Futures, and Cryptocurrencies, SharpTrader™ Arbitrage gives traders unparalleled control and in-depth analysis capabilities.
SharpTrader™ Modules
Comprehensive Trading Session Overview
The trading session window in SharpTrader™ Arbitrage is designed to provide traders with an all-encompassing view of their accounts. From balance and equity to initial equity and equity gain, get the information you need at a glance.
In the Strategies section of the SharpTrader menu, you can add any strategy you’ve purchased. These strategies include presets for various types of brokers and prop firms.
Full Automation with Templates
Moreover, we’ve taken the automation a step further. SharpTrader™ Arbitrage allows you to set up your trading parameters using Templates automatically. Our beta version currently includes three distinct templates to cater to a variety of trading scenarios:
- Wide Spread: Ideal for forex brokers with wide spreads, this template simplifies your setup process. All you need to do is apply this template and adjust the lot size.
- Tight Spread: If you’re working with forex brokers offering narrow spreads, this template is for you. Like the Wide Spread template, apply it and tweak the lot size.
- Prop Firms: This template is designed to assist traders in configuring the program for prop company contests. It doesn’t just set up symbol-specific settings; it also establishes hard stop loss limits and equity counters, a vital requirement for almost every prop firm.
With SharpTrader™ Arbitrage, we strive to provide a seamless, automated, and optimized trading experience. Leverage our intuitive features to stay ahead in your trading game. AI Optimizer module
You can find a description of each strategy further down on this page under SharpTrader™ Pro Arbitrage: In-built Arbitrage Strategies Description.
In the Orders section of the SharpTrader menu, you can view information on open, rejected, and closed orders, as well as analyze each order in detail.
Unrivaled Order Analysis
Our platform empowers traders to scrutinize each order from inception, during an arbitrage situation, through closure. Additionally, it provides a comprehensive analysis of your trading account and strategy, allowing you to manage anything from a single account to multiple portfolios seamlessly. This rigorous analysis lets you fine-tune your strategy parameters, gain insights into broker behaviors, and discern potential market manipulation.
Want more detailed insights? Our platform also provides data on Average Slippage, Average execution time, and Ping. For the safety of your investments, we’ve integrated an Equity Manager feature that you can activate to protect your account from unexpected losses.
Embrace the future of trading with SharpTrader™ Arbitrage – where comprehensive control and advanced analysis combine to deliver a superior trading experience.
In the Analyses section of the SharpTrader menu, you can analyze ticks from various fast feeds and compare them, as well as analyze and compare ticks from slow brokers and the fast feed. This is essential for arbitrage and HFT trading.
SharpTrader allows you to create charts for all available instruments, apply built-in indicators to them, and trade not only using built-in automatic strategies but also manually.
Built-in Coding Module – Code your own Trading bots for SharpTrader™ Pro
SharpTrader’s integrated coding module empowers you to craft and manage custom trading bots. With a professional editor and C# programming, it’s versatile for use with nearly any forex broker or crypto exchange. This feature opens up opportunities to develop distinctive arbitrage and non-arbitrage strategies based on your personalized algorithms, enhancing your trading toolkit.
The built-in AI Optimization module enables you to leverage artificial intelligence for analyzing your strategy settings and trading results, optimizing configurations to automatically generate the best presets.
SharpTrader™ Pro Arbitrage: In-built Arbitrage Strategies Description
In-built Latency Arbitrage Strategy - This high-frequency trading approach exploits the latency discrepancy between slower and quicker brokers. It works by trading on slower brokers utilizing data updates (quote updates) from quicker brokers. The software identifies arbitrage opportunities (price differences between slow and quick brokers) and places orders on the slower broker, predicting a price shift in line with the quicker broker. For instance, if the EURUSD price on a slow broker is 1.34567 and 1.34540 on a quick broker, the software will sell EURUSD on the slow broker.
In-built Lock Arbitrage Strategy – This strategy enables the software to secure profits and finalize them by the minimum time or pips. The Lock Latency Arbitrage strategy facilitates the placement of two contrasting orders (buy and sell) on two separate accounts for each traded symbol. These could be two distinct brokers or two separate accounts with the same broker. When an arbitrage opportunity arises, the software opens and order on the symbol, applies a trailing stop to the corresponding virtual order, and initiates a new locking order on the opposite side when the Stop Loss or Take Profit is triggered. After that it closes both positions after Min time or Min pips condition is met.
In-built LockCL1 Strategy – This strategy, similar to the “Lock” strategy, enables the software to secure profits without closing on the same account. The subsequent action differs from the Lock algorithm; the software will not close the lock by minimum time or pips but will wait for the next arbitrage opportunity. On a buy arbitrage signal, the software will close the Sell order, open a “virtual” Buy order with applied Stop Loss, Trailing Stop, and profit. It will close the real Buy order when the conditions are met.
In-built LockCL2 Strategy – This strategy, like the “Lock” strategy, allows the software to secure profits without closing on the same account. The following action for the LockCL2 algorithm varies from the Lock Algorithm. When a buy arbitrage signal is received, the software will close the Sell order, open a “virtual” Sell order with applied Stop Loss, Trailing Stop, and take profit. It will reopen the real Sell order on the opposite account when the closing condition is met.
In-built LockCL3 Strategy – This arbitrage strategy is designed to arbitrage on one account while using another only for locking. It operates with Side 2 for arbitrage and Side 1 for locking, meaning there’s no arbitrage situation hunt on Side 1.
In-built Hedge Arbitrage Strategy - This high-frequency trading strategy capitalizes on the latency difference and quote difference among liquidity providers across two or more brokers. When the software detects a discrepancy, it opens a Buy order on the broker with the lower price and a Sell order with the same order size on the broker with the higher price, waiting for an opposite arbitrage situation to close the hedged position.
In-built Triangular Arbitrage Strategy - This type of arbitrage arises from a discrepancy between three foreign currencies, for instance, between EURUSD, GBPUSD, and EURGBP, which happens when the currency's exchange rates don't precisely align.
In-built Statistical Arbitrage Strategy - This strategy relies on the historically strong correlation between two financial instruments, for example, WTI and Brent, DE30 and F40, Amazon and Apple. Users can set a period for correlation determination, timeframe, and strong correlation level. The software sells strong and buys weak instruments when their correlation diverges beyond a certain level. Once mean reversion occurs, the locked position created by the two orders: buy and sell, should generally be in profit. This strategy is also known as convergence or pairs trading.
In-built Pairs Trading strategy is a market-neutral strategy that involves simultaneously buying one asset and selling a correlated asset. By capitalizing on the price divergence between two correlated securities, this strategy aims to profit from their eventual convergence. It reduces market risk and leverages statistical analysis to identify trading opportunities, making it a reliable choice for consistent returns in various market conditions.
TrendPulse is a dynamic trading strategy designed to capitalize on market impulses and subsequent movements. By analyzing sharp market movements and identifying the resulting trends, TrendPulse pinpoints optimal entry and exit points for trades. This strategy aims to maximize profits by leveraging the initial impulse and riding the trend that follows, making it ideal for traders looking to exploit market volatility and momentum.
BrightTrio Built-in arbitrage strategy, designed to optimize arbitrage trading across three accounts (A, B, and C) while maintaining maximum trade masking capabilities. With two options available, you can initiate the strategy either before or during arbitrage situations.
Option 1:
At the start of the strategy, with prices aligned on the fast feeder and accounts A, B, C, a BUY order is placed on account 1, and a SELL order is placed on account 2.
Option 2:
When the strategy begins, no initial openings occur as the prices remain consistent across the fast feeder and accounts A, B, C.
Now, let's consider a BUY arbitrage situation: the fast feed price exceeds the prices on the slower accounts (A, B, C) by the specified difference to open (configurable in the program settings). In response, the program opens a BUY order on account A and applies Stop Loss (SL), Take Profit (TP), and Trailing Stop. If the trailing stop or TP is triggered, instead of closing the BUY order, a SELL order is opened on account B, securing the maximum fixed profit and locking the BUY order.
Whether option 1 or option 2 is chosen, the program executes these actions consistently. In a BUY arbitrage situation, where the fast feed price surpasses the slower accounts (A, B, C) by the specified difference to open, the program closes the SELL order on account B. Simultaneously, a virtual BUY order is created at the closing price of the SELL order, implementing SL, TP, and Trailing Stop. It's important to note that this virtual order exists only in the program's memory and is not transmitted to the broker server. When the trailing stop or TP is triggered, the program opens a SELL order on account C, effectively capturing profits and locking the BUY order.
Similarly, in a SELL arbitrage situation where the fast feed price falls below the slower accounts (A, B, C) by the specified difference to open, the program closes the BUY order on account A. Concurrently, a virtual SELL order is generated at the closing price of the BUY order, accompanied by SL, TP, and Trailing Stop. Upon triggering the trailing stop or TP, the program initiates a BUY order on account B, securing profits and locking the SELL order.
By adhering to these procedures, the strategy ensures several conditions are met, effectively masking arbitrage trades:
- Each account maintains either a BUY or SELL open trade instrument.
- The order's lifespan can be indefinitely extended, customizable within the program.
- The pause duration between orders for a single trading instrument is determined by program settings.
- The minimum profit value (Min profit) is configurable within the program.
This comprehensive approach prevents the detection of multiple indicators of arbitrage trading during account analysis, such as short-term orders, multi-pip orders, locking profits in several pips contrary to the direction of the order, or frequent orders during periods of high market volatility. Elevate your trading efficiency with the powerful BrightTrio SharpTrader™ Built-in strategy today.