DAAS with built-in strategies Wednesday August 18th, 2021 – Posted in: Arbitrage Software, cryptoarbitrage software

Using arbitrage programs, a trader not only gets a high profit but also improves the effectiveness of currency markets or cryptocurrencies. As a result of arbitration, the price difference between identical or competing currencies used in statistical arbitrage involving currencies or cryptocurrencies, decreases. That is, the price rises on instruments with lower prices and decreases on instruments with higher prices. Such equalization or stabilization of the price is useful for the market, but it damages not honest market participants such as B-Book brokers and liquidity providers because arbitrators profit for which they have to pay a B-Book broker to the acting counterparty in transactions that do not enter the real market. For this reason, brokers are most afraid of arbitrators and all sorts of attempts to harm them and hence increase the time of execution of the order and naturally the slippage*.

In some cases, most often when trading fok or ioc limit* orders in FIX API accounts, plugins are used instead of slippage. These are sent in response to reject the order request and the broker easily explains to the trader that the requested price has changed and for this reason, the order has not been executed. Therefore, experienced traders disguise the arbitrage trade trying to convince the broker that they are new and have no trading experience. Such clients are happy to “help” the broker, providing the best terms of trade namely lead time and receive zero slippage. The methods of persuasion by the trader can be different from the disorderly opening and closing of orders, with the aim of losing part of the deposit and then in a short time to earn several times more than was lost using arbitrage. Some traders are constantly in contact with the support, asking many irrelevant questions and probing when the brokerage is unavailable i.e. dealers are at home. This is possible among beginner brokers who do not have the ability to monitor trades 24/5.

It can also help to use several strategies on one account to disguise arbitrage deals as some t plug-ins in a small percentage of deals opening during arbitrage situations. So, if you want to prepare your account for trade the best-suited software for you would be DAAS with the L-Pouring built-in strategy. This strategy will allow you to transfer a part of the deposit from account 1 to account 2 in a few days, thereby imitating a losing trade on account 1, which can be used for further arbitrage. Further, to mask arbitrage on currencies it is best to use DAAS with the triangular built-in strategy, while to mask arbitrage on CFDs, metals, and oil It is best to use DAAS with statistical arbitrage built-in strategy. Once you have chosen a strategy or both strategies for masking, you need to choose the arbitrage program itself. If you have the ability to open 2a accounts with this broker in different names, the strategy best-suited for you would be DAAS with LockCL2 to LockCL built-in strategies. If not, you can use DAAS with LockCL3. Lockcl3 trades using arbitrage on one account and uses the second only to hedge trades. This can be a broker’s account with good execution in the same data center as the account for arbitrage trading.

While trading while using arbitrage, you have to cope with the idea that you will have to change your broker from time to time and if you are very “attached” to your broker then ask yourself the question: How much I earned trading with my broker?” Then, answer this question truthfully. If this answer is “I have earned a lot”, then most likely you do not need any arbitrage strategies because as you are a professional and enter into the elite number of traders, the top 2-3%.  If your answer is I have had nothing but losses and you do not want to change the broker then you are trying to play in a casino that will destroy your psyche. Trading in Forex is not a game, in fact, it is extremely difficult. Opening a new account is not really the easiest but the remuneration from the utilization or arbitrage trading will exceed all of your expectations. On the topic of expectations, we are often approached by traders who have fallen victim to unfair advertising and want to earn 1000% on their investment. Let’s be realistic. The real goal is 40% per month. Yes, latency arbitrage can bring 100% per day, but with a high probability that you will expend a lot of effort trying to reach this number. It is best to follow the popular saying: “slow and steady wins the race”.

 

Slippage of an order –   execution of the order at a price different from the price you specified when you set the order. For example, a trader sent an order to be executed at 1.3450, but this order is executed at 1.3455. In this case, slippage is equal to 5 points. If it is a buy order then the slippage is called negative and if sell then Positive.

IOC Order –  IOC order will be immediately executed in whole or in part at the declared (or best) price, and the part that cannot be immediately executed will be canceled. If the order cannot be immediately executed in full or partially, it will be canceled.

FOK order – FOK orders must be executed immediately in full at the stated (or best) price or cancelled, i.e. partial execution is not allowed.