{"id":7542,"date":"2023-10-06T15:14:43","date_gmt":"2023-10-06T15:14:43","guid":{"rendered":"https:\/\/bjftradinggroup.com\/?p=7542"},"modified":"2026-06-17T18:44:12","modified_gmt":"2026-06-17T18:44:12","slug":"navigating-prop-firm-challenges-with-sharptraders-lockcl2-latency-arbitrage-strategy","status":"publish","type":"post","link":"https:\/\/bjftradinggroup.com\/hi\/navigating-prop-firm-challenges-with-sharptraders-lockcl2-latency-arbitrage-strategy\/","title":{"rendered":"Navigating Prop Firm Challenges with SharpTrader’s LockCL2 Latency Arbitrage Strategy"},"content":{"rendered":"

The journey of becoming a funded trader in a proprietary trading firm, often referred to as a ‘prop firm,’ can be both exhilarating and demanding. Many prop firms set a challenge for prospective traders, essentially a litmus test to gauge a trader’s proficiency. The crux lies in showcasing your trading skills and using the right tools to amplify your potential. Enter SharpTrader with its built-in LockCL2 Latency Arbitrage Strategy<\/a>. Here’s how it can be your secret weapon.<\/p>\n

Understanding the Landscape<\/strong><\/h3>\n

Before diving into the strategy, it’s imperative to comprehend what prop firms are looking for. They want consistency, risk management, and profitability. The challenge typically involves growing a demo account within specified parameters without crossing risk thresholds.<\/p>\n

The Power of Latency Arbitrage<\/strong><\/h3>\n

At its core, Latency arbitrage is a strategy that capitalizes on price discrepancies in the same currency pair between two brokers. It’s about leveraging the slight differences in price feeds, often resulting from lags or delays in one broker compared to another (fast feed).<\/p>\n

Why SharpTrader’s LockCL2 Strategy?<\/strong><\/h3>\n

SharpTrader, a state-of-the-art trading platform, houses the LockCL2 – a built-in latency arbitrage strategy. But what makes it a game-changer?<\/p>\n

Precision and Speed:<\/strong> In arbitrage, milliseconds matter. SharpTrader, with its refined algorithms, ensures that the trades are executed with utmost precision and minimal latency.<\/p>\n

Camouflaging Mechanism:<\/strong> Prop firms are often skeptical about arbitrage strategies, deeming them as ‘unfair advantages.’ The LockCL2 strategy incorporates mechanisms that camouflage the arbitrage trade as a standard trade, making it harder for firms to distinguish.<\/p>\n

Risk Management:<\/strong> With customizable settings, traders can define their risk parameters in alignment with the prop firm’s conditions, ensuring the account stays within challenge requirements.<\/p>\n

Merging with Other Strategies<\/strong><\/p>\n

While LockCL2 is powerful, combining it with other camouflaging strategies available in SharpTrader amplifies its effectiveness. This multi-pronged approach increases the chances of consistent returns while adhering to the prop firm’s guidelines.<\/p>\n

Continuous Monitoring and Adaptation<\/strong><\/h3>\n

Markets are dynamic, and so should be your strategies. Continuously monitor the performance, adjust settings as needed, and ensure you align with the challenge’s parameters. SharpTrader provides real-time analytics, making this task more straightforward and more efficient.<\/p>\n

How to pass prop firm challenge with SharpTrader Arbitrage \u2013 step-by-step guide<\/strong><\/h2>\n

Preparing for the Challenge<\/strong><\/h3>\n

Before taking the plunge, use SharpTrader in a demo environment. Please familiarize yourself with its functionalities, refine your strategy, and face the prop firm challenge once confident.<\/p>\n

Install SharpTrader and add your prop firm account in the \u201cSessions “section. Then open the strategies section and press the \u201cAdd strategy\u201d button. From the drop-down list, select LockCL2\u201d latency arbitrage strategy.<\/p>\n

\"How<\/p>\n

Pic. 1<\/strong> –Select LockCL2 built-in latency arbitrage strategy.<\/em><\/p>\n

Then check \u201cSingle session.\u201d<\/p>\n

\"Select<\/p>\n

Pic. 2<\/strong> –Check the \u201cSingle session.\u201d<\/em><\/p>\n

The following window will appear. Press \u201cYes\u201d button here.<\/p>\n

\"Create<\/p>\n

Pic. 3<\/strong> –Create a symbol list from the template.<\/em><\/p>\n

Selected \u201cProp firms\u201d preset template by double clicking on it and SharpTrader will automatically create setup for passing prop firms challenge.<\/p>\n

\"Select<\/p>\n

Pic. 4<\/strong> –Double-click on the \u201cProp firms\u201d preset template.<\/em><\/p>\n

It will appear in the LockCL2 Settings tab with preset parameters for prop firm arbitrage<\/a>. In the \u201cFast quotes session\u201d menu you need to select fast feed in the same location with your prop firm broker\u2019s server and your VPS. Choose your prop firm’s account in the \u201cSlow session 1\u201d selector.<\/p>\n

Offset recalculation \u2013 keep the default parameters.<\/p>\n

Open\/close parameters \u2013 keep the default parameters.<\/p>\n

Trading options<\/strong><\/p>\n

Time to start trade and time to stop trade – these parameters are important only for CFDs\/Indices trading, as every CFD\/Index is traded at a particular trade session. US100 index is traded during American session, so you need to set up the time to close and open the order based on the time zone and the system won’t open orders when session is closed. For the parameters local VPS time is used. Please be sure that you set the EST time zone for your VPS.<\/p>\n

Trade pause<\/strong>\u00a0\u2013\u00a0 pause between opening arbitrage orders on a certain instrument.<\/p>\n

Min. order lifetime<\/strong>\u00a0\u2013 allows to set minimal arbitrage deal duration.<\/p>\n

Hard S\/L factor<\/strong>\u00a0\u2013 allows to set visible to broker SL (by default it is hidden). Visible SL is calculated as SL value in Instruments and orders table*Hard S\/L factor value. For instance, if S\/L<\/p>\n

is set to 30 points and the Hard S\/L factor is set to 20 points, a visible stop will be set to 30*20=600 points.<\/p>\n

Why is this parameter essential? Because most prop firms have requirements for a fixed SL for trades.<\/strong><\/p>\n

\"LockCL2<\/p>\n

Pic. 5<\/strong> –SharpTrader- \u201cSettings\u201d tab for prop firms\u2019 challenges.<\/em><\/p>\n

Automatically close all locks \u2013 SharpTrader will close all locks 30 minutes before the New York session ends on Wednesday when most brokers have triple SWAP.\u00a0 For indexes Triple swap is charged on Friday so if you trade indexes we recommend to activated auto-close also for Friday.<\/p>\n

Pauses \u2013 these pauses help to mask latency arbitrage strategy \u2013 LockCL2.<\/p>\n

Random lots.<\/p>\n

We recommend using this option because it also helps to mask latency arbitrage activity. You can set min lot (from), Max lot (to), and step. For example, if you set:<\/p>\n