Elevate Your Trading with SharpTrader™ Arbitrage
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 – Latency Arbitrage Monitoring
SharpTrader LockCL2 Arbitrage Monitoring
Account 1 + Account 2
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.
Automated Strategy Testing and Optimization
Looking ahead, SharpTrader™ is gearing up to offer automated testing and strategy optimization capabilities. Leverage our built-in programming language and comprehensive set of indicators to devise, test, and optimize your arbitrage and non-arbitrage strategies. These functionalities pave the way for effective trading on both demo and real accounts.
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.
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.
Streamlined Crypto Exchange Symbol Designations and Automated Settings
Navigating the varying symbol designations across different crypto exchanges can pose significant challenges when setting up crypto arbitrage. At SharpTrader™ Arbitrage, we’re delighted to announce that we’ve solved this puzzle. Our platform enables users to choose a crypto exchange name from a list, and the program will automatically load a list of symbols available for trading on the preferred exchange. For instance, if you select Bybit USDT Perpetual, our platform will readily provide you with a list of all available symbols for that exchange.
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.
SharpTrader™ 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 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 closes the opened 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.
- In-built LockCL 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 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 when the close 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.
- 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.
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.
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.