Arbitrage - MetaTrader 4 Expert | Martin EA Download - MT4/MT5 Resources - MetaTrader 5 Resources

Necessary arbitrage requires no explanation. In this case, a similar strategy was proposed. The difference is that in true arbitrage, a trade is only made when there is a profitable price difference between the commodity and the contract being traded. In this case, the difference is based solely on the exchange of contracts.

The idea behind this strategy is simple. That is:

This leads to a classic counter-trend strategy with all the consequences that come with it. The only consequence is that when trading a single currency pair using this strategy, profits can be made from rollbacks or trend reversals, as well as from all sideways and ranges. The rest of the time, i.e. during trends, there is nothing but net loss.

The following is a typical example of testing such a strategy:

As they say, one can only dream of such trading system parameters. That is, of course, if the equity doesn't attract attention. And this equity was in margin call status at their lowest. However, if the trader issues a margin call, then in this particular case the EA will be able to use the funds remaining in the deposit to withdraw the balance to the level shown on the chart. This has been verified. This means that, on a demo account, the EA successfully received a margin call and successfully exited on the next trend reversal and transferred the balance to profit. That is, unlike inefficient trading strategies such as the Martingale method, this strategy can last until the end. If your account has insufficient equity, you can still borrow and invest in the strategy. Sooner or later it will repay all its debts with interest. When using Martingale, profits increase linearly, but losses increase exponentially, so even a short series of losses does not allow for winning. In this trading strategy, both profits and losses are close to linear, which is why this strategy can withstand quite a long "black" Tuesday, patiently waiting for the bad days to pass until good luck smiles on it.

There are many ways to protect against a sharp drop in equity, namely placing multiple EAs on different trading symbols. In this case, diversification can smooth the reduction in equity. The second method available in the EA is group multi-trading of multiple symbols using reverse quotes. In this case, if one symbol has an uptrend and another symbol has a downtrend, the EA in the uptrend will sell and the EA in the downtrend will buy. This feature is true arbitrage - when one species is bought cheaply and another species sold at a high price, the result of this speculation will not be reflected in the balance, but in the net value, which is the most important. After a reversal or rollback, the balance will be restored.

The inverse rate does not have to be in the currency of the deposit. They can be any currency, as long as all symbols have the same first currency. For example:

Another important note: all matching groups should have the same size contract. In most cases, trading centers set a lot size of 100,000 units. If the contract size of any currency pair is different from the contract size of other currency pairs in the group, then the currency pair cannot be included in the group.

How to configure. Each EA has only three non-optimizable (no optimization required) parameters:

All parameters of each EA are set once before launch and do not change during automated trading - constant values. The current price when the EA is placed is not the current price at any other time. It is the initial price that determines the direction of quotes before the first contract on the instrument is opened. For the second contract, the initial price will be the opening price of the first contract. For the third - the second and so on.

Test quality is not important because the EA:

But if anyone's got an itch, feel free to download the history of M1 into the Strategy Tester from the Stone Age.

Attachment download

📎ArbitrageReverse_1_1.mq4 (6.78 KB)

Source: MQL5 #7087