Methods of risk control in trading

Money management in the financial market plays an important role in shaping the future profitability of the fix api trading. Each exchange speculator should be aimed at keeping risks at a fixed level and try not to reach them. But nevertheless, they always present in trading and in the financial market only the fix api forex broker can earn stable and risk-free profit. We also need to manage our risks to ensure the safety of our funds and multiply them.

Methods of risk control in trading:

  1. Transaction risk: it is necessary to limit the losses in a particular trading operation, in order to understand how much will we lose in the event of incorrect forecast even before opening the position. This parameter also helps you to determine the volume of the position based on the risk. For this, there are auxiliary programs or calculators that display the volume of the deal in lots for fix api MT4.
  2. The risk for a certain time interval: I also recommend to set the maximum risk for a certain period of time. So, if you have reached maximum weekly losses, it is best to suspend trading, take a break and try again on Monday.
  3. Trailing stop: this option will allow you to improve the indicator more than once, based on the fact that it will always fix the guaranteed interest, which will allow you to leave the market even with a minimum profit in case of a sharp price turn.

These parameters are not new and unique, but they are able to take control of your risks and I recommend starting to apply them in your trading today!


High-frequency approach in trading

Fix api Latency Arbitrage is a high-frequency approach in trading, which consists in opening trading positions based on the exchange rate delays. This approach is implemented through trade both in the faster and in the slower broker. Thus, the trading robot conducts a constant analysis of price quotes and, in case of maximum delays, it commits a trading operation on the side of the slower broker towards the faster one. The logic of the automatic trading strategy consists in an implemented parameter, which is analyzed in an online mode. As soon as the price quotes for the same currency pair reach a certain (given) value in points, the robot will open the deal and close it after reaching the price marks that were for the asset on the side of the faster broker at the time of opening the transaction.

However, this simplicity of the algorithm has its hidden pitfalls, of which not every fix api trader knows:

  1. Most brokers prohibit the arbitrage principle of trading, so if the broker determines your trading style, he may not pay you the profit from the trading positions.
  2. Continuing the first point, the broker can easily identify this algorithm, because it also contains algorithms that automatically monitor such operations.
  3. Since all the operations on the transactions were carried out on the side of the slower broker, it is possible that the trader will go to a company that operates by the “kitchen” scheme. Therefore, he can lose not only his profit, but his capital as well.

Profitable Method Of News Based Trading

There are many different methods of trading in the financial market that can take profits even with the smallest price movements. There are also approaches that, on the contrary, are based on the fix api trading at the time of the most volatile phase of the market. This method of trading is the opening of trading positions when publishing important statistics that have the greatest impact on the price quotes. In the market, this type of trade is called news based trading.

News based trading is carried out for the purpose of quick earnings, because when new data enters the market, the exchange speculators rebuild their forecasts and open new trading positions that instantly cause increased volatility. Imagine a market boom when a lot of players compete for the same product. The same thing happens with the quotes of the financial asset in the fix api forex market. This is an excellent opportunity for a professional trader to earn at the moment, because the price for a short period of time can go up to 100 points.

For example, if the Central Bank changes its monetary policy and raises the interest rate, this indicates a toughening of the conditions. Thus, the supply of currency decreases, and the demand remains at the same level, which causes an increase in the asset value. For example, the decision to change the rate of the FED was marked by strengthening of the dollar compared to the US dollar by 80 points. This is an excellent yield potential for the trader. If he opened one lot at the fix api MT4 trading terminal ( ), he could earn approximately $800 in an hour (with a leverage of 1:100).

However, the scenario given above is very rare. Especially, if you conduct a chaotic fix api trading and do not have a special approach, because even in this trading method there is an algorithm of actions, about which I am going to tell you today.

Profitable method of news based trading

In order to conduct trading based on the news, each trader must be prepared for trading on this algorithm.

  1. Initially, you need to determine the news on which you plan to trade and see its dynamics on history. If this news does not cause more than 20 points of movement for a currency pair, then such a game is not worth the candle. If the expected indicator regularly shows 50-100 points of movement, then certainly it is worth choosing it for your trade.
  2. The second stage is to establish two pending orders: buy stop and sell stop. These two pending orders must be accompanied until the opening of the trading position. However, it is necessary to ensure that the transaction does not open on the basis of spread expansion or price noise on the threshold of data publication.
  3. After the news comes out, the quotes with a high probability will break one of the pending orders and you will have an open position for one “delay.” An order that is not open must be removed in order not to get into the lock.
  4. The open position is connected with further actions. It is your decision when to close a position. However, I would advise you to transfer almost immediately the transaction to the breakeven zone (to set a stop loss at the opening level) and include a trailing stop.

As you can see, this algorithm does not guarantee the fixation of absolutely all traffic after the news, but it allows you to fix a huge percentage of profitability in a single transaction and in the shortest time period. Moreover, the news based trading fits perfectly into the more standard trading systems for working in the fix api forex market and can be combined with other manual algorithms and automatic systems. Therefore, I recommend the fans of speculative trading and quick earnings to test the algorithm described above and which can be implemented in the form of a speculative trading robot ( ).


Trade with the help of automatic programs

The trading result directly depends on the methods of trading. If the exchange speculator does not have a tool for analysis that allows him to predict the future value of the asset, then there will be no positive financial result. I consider it a senseless waste of money to start trading in real funds without tool of analysis. This is a key mistake of the novices in the market, because almost everyone comes here for quick money and concludes chaotic transactions that only contribute to a fund loss. Therefore, to make the trading process profitable and able to demonstrate a positive result, each fix api trader must trade according to the trading system.

Everyone can find a ready-made description of trading systems on the Internet and start his acquaintance with the market with them. I advise you to initially try virtual means that you can get in the fix api MT4 trading terminal, and supplement the ready methods with his analysis forming an individual trading approach, because each trader is unique and not every trading system is suitable for all. Only after the first positive test results of this method, you can think about opening a trading account in the fix api forex broker.

There is also an alternative scenario – to use automatic trading programs in the form of robots ( ), which will make transactions without the trader’s direct participation. With this approach, you cannot think about creating a trading strategy and spend time studying market patterns, because it will all be included in the robot, and the beginning speculator will turn into a full-fledged investor. Thus, a passive percentage of profit from trading in the fix api forex market is formed.

Undoubtedly, before you connect the program to a trading account, you need to test it on historical data, as well as pay attention to the statistical indicators. Only if the program already demonstrates profits on the existing trading accounts and its indicators do not cause increased risks, you can trust your capital to it. In other cases, I do not advise it.

If you have chosen a working algorithm, the trade with the help of automatic systems has a number of advantages:

  1. It allows you to save time on finding investment opportunities;
  2. It conducts permanent trade in the foreign exchange market (around the clock five days a week), which allows you not to miss the advantageous entry points;
  3. It controls risks, because the program sets a maximum loss parameter and risk and money management parameters are not violated;
  4. It controls the emotional background, as the robot works based on a specified algorithm and short-term losses will not affect its analysis of the transaction and financial assets;
  5. It allows formation of a highly profitable source of passive profit.

This is not a complete list of automatic programs and depends on each particular robot. However, this is the main basis, on which the manual trading of the novice speculators does not work, and the use of robots solves this problem. Moreover, the use of automatic algorithms can go in combination with manual trading and become a means to withhold the trading account from losses.

If you have your own system and conduct profitable trading, I still advise you to diversify it using an automatic approach. In this scenario, it is best to use another account in order that the logic of the trading robot in the fix api forex market is different from your system. This can be a completely different strategy or a more speculative algorithm, for example scalping or arbitration ( ). Therefore, automatic trading is suitable for both beginners and professional players on the financial market.


Pair arbitration: what is it?

The financial market attracts more and more traders to their networks with the illusion of quick money simplicity. However, those who are familiar with the market, have long understood that this is not so. Everyone who has started and continues to work on the fix api forex, brought something new to this market. Some created their own authorial approaches in the form of a trading strategy. Others have authored technical indicators, and others have trading robots. Today, this abundance of auxiliary elements of analysis makes it possible to form a huge knowledge base and useful content for the future generation. However, do not forget about the traditional tools that have long been alien to this market. And I’m talking about such an approach in the trading as the fix api arbitrage.

Arbitrage trading is based on the opening of trading positions on the same financial asset, but on different stock exchanges. At one time, when computers were just beginning to appear in this segment, this approach was widely used on different stock exchanges, when on one exchange the price of an identical asset could differ and the fix api trader had the opportunity to buy at a lower price and sell at a higher ( ).

For a long time, this approach was not available for the foreign exchange market due to the specificity of its robots, because this market is inherently a single exchange platform. Therefore, arbitration here was not applied. But everything changed drastically after the forex market began to actively use special auxiliary programs for the fix api trading ( ).

The brokerage companies have contributed a great support for this, as they set significant markups on the currency pairs. These mark-ups cause a gap in the exchange rates and an opportunity to open arbitrage transactions.

Pair arbitration is precisely in the classic work on this trading strategy. For example, when the value of the EURUSD currency pair in one broker is 1.1250, and the second one reaches 1.1258, the trading robot receives a signal to the beginning of the action. To do this, you need to specify the normative discrepancy between different brokers (let’s say this difference is 3 points in our example), as well as the maximum discrepancy at which it is necessary to open positions (let this parameter amount to just 8 points). Thus, the robot will open two trading positions: a purchase in the broker, where the quotes are 1.1250, and also the sale on the platform where the quotes are 1.1258. After that, when the two pairs of transactions after a prolonged breakdown return to the regulatory range, the trading robot will close both positions simultaneously. Continuing our example, let’s consider that the closing prices will be 1.1267 and 1.1270 respectively. Thus, the first transaction will close with a yield of 17 points, and the second one with a loss of 12 points. The financial result for these polices is 5 points of profit, which was formed absolutely without any risk.

Some exchange speculators have developed this direction and a few more fix api arbitration algorithms have been created, the boiler has an identical idea, but completely different logic of operation (fix api Latency Arbitrage and fix api Lock Arbitrage). I think we will discuss the other options for the work of arbitration techniques in next articles.

This approach is used with the help of special algorithms, because a trader cannot keep a track of such micro-oscillations, especially on different brokerage trading accounts. Therefore, I advise you to use this algorithm in your trading, because it is able to get perfectly combined with other trading strategies and the fix api trading can be conducted without changing the risks.


Arbitrage operations in the foreign exchange market

The number of trading operations over the past few years has rapidly grown. This phenomenon is caused not only by the increase in the number of new players on the market, but also by the current feature of the fix api forex market. As you know, when there is demand, you need to make an offer. The brokerage companies perfectly cope with this function, and the currency brokers prevail in number today.

High market volatility provokes the search for more and more methods of currency pair analysis. Given the fact of the technical environment we live, the automation of fix api trading processes has reached the market segment as well. So, there are HFT algorithms and trading robots in the market that are able to conduct analysis and perform trading operations without the direct involvement of the trader. Also, the methods of trade that were previously impossible to apply in this market were widely used. One such method is the fix api arbitration approach, which got a second breath by automation of this process.

Arbitrage trading is a kind of trading system that is based on a speculative algorithm, opening trading transactions at the time of the largest exchange rate discrepancies in price quotations for the same financial asset, but on various exchange platforms. Thus, this type of trading analyzes not the movement of the price or predicts its future marks, but compares it with the identical value of the price at another broker. A trading operation is carried out if this discrepancy exists. It is necessary to consider each of its forms to understand the logic of this system.

Today, the market has implemented three main types of arbitrage transactions for the currency market:

  1. Fix api 2-leg Arbitrage. The logic of this principle is the most common in traditional markets ( ). According to this principle, the trading robot analyzes the value of the same financial asset, but on different stock exchanges (thus, fix api forex brokers). When the exchange rate discrepancy returns to the regulatory range, the two transactions are closed and the total positive result is fixed ( ). The peculiarity of this principle is that transactions can be held for a long time, which reduces the possibility of the broker’s influence on the trading result.
  2. Fix api Latency Arbitrage. This type of trading is very similar to the previous one based on the logic of its work: analysis is carried out between the same financial asset, however, the trading is performed only at one of the brokers. To do this, the fix api trader should analyze and determine which broker is faster in terms of quotes, and which one is slower. Transactions should be made on the slow side in the direction to the faster one, based on the temporary exchange rate delays.
  3. Triangle Arbitrage. This principle of operation is based on opening several trading operations on the fix api forex market. Such an algorithm uses imports by large companies (banks and hedge funds). The logic of the algorithm is based on the exchange rate divergence of three currency pairs simultaneously. Arbitration is transformed into a form of mediation. The trading algorithm analyzes the situation on the market and opens deals to ensure two market orders. Thus, when the market has an application for the purchase of EURUSD, and the second one holds the EURJPY position and at the same time expects the necessary entry point, this arbitration algorithm provides the first transaction, then converts it into USDJPY and provides the second transaction. To implement this principle, there must be some “gap” in the cost, which will ensure the profitability of the trading operation.

Today, these trading approaches can be used with the help of special auxiliary programs ( ). Arbitrage is a trader’s tool that allows him to form a passive source of profitability in the fix api forex market. Moreover, arbitrage can be perfectly combined with other trading systems of the trader due to its unique approach, which increases the diversification of investment capital and overall profitability.

How to optimally choose the parameters of money management?

Trade in the financial market requires maximum control and a systematic approach. Without observing certain rules (fix api trader should be guided by his own trading system), the result will be negative and lead to a loss of investment capital. Namely because of the absence of a system, many traders take an inefficient approach of trading.

However, the presence of a system alone does not give a result. The trading algorithm must be honed and improved in order to achieve a stable result. But this is only 20% of the success. The remaining 40% depends directly on the trader, his emotional stability from working with money, as well as psychological factors such as greed, fear, desire to win back and so on. The last 40% depend on the trading risk control. Even if the system is unprofitable and the trader lends himself to the psychological factor, but there will be a stable capital management, the loss of investment funds will not be sudden. Moreover, sometimes introducing a competent structure of risk distributions helps to improve the performance of the system and enter a positive profitability zone.

That is why every trader must develop and implement rules for managing capital in his trading on the fix api forex market. Of course, it all depends on the trading strategy and parameters that determine the entry and exit from the position.

If you nevertheless decided to control the risks in your fix api trading, then you should implement these optimal parameters:

  1. Determine the risk for the entire deposit. The trader should be aware of the maximum risks even before the commerce. Thus, in the system’s rules he should write down the key maximum value, upon which you should stop trading.
  2. Determine the maximum risk in the context of each trading operation. Similarly, like the parameter above, the trader should understand what will be the maximum percentage of loss in one trade operation. It is optimal to choose a parameter that would help keep all positions to maximum risk. For example, if your TS has a maximum loss risk of 20%, the risk to deal should not be more than 0.25%. Thus, you can wait 80 unprofitable transactions in a row.
  3. It is necessary to determine the volume of the trading operation based on the risk, or a fixed lot in the fix api MT4. If you set the maximum risk parameter in the transaction, then it is more logical to choose the option of automatic lot determination for opening positions. Fixed lot will solve the problem of large volumes, but not the risks, because the system should determine the exit from a position under certain conditions. If you make a fixed lot, the loss in the transaction will always be different. But it will also restrain the yield in case of a correct forecast. Therefore, I recommend determining the volume based on the risk, as well as the distance to the stop loss level

( ). The formula is quite simple: the distance in points to SL is initially determined, after which the cost of the item is calculated and this value is calculated from the capital. The result will be the required volume.

To sum it up, I want to note the fact that each trader must develop his own rules for capital management. If you have not realized this yet, you will come to this soon. Running the parameters of money management allows each trader to create an algorithmic approach in the future, because the robot is a program that needs to set the circumstances and parameters when it is worth to close the position ( ). And the robot should initially know and calculate the risks. Therefore, creation of quality parameters for money management will allow to improve the trading result in the moment and automatize the fix api trading in the future.

My own experience and insights in using forex trading robots

Most of those, who are trading on Forex market, have probably faced the so-called “missed deals” issue. If you are reading this article, it is likely that you have also suffered from it. I want to share my experience and an insight that helped me to dramatically increase profitability.

It is worth mentioning that I started trading on Forex with a tremendous wish to become “the great trader” and fully correspond to the image, which is imposed by television. However, the lack of financial resources and low level of the market development prevented me from achieving this goal. After a while, I finally designated a set of optimal conditions that fully satisfied my needs using my own experience in working with several trading brokers. However, even my deep knowledge, gained from the dozens of books did not bring me closer to the desired results. It took me at least half of a year to create a full-fledged profitable trading system.

I’ve got a powerful insight that I need not intervene into the working algorithm, but expand trading options in order to gain higher profit. Forex market is a unique platform, which works 7 days a week. However, I used only one third of its potential, as I traded only in the European session. It means that I traded 8 hours instead of 24 hours.

So, after familiarizing with the market for a while I upgraded my knowledge, but not the level of profit. Eventually, I decided to buy a forex robot in order to improve the performance.

It is not an easy task to choose a forex robot. There are paid and free versions of robots, which correspond various needs and strategies, both simple and complicated. The first lesson I learned on a forex market was that I have to invest in quality software in favor of my own deposit.

I started to check the review websites, which specialize on trading robots. You need a forex robot that would consist of the hundreds of algorithms for trading based on the setting parameters. So, spend some time wandering around the web to find some proper reviews on robots from traders.

Here is a list of helpful advice:

1. Read the reviews to understand the robot productivity and check the current clients’ results.

2. Find out how fast a particular robot can be optimized to your needs and keep in mind that the trading market is constantly changing. So, make sure you would be able to promptly adapt your robot to the actual market conditions.

3. Monitor the new robot models that appear on the market and compare their performance. Robots developing companies are constantly trying to develop more complicated systems and adaptive models. They want to provide the trader with the most successful tools.

It was a long and hard way of learning and mastering my trading skills before I found out that investing in software is the best way to avoid mistakes and problems in future. I have even lost my first deposit but still continued to study the trading market for 18 months. After that, I bought a couple of trading robots, tested them and picked the best one. Find out more about the automatic trading here:

How to test a forex robot?

Today I would like to tell you how to test a forex robot, relying on the historical data and MetaTrader 4 software. First of all, you need to install the forex robot into the MT4 terminal. Then, set the number of bars in the history of quotes, which is based on the top “Service” menu and at a “Quotes Archive” sub category. After that choose a “Graphs” bar and enter a 100 000 000 number into the “Maximum set of bars in the history” and “Maximum set of bars on a page”. Press an OK button.

To get the quotes on the needed currency pair and test them you need to open a “Service” tab with a history of quotes or hit F2. Then choose a necessary pair with M1 time frame and press “Download” button. After a while the quotes would be downloaded, so you should restart your terminal. After that enter the archive and press the M1 time frame with the left mouse button, until the gray icon becomes yellow. To start the trading robot test open the strategy tester and press Ctrl+R. Then choose a currency pair, time frame and the type of a test. Finally, press the “Start” button and enjoy the results.

So, I tested numerous demo accounts and used various trading robots. I consider it as the main reason why I have become a successful trader. The second lesson, I’ve learned is that thoughtful preparation is a key to success. Learning more about forex market and mindfully investing you are protecting yourself from the losses.


Latency Arbitrage vs 2 leg arbitrage

There are many techniques and algorithms for trading financial assets in HFT trading. Strategies, which required a lot of time and efforts, are now completed in a matter of milliseconds. This has become possible by the automated trading robots. Trading robots were repeatedly improved, updated and optimized, as any other software. Therefore, the number of their specifications has grown. The impulse development of this area has also provoked additional improvements for the trading and the FIX API protocol was created. The idea of this protocol is that the financial information including quotes now comes much faster. Moreover, nowadays any trader can access this protocol through the FIX API broker.

Since this protocol allows getting the quotations faster, this is an advantage for trading. This feature influenced the emergence of the arbitration type of transactions.

The arbitrage is divided into two types:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today I will provide you with a short FIX API tutorial, where we would analyze each type of the algorithmic arbitrage strategy.

FIX API Latency Arbitrage is a strategy which allows performing trading operations based on brokerage “delays.”

FIX API 2-legs Arbitrage strategy simultaneously opens different orders (of selling or purchasing) for the same financial asset at different platforms. It happens when the price for this asset differs on these platforms.

Here are the main principles of these strategies:

FIX API Latency Arbitrage conducts an analysis and monitors the price on the currency pairs. Then it finds the deviation in price and purchases the cheaper pair. The main idea is that it identifies the “fast” broker, who ensures the timely data update and follows a real situation on the market. Moreover, it is crucial to identify the “slow” broker on the market, who gets the quotations slower than the others. The account would be opened in the second broker and the trading would be done through it.

For example, the price for the EURGBP currency pair is 1.22343 from the “fast” broker and 1.22333 from the slow one. The difference of 5 pips is the profit for the algorithm. The robot buys a currency pair from the second broker and fixes the result according to the “quick” broker price at the moment of opening. It is done within the FIX API Latency Arbitrage API strategy.

2-legs Arbitrage analyzes the same asset on two platforms and compares if there are any price deviations. The Latency Arbitrage does the same thing. However, it is not necessary to identify which broker is “slower” as the trading is done on the both platforms. The robot is analyzing the asset, compares the prices on it and if there is an exchange difference it opens a deal with the broker, who has the lower price. Accordingly, it sells the asset where the quotes are higher.

For example the price for EURGBR currency pair is 1.23455 form one broker and 1.23450 from another. The trading robot, which works on the FIX API 2-legs Arbitrage strategy would open the deal for purchasing from the first and the second broker. These 5 pips would be a potential profit for the trader.

So what are the advantages and disadvantages of the fix api arbitrage strategies?

You need to investigate the weak sides of the both strategies in order to identify which one is better.

It is very easy for the broker companies to identify the Latency Arbitrage, as they also work with robots that conduct a search for this type of trade. After all, the deals are concluded in less than a second and are completed in large numbers. Thus, the broker can affect the trade due to an additional spread or delay. 2-legs Arbitrage trade is hard to track. It is because the trader will have a minimum profitability (5 pips in our example), which allows keeping the position from a few seconds to several minutes. This kind of operations cannot be tracked. In addition, the second part of the transaction is traded from an absolutely another broker, which makes the detection process even more difficult. Also, the key disadvantage of the Latency Arbitrage strategy, which is the advantage of 2-legs Arbitrage at the same time is the search for a more “slow” broker, which leads to the constant tracking of trading specifications of brokerage companies. Worth mentioning, that it does not make a difference for the FIX API 2-legs Arbitrage.

Summarizing, I want to emphasize that you need a FIX API forex broker, for a successful robot, which will enable you to trade at market quotes. It is also worth mentioning that each of the considered strategies is profitable, and this is, in fact, the main criterion. Still, the 2-legs Arbitrage strategy is simpler in use and lacks disadvantages.

Latency Arbitrage: what is this?

An automated trading is gaining more and more interest from traders each year. The reason for that is that nowadays digital industry requires all processes to be automated. The trading on the foreign exchange market is not an exception.

There were many resources and helping instruments developed in order to allow traders and significant market players to do the algorithmic trading. The FIX API is one of them. It allows to bypass the brokerage platform (terminal and server) and to trade directly with the market liquidity. However, it may be challenging for an ordinary broker to do it, so one still should use a FIX API broker.

Exactly direct access to the prices and quotes allows using such a popular trading type as an arbitrage for the high-frequency trading.

An arbitrage is a type of a trading system. It is based on the trading on the minimum price difference on the particular currency pair or brokerage time latencies.

Based on this method there are 2 types of the trading operations:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today we are going to discuss the first one, which is a Latency Arbitrage. We would investigate the crucial advantages, disadvantages and key features of this strategy.

The advantages of the Latency Arbitrage

The Latency Arbitrage is also called 1-Leg fix api arbitrage, which means, that you get an access to the quotes and prices way ahead of other bidders. The direct connection to liquidity through the FIX API or to servers close to the exchange platforms gives an early access to the market prices. For instance, the most of the broker companies in the US work on the NBBО system. It allows HFT traders, who use the Latency Arbitrage to get the data on prices much earlier than the others. It means they can commit several trading operations within milliseconds.

The disadvantages of the Latency Arbitrage

The brokerage houses often block or “interfere” with normal trading because of the tremendous FIX API trading popularity. They set additional spreads, slip or delay execution of orders and it simply kills the trading mode, according to this algorithm. The robot can be easily detectable as it commits about 100-200 transactions per day for a short period of time and fixates approximately 5-10 points. This is the reason why brokers with the non-market liquidity are not welcoming such trade.

The key Latency Arbitrage features

The one only needs one account with a broker, which will be directly used for trading in order to successfully trade according to this strategy. It is worth mentioning, that the account should belong to the “slow” broker”, which gives an access to the FIX protocol. However, there could be some manipulations on the companies’ part, as sometimes the weak brokers are used. To avoid this you need to test the broker with a small amount of money and make sure it works properly on the open trading.

Here is an example of the arbitrage trade, on the arbitration latency principle

The robot provides an analysis of the “lagging” broker and compares its quotes to the market ones. For instance, EUR/USD currency pair costs 1.07122 on the market and 1.07115 from the broker. This 7 pips difference is a profit for a robot, which decides to open a short-term speculative position to buy the asset. Following this algorithm, a robot can compare a couple of algorithms simultaneously and make transactions at the same time. The great amount of the instruments and trading operations guarantee success for 90% of the transactions and the high rate of return.

Finally, I want to emphasize that the robot, working according to this algorithm should use a fix api trading principle. It is an important feature in a robot’s success. This is because any delays or problems from the brokerage company can have a negative impact on the result.