Key Features:
- Automatic Detection of Arbitrage Opportunities: This system leverages live currency pair data to pinpoint profitable arbitrage situations.
- Dynamic Trade Management: It actively opens and closes trades based on the calculated arbitrage potential, ensuring your positions are optimized for maximum profit.
- Plotting Functionality: Optionally, you can track the maximum observed price discrepancy for deeper analysis.
Input Parameters:
- Lot Size per Thousand (default: 0.01): Adjusts the lot size for every $1,000 in your account, so your trade sizes scale with your balance.
- Total Commission for Lot Traded (default: 7.0): This parameter accounts for the expected commission per lot, ensuring your arbitrage calculations remain profitable after fees.
- Plot Max Difference (default: false): Enable this option, and the EA will log and display the maximum observed price discrepancy in the Expert tab.
Trading Logic:
- The EA calculates theoretical cross rates and compares them with the actual market rates for EURUSD, GBPUSD, and EURGBP.
- It assesses whether the difference between these rates, adjusted for commission and spread, creates a viable arbitrage opportunity.
- If an opportunity is identified, the EA executes trades across the three currencies, minimizing inherent risk and locking in a risk-free profit when the market aligns with the arbitrage calculation.
- Two helper functions, ClosePosSide() and CloseNegSide(), manage the closure of profitable and loss-making positions, allowing the strategy to adapt in real-time to market shifts.
This EA is a powerful tool for traders keen on exploring arbitrage opportunities in the Forex market. It takes a calculated approach, capitalizing on price inefficiencies among correlated currency pairs. It's perfect for advanced traders looking to enhance their strategies with effective arbitrage techniques.
Note: While backtesting might show impressive profits, remember that real market conditions—execution speed, liquidity, and broker-specific factors—can significantly influence the success of these arbitrage strategies. Be sure to conduct thorough testing in a demo account before going live.
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