The Mechanism of Latency Arbitrage Trading Robot

The automatic approach of analysis and forecasting of financial markets makes it possible to facilitate the trader’s lot in an uninterrupted trading process. To date, the market has evolved enough so that even the process of trading can be turned into a passive source of income. The trading robots help in this.

Most of the fix api traders have already automated their trading strategies, thus creating a huge demand for the development of auxiliary trading software. The Internet already has thousands of trading robots. However, quantity does not yet mean quality. Automation for the sake of automation does not bear any value and economic benefits to the manager.

Therefore, we decided to create those trading strategies that allow even the beginners to make their first trading operations on the fix api forex market in algorithmic mode.

When creating trading robots, we take into account the following parameters:

  1. The logic of algorithm (the chain of sequential actions should be like a trading strategy – simple and understandable);
  2. Optimization of the robot to the maximum yield parameters;
  3. Optimization of the robot for minimum risk parameters;
  4. Ability to work on any fix api forex brokerage

All these parameters are ideally combined in our trading robot Fix Api Latency Arbitrage  .

This software has an arbitration algorithm and it is based on the performance of speculative trading operations with a significant divergence of quotes on different brokerage sites.

The key feature of Latency Arbitrage is that for the analysis of currency pairs two sites are used simultaneously, but only one operation is performed. By accessing the fix api financial data protocol, we get the most current quotes that are currently in the market. Thus, these quotes are “true” for a trading robot and the values ​​of that same currency pair will be compared precisely with the values ​​of quotes through fix api. When the exchange rate difference reaches the stipulated values, the robot will perform the operation towards the value of the quotations based on the financial protocol.

In order to understand the algorithm in more details, let’s look at an example.

Quotations of the EURUSD currency pair through the financial protocol amount to 1.1200, while at the brokerage site (where the fix api trader has investment) the value of EURUSD is 1.1210. The trading robot will receive a signal that between the quotations of the same financial instrument a gap of 10 points has been formed, given the fact that the more “quick” value of the price is in the first case (fix api), then sale transactions will be open (in the direction of a more “rapid” value). The robot expects that quotes “catch up” with the values ​​of more relevant data. At the moment when this happens, the algorithm will close the positions with a profit of 10 points, which upon selling 0.1 lot will be 10$ of profit with a leverage of 1/100.

Such an algorithm allows us to carry out speculative positions and by opening a large number of trading operations to form high profitability indicators. At the same time, these speculations cause minimal risks for the investor’s trading funds, since losses will also have minimal values.

Having formed a positive mathematical expectation and key internal characteristics of our trading robot, we can confidently state its positive results, which are tested both on historical and real data.

The Fix Api Latency Arbitrage trading robot allows you to automate the process of making trading transactions, and it will also be an excellent tool for diversifying the fix api trading process. This software also combines with a number of manual trading systems, because the speculative algorithm will not violate the risk or money management in this combination.

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