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Arbitrage

Arbitrage

Posted By WhyLose.com

The Managed Arbitrage Account is the WhyLose.com flagship for our managed fund clients.

We trade a basket of three currency pairs at the same time on the same account.

The strategy is based on three currency pairs being traded concurrently when their prices are out of sync with each other to earn a profit. Our strategy does not rely on latency between multiple accounts like many Arbitrage strategies.

We close the basket of trades once the Profit Target in Overall Pips is met or when individual closing conditions are met.

Managed Arbitrage Account Signals are ideal for those looking for a low risk option in the forex market. By having three equal trades open at the same time in both directions for each currency, clients are better protected by market fluctuations. Trade open time averages a couple of days with this account rather than seconds like most Arbitrage methods. This is good because we rely less on latency and execution rate than your typical Arbitrage or Scalper trader.

The expected maximum drawdown is 8% with an average monthly return of about 2-3%. Results may vary based on broker fees and other market conditions.

A hard TP and SL price are set with each trade opened in the event of very large market swings or loss of connection with the broker’s server.

A minimum of $1000 deposit on a 1:50 leveraged account is needed.

On a longer time period all pairs don’t move equally and cancel each other out.

For example, take the current price of 3 pairs such as AUDUSD, EURUSD, and EURAUD and notice how at the specific instance you look at, there is a relative bias towards one pair. Then think if all pairs were priced at parity 1:1:1, there would be no bias.

Then look at a different point in time. Ideally, a long time period to compare such as 1 year apart. Notice that there is a difference in the relative value and bias of the pairs. That difference in value/bias is how we make money along with market inefficiencies. The pairs tend to gravitate towards each other so that if you were to trade a full circle, you would end up with what you started (minus fees of course). But if you trade when the market gets off a little, you can safely make around 2-3% per month.

Managed Arbitrage Account Signals will be available on Monday, 2nd January 2017. Please register below for The Workshop which is a one off charge of £99. Registration will close for 2017 at midnight on Sunday, 1st January 2017.

The Workshop covers us setting up your XM Account on our VPS to trade all Managed Arbitrage Account Signals. No further fees are payable for the VPS or signals until Monday, April 3rd 2017. Managed Arbitrage Account Signals are NOT available as an Alert only service. The subscription of £50 per month will commence on Monday, April 3rd 2017.



If you wish to open a forex brokerage account XM give you $30 worth of credit just for opening your first Real Account. This allows you to test their products and services with no investment and no risk. You can open an account XM here.

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