Arbitrage Strategy for MetaTrader

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This strategy is based on an arbitrage concept, differing from traditional arbitrage by focusing solely on exchange contracts rather than commodity and exchange price differences. The core idea is to buy when prices are low and sell when prices are high, adjusting trading volume based on price movement. Specifically, lower prices trigger larger buy volumes, and higher prices trigger larger sell volumes. This approach functions as a counter-trend strategy. When trading a single pair, profits can be realized from pullbacks, trend reversals, and range-bound periods, while trends may lead to equity losses. A typical test case demonstrates exceptional parameters, provided equity is not the primary concern. In cases of low equity or margin calls, the Expert Advisor (EA) can utilize remaining deposit funds to manage the balance, as verified on a demo account where a margin call was successfully navigated. This strategy is more resilient than methods like Martingale, which suffer from exponential losses. If account equity is insufficient, additional investment can be made, as the strategy is designed to eventually recoup all debts. Unlike Martingale, where profit is linear but losses are exponential, this strategy exhibits near-linear profit and loss, allowing it to endure prolonged downturns and wait for favorable market conditions. To mitigate sharp equity declines, multiple EAs can be deployed on different symbols for diversification, smoothing equity fluctuations. An alternative method involves group multi-trading of symbols with inverse quotes. In this setup, if one symbol trends upwards and another trends downwards, EAs will execute opposite trades. This constitutes true arbitrage, where gains from buying low on one symbol and selling high on another affect equity directly, with balance adjustments occurring during reversals or pullbacks. Reverse quotes do not need to be in the deposit currency; any currency can be used as long as all symbols share the same first currency. Examples include USDJPY, USDCHF, USDCAD for USD-based inverse pairs, or EURUSD, EURGBP, EURCHF for EUR-based inverse pairs. A critical requirement is that all pairs within a group must have identical contract specifications, typically 100,000 units per lot. Pairs with differing contract sizes cannot be grouped. Configuration involves three non-optimizable parameters per EA: experts, magicnumber, and beginprice. The 'experts' parameter denotes the number of EAs in a group for inverse currency rates; for individual testing, it should be set to 1. Multi-currency mode is not supported in the tester, so group EAs must be tested individually. The 'magicnumber' distinguishes EA groups and should not conflict with existing history data. 'beginprice' is the initial bid price at the time of placing the EA, crucial for calculating quote movements. For backtesting, the price at the beginning of the historical data should be used. These parameters are set once before trading begins and remain constant. The initial price serves as a reference point for subsequent contract openings. Testing quality is not a primary concern as the EA places orders only on formed bars and relies solely on current prices, not technical indicators. However, users are welcome to test with detailed M1 history if desired.

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Configuration Parameters:

experts - The number of experts in the group of the inverse rate currency. For example, if there are three experts on the USDJPY, USDCHF, and USDCAD charts, this parameter must be equal to 3. The magic number for all three experts must be the same. When testing separate experts, this parameter should be set to 1. The multi-currency mode is not supported in the tester, so the experts of a group can only be tested individually.

magicnumber - The magic number. Intended to distinguish the EA groups of the inverse rate currency. It should be noted that at the moment of placing the EA group, the account history should not contain any closed trades with a magic number matching the number of the first group. The EA looks through the account history of both open and closed positions, and on their basis performs its calculations.

beginprice - The initial bid price for a specific instrument. This refers to the current price at the time of placing the EA. If the EA is tested on history data, then the price in the beginning of history should be set. All the parameters for each EA are set once before its start and are not changed during the automated trading - constant values. The current price at the moment of placing the EA is not the current price in any other time. It is the initial price for determining where the quotes went before the first contract on the instrument was opened. For the second contract, the initial price will be the opening price of the first contract. For the third one, the second, and so on.

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#property copyright "robotfx"
#property link "https://robotfx.org"
extern double experts = 1;
extern double beginprice = 1.8014;
extern int    magicnumber = 777;
static int    prevtime = 0;
static double bl = 1000;
int init()
  {
   return(0);

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.