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# Swap Arbitrage

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First of all, for who doesn't know what swaps are, they are implementation of differential interest rates. We aren't going to present here the implementation of swaps starting from the differentials, but the purpose of the article is to show how the swaps may be used to make money with a small amount of risk.

Swap Arbitrage, as a hedging for interest technique, is another application of Kreslik currency rings: this time there is no need for FPI calculation or generation of virtuals. All it matters is that the currency ring to be correctly placed, and to generate interest by its simple existence. I called it "Swap Arbitrage", because, if we cut out the forex impact, which is usually fixed due to hedging, it's like buying lower and selling higher swaps. The tinier the results, the more risky Swap Arbitrage is, because the swaps need longer time to recover spread loss, time in which fundamental events may alter the interest rates.

1. Generating all the possible versions of available Kreslik rings on a broker

======================================================

In my previous article about the Intercross Arbitrage I covered some BcLib functions helpful in reading MetaTrader content. The first function that needs to be called is GetSymbolsAppendix() to retrieve the symbols appendix, then the GetCurrenciesAndPairs() to get available currencies and pairs. The think pattern of this strategy is the one from Triangular or N-angular Arbitrage. We suppose that we have funds denominated in a currency, that we sell for the next proposed one, and so on, until the ring is completed. This would be hard to implement if we'd use directly the pairs. So we start using the currency list available in UsedCurrencies[] . Suppose we have n currencies (in fact, CurrenciesNo). Every one of them may be , or be not, in a currency ring. Thus we have 2^n combinations. Of course the 2^n include invalid rings, such as 0 , which includes no currency, and others with one or two currencies inside. These are sent to scrapyard and we focus on almost valid currency rings with at least three currencies. I said almost because at the time of their generation we don't know that the pairs to link up the currencies exist for real. Generation is simple, by using a simple cycle from 0 to (2^n)-1 and converting the number to binary, then completing the result with leading zeros. Say for example UsedCurrencies[] has EUR, USD, GBP, JPY and CHF (only these five). Then for example 13 would be translated to binary as 1101, completed with leading zeros to 01101 (to be five digits length), and then we can read the what the 1s mean: USD, GBP and CHF. Once that we have this combination, we could then permutate it to generate the same ring from all possible directions. Then we test each resulted ring for validity (if all pairs exist (of course, if the ring has three currencies, a test on original combination is enough, if it has more, there must be a test on each permuted combination). Once valid, we calculate the overall swap, and, if posible, we keep its combination and permutation numbers on hand (I couldn't generate arrangements, nor combinations directly ; arrangements are nothing more than permuted combinations). After studying all possible combinations or only some of them (say only 3-currency rings) we may have already a best ring, which is the maximum that can be got in given conditions. If there is no best ring, swap arbitrage is impossible.

Powerful BcLib functions to achieve this:

string ConvertTo(int base,int number)

The function converts the number in given base. It's reverse function is int ReconvertFrom(int base,string number) that converts back to base 10.

The function fills string <s> with <fillwith> strings (intended to be chars) to fill up the total length; similar functions: Padr and Padc. These functions originate from FoxPro.

void GenPermutation(int n,int elem,int &perm[])

Generates the permutation <n> (0 - based) of <elem> elements inside array perm. Array will contain numbers from 1 to n.

The opposite of this function is int FindPermutation(int elem,int perm[]) , which will return given's permutation index.

bool ContractExists(string symbol)

Returns true if given symbol exists in the datafeed. It's runtime based, doesn't look up the UsedPairs[] as it can be used for any symbol, not only forex pairs.

This is an older function, written by me before I realised MarketInfo(...,MODE_TRADEALLOWED) is available. Now the function will ultimately return MODE_TRADEALLOWED inquiry, however this aspect is a bit controversial, although MODE_TRADEALLOWED inquiry may return False when trade context is busy, so when the contract is really traded.

This is a code excerpt from the SwapFinder (one of the first implementations of this algorithm):

```for (icomb=maxim;icomb>=0;icomb--)
{
crrcies=Occurs("1",image);
valid=false;
if (crrcies>=3&&crrcies<=maxcrrcies)
{
maxperm=Factorial(crrcies)-1;
combimg="";
for (iimg=0;iimg<CurrenciesNo;iimg++)
{
if (StringElement(image,iimg)=="1")
combimg=StringConcatenate(combimg,UsableCurrencies[iimg]," ");
}
WriteLn(StringConcatenate("Studying ",combimg," having ",DoubleToStr(maxperm+1,0)," permutations"));
for (iperm=0;iperm<=maxperm;iperm++)
{
ROA=-1;
ROE=-1;
valid=IsConfigValid(image,iperm,crrcies,Contracts,Ops);
if (valid==True)
{
EstablishRing(crrcies,Contracts,Ops,Volumes,Usage,TotalUsed,Swaps,Interests,NormalROA,WeightedROA,ROA,ROE,FXResult,FinalROE,False);```

As you see, the code is not complete, as none of the for cycles is completed; See how <image> is made up by ConvertTo() and Padl() , number of currencies is counted in <crrcies>, then currencies are extracted in the <iimg> cycle (only to be displayed), then permutations are being generated inside the <iperm> cycle, upon validation by IsConfigValid() function, and finally ring is being constructed by the EstablishRing procedure.

2. The mysterious realm of the swaps

============================

The swaps implementation in MetaTrader was always a mystery: the OrderSwap() function works ex-post, it retrieves the total interest cashed/payed on a order. The only way of knowing before is by using MarketInfo's MODE_SWAPLONG and MODE_SWAPSHORT. However, what it gives is a mysterious "swap". Is it an interest rate ? NO. Is it an interest ? NO. Ok. Enough fooling around with "Let's twist again". Let's see what it really is.

First of all, the result meaning is given by MODE_SWAPTYPE inquiry:

Metaquotes documentation : in points;

BcLib coverage: Yes;

Meaning: In pips;

Behaviour: the most stable ever seen;

Broker examples: ATC Brokers, Finex, FXLQ

==============================================

Metaquotes documentation : In the symbol base currency

BcLib coverage: No*

Meaning: In the first currency of the pair

Behaviour: Unknown,

but probably jumpy due to needed conversion in that currency

Broker examples: FXLQ recently (yes they have them different)

==============================================

Metaquotes documentation : by interest

BcLib coverage: No

Meaning: Unknown

Behaviour: Unknown

Broker examples: Never reported in wild

==============================================

Metaquotes documentation : In the margin currency

BcLib coverage: Yes

Meaning: In pips of the account currency

Behaviour: Very unstable

Broker examples: InterbankFX, FXDD

==============================================

The Swap2Interest_Volume from BcLib converts the swap to interest on a given volume (not lot). Useful when building swap strategies because you can find the actual swap before it would come.

*Not in the last version of BcLib. Find and replace the Swap2Interest_Volume function with the next body for this swap type to be included:

```double Swap2Interest_Volume(double volume,int swapmode,string contract,string appendix)
{
double m_tick;
double m_lotsize;
double swap;
double gc;
double res;
if (PairsNo==0)
GetCurrenciesAndPairs(appendix);
string contractf=StringConcatenate(contract,appendix);
int swt=MarketInfo(contractf,MODE_SWAPTYPE);
if (swt!=0&&swt!=1&&swt!=3)
{
Alert("Swap2Interest***** : swap type "+DoubleToStr(swt,0)+" not implemented !");
return(0);
}
swap=MarketInfo(contractf,MODE_SWAPLONG);
else
swap=MarketInfo(contractf,MODE_SWAPSHORT);
if (swt==0)
{
m_tick=MarketInfo(contractf,MODE_TICKVALUE);
m_lotsize=MarketInfo(contractf,MODE_LOTSIZE);
return(swap*m_tick*(volume/m_lotsize));
}
if (swt==1)
{
m_lotsize=MarketInfo(contractf,MODE_LOTSIZE);
gc=GetCurrency(StringSubstr(contractf,0,3),AccountCurrency(),appendix);
res=swap*gc*(volume/m_lotsize);
if (gc==0)
{
Alert("Swap2Interest***** : could not convert swap type 1 for "+contractf+" as GetCurrency() failed! Check contract and appendix!");
}
return(res);
}
if (swt==3)
{
m_lotsize=MarketInfo(contractf,MODE_LOTSIZE);
return((volume*swap)/m_lotsize);
}
}```

You can easily see in the code how the swap types were implemented:

Type 0: swap*m_tick*(volume/m_lotsize)

Type 1: swap*gc*(volume/m_lotsize), where gc is the first currency of the pair converted to account currency

Type 3: (volume*swap)/m_lotsize , similar to type 0 but without multiplicating with the tick value;

Picture of the SwapFinder_script running on ATC Brokers:

http://img222.imageshack.us/img222/2171/pictureofswapfinderscricm4.jpg

SwapFinder parameters:

extern int MarginUsage=90;

extern int MaxCurrenciesUsed=3;

extern bool JustTesting=False;

extern int Slippage=3;

extern bool ShowNegatives=False;

MarginUsage - the percent of the margin (or the leverage) that's used for the trades altogether;

MaxCurrenciesUsed - for 0, scans all the combinations (from 3 to n) currencies; for another value, scans combinations having from 3 to that value;

JustTesting - is a safety measure; it will trade only when the script is allowed to trade from the properties and JustTesting is set to True;

ShowNegatives - if true, will display financial data gathered on negative swap rings too.

Again, be cautious about the MarginUsage. Don't set it too to near 100%, as your effective margin during initiation of trades might get under the required margin and you would run out of funds before completion of trades. Also, be careful that in dangerous situations broker's datafeed may be damaged (the problem I've been talking on the Intercross Arbitrage article) and you won't be fully hedged, your trades being placed in profit/loss territory until the issue being solved.

How to read the SwapFinder window

Usage - the volume , in account currency , of the trade. Under the usages there is their sum, interpreted as Total Assets

% - the weight of the trade volume in total traded. The trades must be hedged, so the % value must be almost the same at them all equal to (1/no. of trades)*100

Volume - the volume of the trade, in units of the first currency of the pair

Lots - the volume, in lots

Contract - the pair symbol

Swap - the exact swaps for one lot, as answered by MODE_SWAPLONG and MODE_SWAPSHORT inquiries

Interest - the real interest earned/payed on the trade

NormalROA - the ROA (Return on Assets) of the trade as (Interest/Usage * 100) * 365 (later edited)

WeightedROA - the Normal ROA as weighted (by the percent occupied in Total Assets)

ROA is the sum of Weighted ROAs.

ROE (Return on Equity) calculated as ((ROA * Total Assets) / Account Equity) * 100

Forex result = costs of spreads

Final ROE = ROE - Forex result

3. Butterfly : a nonlinear hedge

=======================

Some time ago, as I was playing with pencil on paper drawing currency rings and trying to imagine a different kind of hedge that could make more swaps, I came up with the idea of a butterfly hedge ( because two currency rings with a common currency (common tip) look like the wings of a butterfly). However, two completed currency rings, with or without a common tip, are independant rings. They cannot produce more swaps, as one would be , say the best ring, and the other one, a lesser ring. However, this measure could add more safety to swap arbitrage, as it produces a slight diversification of the "investments" (the two currency rings). If we link up N currencies we obtain a simple , linear , currency ring, where EVERY CURRENCY IS EQUALLY BOUGHT AND SOLD. However, noone says it must be bought and sold once!

http://img166.imageshack.us/img166/8964/butterflyfm1.jpg

This was the first version of the butterfly hedge. The points are currencies. Among them O is mirrored (the two O represent the same currency). Features:

- the Z currency is bought 3 times (OZ, YZ, XZ) and sold 3 times (ZO, ZP, ZQ).

- the O currency is bought 3 times (PO, QO, ZO) and sold 3 times (OZ, OY, OX).

A better version of this hedge would be one without the needless ZO and OZ relationships and still the hedge would be a butterfly, since the "wings" could not work seperately.

Each model has a mirror. Just like any atom from Intercross Arbitrage could have played the role of bid or ask, similar any butterfly can be mirrorized simply by reversing the direction of the arrows.

This model doesn't look like a butterfly at all but it respects the same principles.

Looks like electronic circuitry huh?

http://img514.imageshack.us/img514/2331/rectanglehedgeoe2.jpg

(The double arrowed edges mean that volume , in account currency, is double than the one used on the other edges).

Now I don't say the butterfly hedges are necesarilly better than the currency rings. It may be worse in many situations, but tt's a different way of thinking hedge.

SwapButterfly's parameter list is similar to SwapFinder's. However, in the start(), you must assign UseModel to one of the preexistent models defined, or to a new one.

*TIP ABOUT BROKERS: If you find a swap hole in the broker's datafeed (meaning for one pair the cashed swap is bigger than the payed swap, don't just go long and short simultaneously, as this will alert the broker to repair the datafeed. Better place it as a ring or a butterfly, sure this opportunity will be included in the best provided solution).

## Comentarii Recomandate

Hi, me again. To e honest with you I really don't understand what you explaind above. Would you mind explaining it in plain language...I think an example would be appropriate.

Thanks as always

Juan

Hi, me again. To e honest with you I really don't understand what you explaind above. Would you mind explaining it in plain language...I think an example would be appropriate.

Thanks as always

Juan

Hi,

This is a currency ring placed on august 22:

http://img490.imageshack.us/img490/728/swapringrq6.jpg

The picture was taken august 24, about 15:30 server time.

I can't tell for sure if it took the big swaps Wednesday night (on Romania time swaps are wired exactly on midnight)

Now, as you can see, the swaps are net positive : 2.81 + 4.86 - 1.42 = 6.25

The result is contains mainly the spread cost, the pairs being hedged : 35.36 + 318.27 - 383.38 = -29.75

However, there is displayed -23.50 , which shows that 6.25 acquired from swaps are embedded in the result. The days pass, the cost fluctuates a little around a fixed value, but the swaps accumulate, absorb the costs and make profit.

I cannot read it correctly. thxs

I cannot read it correctly. thxs

Oh...forgot to put the table head

http://img46.imageshack.us/img46/3060/swapringfk3.jpg

and click where it says "Click to view full image"...you'll get the point then.

Yep, I did all the calculation in excel.

One question: I will earn 6.25 each day assuming that rates stay stable. Will be this pairs hedged against big movements...I would say no.. I think you will have to adjust the hedge if prices move considerably. Am I right?

I could not read this correctly, I will post again so people can read it.

The picture was taken august 24, about 15:30 server time.

I can't tell for sure if it took the big swaps Wednesday night (on Romania time swaps are wired exactly on midnight)

Now, as you can see, the swaps are net positive : 2.81 + 4.86 - 1.42 = 6.25

The result is contains mainly the spread cost, the pairs being hedged : 35.36 + 318.27 - 383.38 = -29.75

However, there is displayed -23.50 , which shows that 6.25 acquired from swaps are embedded in the result. The days pass, the cost fluctuates a little around a fixed value, but the swaps accumulate, absorb the costs and make profit.

--------------------

MQL4 Level 70 Archmage

One question: I will earn 6.25 each day assuming that rates stay stable. Will be this pairs hedged against big movements...I would say no.. I think you will have to adjust the hedge if prices move considerably. Am I right?

1. Not 6.25 a day (I couldn't see exactly if it took the Wednesday night, when the swaps are calculated for 3 days).

2. ATC Brokers (Velocity) is one of the most stable.

3. The pairs are hedged in big moments. However, if one the broker datafeed is damaged, you won't be hedged any longer. I have seen it going in the profit/loss territory about 30% of account equity. After the big moves the hedge was reestablished like nothing happened, although the rates were significantly altered. And by big moves I don't mean Friday moves, but fundamental shifts that criple broker's datafeed. Because, when the hedge pushes result at +/- 30% equity, one of the pairs is damaged. Otherwise, it would that the market would stay in triangular arbitrage opportunity for hours, which is impossible, triangular arbitrage opportunity lasts up to 10 seconds, so you are unhedged because of the broker, not because of the market. My answer is "no", you don't have to alter the trades after fundamental shifts.

Could you please post another snapshot to show how your account is doing today? Do you still have the same ring open?

Could you please post another snapshot to show how your account is doing today? Do you still have the same ring open?

This is a picture of the ring taken August 27, 23:50 Romania time:

http://img260.imageshack.us/img260/3476/ringpicturetakenaug2723wf5.jpg

And this picture is taken 10 minutes later, August 28, 00:00 Romania time:

http://img265.imageshack.us/img265/4416/ringpicturetakenaug2800ju7.jpg

Now we calculate what Juan wanted earlier: the daily swap:

Swaps late Monday : 3.52 + 6.10 - 1.78 = 7.84

Swaps early Tuesday : 4.23 + 7.34 - 2.14 = 9.43

Daily swap : 9.43 - 7.84 = 1.59 meaning about 0.318% of the original \$500 account equity

You will have to consider the spreads for getting in and out. So you will have a cost of 23USD x 2= 46USD. If you make 8 usd per day average due to swap interest, in 6 days you will have the costs of the startegy recovered.

In terms of the hedged ring, what happens if correlations change? For example imagine a big move with correlations between pairs changing..will the hedge be stable?

Anyway, I took your entry trade info and valuated the hedge portfolio again with bloomberg data and it is still hedged! Nice

You will have to consider the spreads for getting in and out. So you will have a cost of 23USD x 2= 46USD. If you make 8 usd per day average due to swap interest, in 6 days you will have the costs of the startegy recovered.

In terms of the hedged ring, what happens if correlations change? For example imagine a big move with correlations between pairs changing..will the hedge be stable?

Anyway, I took your entry trade info and valuated the hedge portfolio again with bloomberg data and it is still hedged! Nice

The idea is to get out as far as possible, and when the rings change, to try keep as much of the ring intact as possible in order to minimize spread costs (of the closed trades , which become effective, and of the new opened ones, which become virtual).

Now it makes 1.6 a day...if it would have been 2 , would have been better.

Bog, if I understood well, you want to profit from the paying interests from the swaps keeping a hedged position. If swap paying increases is good to stay in the position...why are you calculating the differences in the interests paid by the swaps each day? What is the reason calculating 1.59??

Daily swap : 9.43 - 7.84 = 1.59 meaning about 0.318% of the original \$500 account equity

Bog, if I understood well, you want to profit from the paying interests from the swaps keeping a hedged position. If swap paying increases is good to stay in the position...why are you calculating the differences in the interests paid by the swaps each day? What is the reason calculating 1.59??

Daily swap : 9.43 - 7.84 = 1.59 meaning about 0.318% of the original \$500 account equity

Well, just to have an idea about how many calendaristic days (not working days) remain to the full absorbtion of the spread...

I don?t get it... why you calculated this:

Daily swap : 9.43 - 7.84 = 1.59 meaning about 0.318% of the original \$500 account equity

The calculation of how many calendaristic days (not working days) remain to the full absorbtion of the spread is around 8 usd per calendar day...so with 6 days you cover the costs of spreads (in and out). Costs 23USD x 2= 46USD. If you make 8 usd per day average due to swap interest, in 6 days you will have cover the costs.

I don?t get it... why you calculated this:

Daily swap : 9.43 - 7.84 = 1.59 meaning about 0.318% of the original \$500 account equity

The calculation of how many calendaristic days (not working days) remain to the full absorbtion of the spread is around 8 usd per calendar day...so with 6 days you cover the costs of spreads (in and out). Costs 23USD x 2= 46USD. If you make 8 usd per day average due to swap interest, in 6 days you will have cover the costs.

No, you're wrong. Monday to Tuesday is a normal night... 1.59 is the daily swap, calculated as SWAP TODAY - SWAP YESTERDAY. The digits in the 'swap' column does not indicate this is gonna come every day, but it's the accumulated swap. That is the "spread absorbtion" per calendar day, not 8 USD per calendar day. How did you get that 8 USD / day anyway ? And what's that 23 USD x 2 = 46 USD supposed to mean ? I remember spread costs were about 30 USD...

Ok. So the column "swap" in the picture is the accumulated swap since you entered (ithought it was the payment for each day). So you are making 1.59 USD a day, so you need 37 days to cover the costs of the swap.

Btw, in what broker have you found this?

Best regards

Juan

Ok. So the column "swap" in the picture is the accumulated swap since you entered (ithought it was the payment for each day). So you are making 1.59 USD a day, so you need 37 days to cover the costs of the swap.

Btw, in what broker have you found this?

Best regards

Juan

It would have been cool to be daily swap... I found this on ATC Brokers...

There are also others where it works. InterbankFX, FXDD, FXLQ are excluded.

By the way it looks now, needs 15 days.

Thank you for sharing.

Just had a view at your calculations - you did a good job packing it all together in an EA.

Some brokers are using amount sizes instead of lot sizes. How can anyone modify your EA to use full amount (10.000) instead of lots (0.1)?

Kind regards, Andi.

Ok. So the column "swap" in the picture is the accumulated swap since you entered (ithought it was the payment for each day). So you are making 1.59 USD a day, so you need 37 days to cover the costs of the swap.

Btw, in what broker have you found this?

Best regards

Juan

It would have been cool to be daily swap... I found this on ATC Brokers...

There are also others where it works. InterbankFX, FXDD, FXLQ are excluded.

By the way it looks now, needs 15 days.

Why are they exluded? Just opened an Arb (eraud, eurjpy, audjpy) with FXDD Demo.

Andi

Thank you for sharing.

Just had a view at your calculations - you did a good job packing it all together in an EA.

Some brokers are using amount sizes instead of lot sizes. How can anyone modify your EA to use full amount (10.000) instead of lots (0.1)?

Kind regards, Andi.

Hi Andi,

I don't understand exactly what you mean: If you're thinking about how much of the available funds is used, modify the MarginUsed parameter. However, now it's at 90% of available leverage, further increase might make impossible closing the ring.

If you want to use Volumes, instead of lots, check this:

volumes=UnitsToLots(units,contracts)*MarketInfo(contracts,MODE_LOTSIZE);

Where they are, the volumes are already calculated. The purpose of these lines is to round volumes to nearby lot size: for example 11900 in volume is rounded to 0.1 lots of 100000 Lotsize and final volume resulted is 10000.

Just replace them with

volumes=units;

the result of the volumes[] would be intact, exactly how it gets out of the calculation (I didn't check out the SwapButterfly, this is the way it might do it - volumes are rounded after)

Anyway, all MetaTrader brokers are using lots. Different implementations of lotsizes, but lots, not volumes, on any of them. The script will not be working on brokers that are non MT-compatible, but the algorithm remains usable.

As a correction to the script, where I see it now needed to be done, would be on the OrderSend() line:

this is now : OrderSend(Contracts,Ops,NormalizeDouble(Volumes/1000*0.01,2),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

needs to be: OrderSend(Contracts,Ops,UnitsToLots(Volumes,Contracts),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

If you want to use Volumes, instead of lots, check this:

volumes=UnitsToLots(units,contracts)*MarketInfo(contracts,MODE_LOTSIZE);

Where they are, the volumes are already calculated. The purpose of these lines is to round volumes to nearby lot size: for example 11900 in volume is rounded to 0.1 lots of 100000 Lotsize and final volume resulted is 10000.

Just replace them with

volumes=units;

the result of the volumes[] would be intact, exactly how it gets out of the calculation (I didn't check out the SwapButterfly, this is the way it might do it - volumes are rounded after)

Anyway, all MetaTrader brokers are using lots. Different implementations of lotsizes, but lots, not volumes, on any of them. The script will not be working on brokers that are non MT-compatible, but the algorithm remains usable.

As a correction to the script, where I see it now needed to be done, would be on the OrderSend() line:

this is now : OrderSend(Contracts,Ops,NormalizeDouble(Volumes/1000*0.01,2),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

needs to be: OrderSend(Contracts,Ops,UnitsToLots(Volumes,Contracts),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

e.g. Crownforex in Switzerland are not allowing to enter lot but full lotsize. When attaching your EA to it, it does nothing, because of this difference.

Could you please explain why you are excluding FXDD, InterbankFX and FXLQ?

Greetings, Andi.

If you want to use Volumes, instead of lots, check this:

volumes=UnitsToLots(units,contracts)*MarketInfo(contracts,MODE_LOTSIZE);

Where they are, the volumes are already calculated. The purpose of these lines is to round volumes to nearby lot size: for example 11900 in volume is rounded to 0.1 lots of 100000 Lotsize and final volume resulted is 10000.

Just replace them with

volumes=units;

the result of the volumes[] would be intact, exactly how it gets out of the calculation (I didn't check out the SwapButterfly, this is the way it might do it - volumes are rounded after)

Anyway, all MetaTrader brokers are using lots. Different implementations of lotsizes, but lots, not volumes, on any of them. The script will not be working on brokers that are non MT-compatible, but the algorithm remains usable.

As a correction to the script, where I see it now needed to be done, would be on the OrderSend() line:

this is now : OrderSend(Contracts,Ops,NormalizeDouble(Volumes/1000*0.01,2),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

needs to be: OrderSend(Contracts,Ops,UnitsToLots(Volumes,Contracts),price,Slippage,0,0,"RING "+DoubleToStr(Magic,0),Magic,0,Blue);

e.g. Crownforex in Switzerland are not allowing to enter lot but full lotsize. When attaching your EA to it, it does nothing, because of this difference.

Could you please explain why you are excluding FXDD, InterbankFX and FXLQ?

Greetings, Andi.

The correction I suggested would make it work under Crown ; Crown does not want full lots; it requires minilots , such as 0.1, 0.2...; no microlots, neither microlot adjustments (no 0.09 nor 0.11 are permitted). The function UnitsToLots handles the transformations of the volumes to the lotsizes agreed by broker. (However, be very careful about this, as microlots are important, as I demonstrated in my Intercross Arbitrage article). Now I'm asking: why do you need Crown for ? Crown has swap free regime.

FXLQ is different from FXDD and InterbankFX. The swap type 3 that I saw with FXDD and InterbankFX is very unstable. For example, if you run the script 20 minutes later you have another best ring. FXLQ on the other hand may change overnight even the swap types. I was waiting to trap swap type 1 on a trade in order to get the interest calculation formula for embedding in BcLib ; however, the next day, there were no pairs with swap type 1 and this thing was the most ockward to see: broker changing not only the swaps, but the swap types. If you want to use the script , cancel the line correction I told earlier ( "volumes=units" ) as the original version is better.

FXLQ is different from FXDD and InterbankFX. The swap type 3 that I saw with FXDD and InterbankFX is very unstable. For example, if you run the script 20 minutes later you have another best ring. FXLQ on the other hand may change overnight even the swap types. I was waiting to trap swap type 1 on a trade in order to get the interest calculation formula for embedding in BcLib ; however, the next day, there were no pairs with swap type 1 and this thing was the most ockward to see: broker changing not only the swaps, but the swap types. If you want to use the script , cancel the line correction I told earlier ( "volumes=units" ) as the original version is better.

I only was testing your code with some MT Platforms. You are right, Crownforex is useless as they offer interest free accounts. I only mentioned them because of their "unusual way" to enter amount, not lots.

What else broker do you recommend? How is your hedge going?

Greetings, Andi.

FXLQ is different from FXDD and InterbankFX. The swap type 3 that I saw with FXDD and InterbankFX is very unstable. For example, if you run the script 20 minutes later you have another best ring. FXLQ on the other hand may change overnight even the swap types. I was waiting to trap swap type 1 on a trade in order to get the interest calculation formula for embedding in BcLib ; however, the next day, there were no pairs with swap type 1 and this thing was the most ockward to see: broker changing not only the swaps, but the swap types. If you want to use the script , cancel the line correction I told earlier ( "volumes=units" ) as the original version is better.

I only was testing your code with some MT Platforms. You are right, Crownforex is useless as they offer interest free accounts. I only mentioned them because of their "unusual way" to enter amount, not lots.

What else broker do you recommend? How is your hedge going?

Greetings, Andi.

Strange, you were right, I opened Crown and tested. However, even if 1 lot = 1\$, UnitsToLots would still work if all server parameters are set correctly.

I'd say ATC Brokers for SwapFinder. My hedge is not going because for my cash 100% a year is roughly nothing...I need way more, that's why I'm working to do it with currency futures. It will be in my next article...

I'd say ATC Brokers for SwapFinder. My hedge is not going because for my cash 100% a year is roughly nothing...I need way more, that's why I'm working to do it with currency futures. It will be in my next article...

100% a year is nothing? With my developed strategies I'm happy to make 50-60%a year...

Best wishes, Andi.

I'd say ATC Brokers for SwapFinder. My hedge is not going because for my cash 100% a year is roughly nothing...I need way more, that's why I'm working to do it with currency futures. It will be in my next article...

100% a year is nothing? With my developed strategies I'm happy to make 50-60%a year...

Best wishes, Andi.

100% is quite nothing on my startup equity of \$500 the best...

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