Hedge (2-legs) Arbitrage Software Settings

We recommend to do following steps to adjust Hedge (2-legs) arbitrage software:

1. We recommend to use FIX API Brokers and  FOK (fill or kill) limit orders to avoid losses by reason of the slippage. Open trading connection parameters for both brokers and check “Open with limit orders” and “Close with limit orders”

FOK orders for 2-legs arbitrage software



2. Next step you should add symbols for trading. We recommend to start trading with Lot size = minimal lot size allowed by your brokers. It helps you to avoid loses during adjusting period.

2-legs arbitrage symbols for trading

Min pips –  software can close orders on both brokers only if price will be changed  on both brokers on “MinPips” value. This option helps to hide short term trading. We recommend to use Min pips =6 -7;

Min time -software can close orders on both brokers only if after the opening of the order will take more time than “MinTime” value. This option also helps to hide arbitrage. We recommend to use 60 -80;

Diff to open – price difference between 1st and 2d broker for order opening;

Diff to close – price difference between 1st and 2d broker for order closing;

We recommend to start with “difference to open” = 1.5 and “difference to close” = 1

Slippage 1 – acceptable  slippage on 1st broker and Slippage 2 – allowed acceptable on 2d broker;

We recommend to start with Slippage 1 = 0.3 and Slippage 2 = 0.3.  Then if you have the orders which was opened  and immoderately closed on one and no orders on another one, by reason of the slippage,  you should increase “Slippage” one broker with no orders, and vice versa.

For example: Slippage 1 =0.3 and Slippage 2=0.3  You have 10 orders on broker 1 that was opened and immediately closed, and you have only 1 order on broker 2 and in log you see that other 9 orders was rejected by broker 2 because of the slippage. We recommend to increase Slippage 2 from 0.3 to 0.5 and also increase difference to open to 2.   etc.

Max Spread 1 – acceptable spread on 1st broker and Max Spread 2 – acceptable spread on 2d broker. You alos can increase Max spread if you find that orders  was rejected by broker because of the spread. We do not recommend to increase spread higher the on 20% from average spread on the symbol.

If your settings correct, you should have 12+ orders per day with 1-3 rejected orders on first or second broker. If your rejected orders only on one broker, you can improve your settings.

You can buy Hedge (2-legs) arbitrage software here: http://offers.fxpartner.net/2-legs-arbitrage/