Latency Arbitrage – How to Adjust Offset for DAX Trading

The biggest problem you face trading dax, with any arbitrage software, is offset. Offset for dax can often vary. And for this case, to avoid losses,  you should control and readjust it time to time.

latency arbitrage: dax offset

latency arbitrage: dax offset

To set up offset for DAX, you should put “Diff to Open” (difference to open) = 99999 or any other big value to prevent any orders during adjusting time.

Then check “Spread Slow” for couple minutes. Your “Bid Diff” and “Ask Diff”, under normal adjusted “Bid offset” and “Ask offset”, should vary between minus Spread Slow and zero.

In our example spread slow = 30 and in this case our “Bid Diff” and “Ask Diff” should vary between -30 and 0.

Input into the “Bid Offset”  value close to the value of “Bid Diff” .  In our example 190 (close to 187)

latency arbitrage step 2

latency arbitrage step 2

If value “Bid diff” vary between minus “Spread Slow” (-30) and o, щur settings are correct. If not, we should try to change “Bid Offset”.

In the next step we need to repeat the above-described for “Ask diff”

latency arbitrage step 3

latency arbitrage step 3

You must be prepared for the fact that such settings you may have to do several times a day but your efforts will not be in vain. Good luck!

Useful Links:

One-Leg Arbitrage Software

Two-Legs Arbitrage Software

FIX API Trader



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