Htf trading bot
- Thread starter pietrofinance
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Why should they not accept it? In general, they are earning their money with commissions or bid/ask spreads. The more you trade with them the better for them. But there's an exception if it comes to CFD brokers which act as a counterparty to you (if they don't hedge their trades with you properly and take the risk). In that case they want you to lose your money with them (like a betting bookmaker) and might find a reason to close your account if you are consistently beating them.
So, you will need to choose a proper broker that offers exchange traded index/currency futures or large forex brokers with commissions/spreads where you trade against other clients. And they should provide an API for your bots. But I don't think you will be able to compete index and forex trading in liquid markets with large investment banks and hedge funds if it comes to low latency HFT and simple arbitrage.
The largest brokers with API are Interactive Brokers and Saxo. For forex you'll rankings on the web. Avoid brokers that are regulated in dodgy jurisdictions such as the Caribbean. Always look at the fineprint at the bottom of the brokers website.
So, you will need to choose a proper broker that offers exchange traded index/currency futures or large forex brokers with commissions/spreads where you trade against other clients. And they should provide an API for your bots. But I don't think you will be able to compete index and forex trading in liquid markets with large investment banks and hedge funds if it comes to low latency HFT and simple arbitrage.
The largest brokers with API are Interactive Brokers and Saxo. For forex you'll rankings on the web. Avoid brokers that are regulated in dodgy jurisdictions such as the Caribbean. Always look at the fineprint at the bottom of the brokers website.
As much as i know all the broker won't accept htf trading cause it make to much money. I know there is someone that accept it but still can't understand. So I will have to look for broker makes money in spread and let trade people against them?
I suppose you trade against broker mainly when the brokerage itself is a St. Vincent-based "B book" boiler room. In most other cases, and especially with brokers like IBKR, Saxo, Swissquote etc. high frequency trading is what large portion of their institutional clients does every millisecond when markets are open 😀
HFT does not work with most brokers, if they find you doing it the accounts will be blocked, and it depends on the type of trading you are doing, I installed a Crypto arbitrage bot for someone a few years back using in-memory architecture (mainly cross exchange stat arbitrage and converted from the Forex architecture), it could out trade Binance but cost $15k-20k plus install fees, the problem was they didn't have the capital to make it work as they wanted to use primary assets like BTC and ETH, not altcoins.
Forex and indexes are even more difficult, in Crypto there are still inefficiencies, in the primary markets such as Forex there are none and the spreads make it impossible unless you are on-exchange with servers at Equinix hubs, which they charge $10,000s for, it is possible to use millisecond datasets to identify mean reversion with cross exchange but the amounts are so fractional that the probability of making profit in Forex is zero, the fintech cost along could never justify it.
Forex and indexes are even more difficult, in Crypto there are still inefficiencies, in the primary markets such as Forex there are none and the spreads make it impossible unless you are on-exchange with servers at Equinix hubs, which they charge $10,000s for, it is possible to use millisecond datasets to identify mean reversion with cross exchange but the amounts are so fractional that the probability of making profit in Forex is zero, the fintech cost along could never justify it.
This is a long story but short...The truth is, if the broker allows you to use arbitrage they have 100% a plugin for anti-arbitrage and scalp. There is no such way. 99.99% of the brokers are against you...You must keep searching all the time for brokers, but if you master it you can make good money with that.
My point is arbitrage works very well on a broker's B-book, you earn and they lose. When brokers find out they block your account and sometimes won't pay profits. Then you must find another broker that is b-book to keep making a profit. i hope that help to understand the shady side of forex brokers...
It's true, the key is to have many different broker pairs and stat arb trade between them which then averages out and normally they don't catch on, Forex is saturated but there are still opportunities in areas like crypto/altcoins, and it's true Direct Market Access requires things like hosting via Equinix next to the exchange servers, which this bypasses because it hooks directly in to 10s and 100s of exchange APIs.
https://www.prlog.org/12808542-arbx...o-arbitrage-platform-for-bitcoin-futures.html
https://www.prlog.org/12808542-arbx...o-arbitrage-platform-for-bitcoin-futures.html
Hi Pietro,
brokers trading against you is something of the past, and I've been in the FX market since 2001, when EUR/USD spread was 5 pips, LOL... If you stay away from CFDs which, as some have already pointed out, are basically bookmakers trading against you, any regulated broker, even on a MT4 platform, are ECN/DMA shops that will make money on a per-trade commission basis. You've got to choose wisely, as some charge unreal commissions per million traded which eat away your profits if you're a scalper. Other than that, I don't see any chance of a spot FX regulated broker taking the other side of your bet and running their book. Why should they anyway? More overhead, position risk, etc...all negatives in today's world.
Swiss/European/UK/Middle Eastern regulated brokers (spot FX) will work alright for you.
Hope this helps.
NVO
Not anymore. Retail MT4 platforms nowadays have aggregated liquidity pools that are better than "the big boys" platforms. First-hand experience, not just hearsay. I have traded tickets of 5M better in MT4 than some of the institutionals (Currenex, Hotspot, etc).
brokers trading against you is something of the past, and I've been in the FX market since 2001, when EUR/USD spread was 5 pips, LOL... If you stay away from CFDs which, as some have already pointed out, are basically bookmakers trading against you, any regulated broker, even on a MT4 platform, are ECN/DMA shops that will make money on a per-trade commission basis. You've got to choose wisely, as some charge unreal commissions per million traded which eat away your profits if you're a scalper. Other than that, I don't see any chance of a spot FX regulated broker taking the other side of your bet and running their book. Why should they anyway? More overhead, position risk, etc...all negatives in today's world.
Swiss/European/UK/Middle Eastern regulated brokers (spot FX) will work alright for you.
Hope this helps.
NVO
Not anymore. Retail MT4 platforms nowadays have aggregated liquidity pools that are better than "the big boys" platforms. First-hand experience, not just hearsay. I have traded tickets of 5M better in MT4 than some of the institutionals (Currenex, Hotspot, etc).
In fact is very easy to understand, 80-90% of retail traders lose money on the market, whats their risk-taking position against customers? A simple method that they use is a hybrid broker. Where the risk department decides if you going to A book or B book. If you win you will be on A book, if you lose you will be on B book, simply as that.
You mention that you traded a ticked of 5M in mt4 better than exchanges that's because you are not connected to the real market, plus the real market is also rigged by institutions getting better prices than you. Is very sad, but unfortunately, that is true about this market. Forex is the modern casino, and I have tried more than 2 thousand brokers...
You mention that you traded a ticked of 5M in mt4 better than exchanges that's because you are not connected to the real market, plus the real market is also rigged by institutions getting better prices than you. Is very sad, but unfortunately, that is true about this market. Forex is the modern casino, and I have tried more than 2 thousand brokers...
OK, I'm not going to engage in absurd debates. If you don't know what Currenex or Hotspot is and how they form their prices (their liquidity pool), then best not to comment as to not show your ignorance. I have been on Goldman's, Citi FX's and Deutsche Bank Autobahn (FX) platforms as well, for your information. I know my stuff and I don't take it very well when a know-it-all comes in and rebuffs my comment with BS. I'll say it again: there are MT4 brokers at institutional-grade level with far better STP execution and liquidity aggregate pool than the names I mentioned. Period.
PS: The A and B book I know very well as I had the founder of a rather large now-bank who started as an FX broker confirm it to me during a lunch we had. He said he was more interested in hiring tech guys who would create predictive models to disconnect losers from DMA so they could profit from their losses than sales people. That was in...2005. The broker-turned-bank doesn't do that anymore, as the volume they now execute is large enough for commissions to compensate for not having to deal with overhead and pricy tech executives. Their strategy now? Hire better wealth advisors to generate more REAL volume traded.
I'm not commenting anymore on this thread. I believe I've made myself clear enough.
NVO
PS: The A and B book I know very well as I had the founder of a rather large now-bank who started as an FX broker confirm it to me during a lunch we had. He said he was more interested in hiring tech guys who would create predictive models to disconnect losers from DMA so they could profit from their losses than sales people. That was in...2005. The broker-turned-bank doesn't do that anymore, as the volume they now execute is large enough for commissions to compensate for not having to deal with overhead and pricy tech executives. Their strategy now? Hire better wealth advisors to generate more REAL volume traded.
I'm not commenting anymore on this thread. I believe I've made myself clear enough.
NVO
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