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Author Topic: Swap Master - Market Neutral Arbitrage Trading  (Read 15361 times)

Offline Forex21

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #45 on: November 15, 2019, 04:28:24 PM »
Thank you. I decided to run my portfolio based on your research and applied for the accounts by the brokers mentioned in the user guide.

Great.

As far as I understood the positions will not run both directions at the same broker. Hedging will not be recognized.

Hedging wont be recognized but there is nothing what you needs to be hidden from the broker. We do not try to exploit some weaknesses in the MT4 structure to shave off some points here and there or trick around. We do not apply for islamic swap free accounts and then take advantage of the broker or anything like this.

What we do with Swap Master is proper trading.






Offline Forex21

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #46 on: November 15, 2019, 04:40:08 PM »
Hi guys,

Looks great!

You talk of slave and master units and also a "Central Control Unit" ... Do the EAs rely/are controlled by your servers/systems or do the EAs simply talk to each other and there's no other third party?

Just wondering if the EAs are independent or still need your systems/servers to work?

Many thanks!

There are two units:

1) The main (master) unit. I call it sometimes central control unit.
That is the unit what manages trades and terminals.

2) The secondary (slave) unit(s).
This unit(s) execute commands from the master unit and provides data to the master unit.

The system connects to our secure license server to validate your license. No other data are sent to our server or any other third party.

Offline Nasdaq100

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #47 on: November 15, 2019, 06:13:40 PM »
So as far as I understood you open 2 positions in two different pairs in broker A, and 1 position in broker B

Correct?

Do you help with broker suggestions and which pair to trade?

Could you please share one single trade set up on two different brokers to check their swaps and calculate the feasibility?

Thank you

Online dutchie

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #48 on: November 15, 2019, 08:59:29 PM »
Just wondering: will broker keep paying +swap when the amount on my account grows on a daily base.
I guess it's their money they have to pay me.
they might be tempted to lower it a little on a daily base.
 
There's a saying, success is doing what everyone else isn't doing, and not doing what everyone else is doing.

Online petersurrey

  • DonbonsPrivateGroup
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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #49 on: November 16, 2019, 10:42:11 AM »
Just wondering: will broker keep paying +swap when the amount on my account grows on a daily base.
I guess it's their money they have to pay me.
they might be tempted to lower it a little on a daily base.

Your positive swap account may lose money on the trade  - either way the broker makes money on the spread and shouldn't have an issue wither way.

Online petersurrey

  • DonbonsPrivateGroup
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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #50 on: November 16, 2019, 11:17:11 PM »
another question:) I can get approx 30% swap rate on a short USDMXN on one regulated well-known broker and zero on a hedge buy on another well known regulated broker; so what is to stop me just making that trade and sitting on it for a year 1 full lot = 30K?

Online dutchie

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #51 on: November 17, 2019, 10:21:22 AM »
another question:) I can get approx 30% swap rate on a short USDMXN on one regulated well-known broker and zero on a hedge buy on another well known regulated broker; so what is to stop me just making that trade and sitting on it for a year 1 full lot = 30K?
And there are many other pairs on which you can do the same: EURTRY, EURZAR, USDRUB etc.
I guess the costs will be pretty high but on the long term the swap will override these costs
Are these pairs a part of the Swap Master strategy?
There's a saying, success is doing what everyone else isn't doing, and not doing what everyone else is doing.

Offline Forex21

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #52 on: November 17, 2019, 12:54:37 PM »
another question:) I can get approx 30% swap rate on a short USDMXN on one regulated well-known broker and zero on a hedge buy on another well known regulated broker; so what is to stop me just making that trade and sitting on it for a year 1 full lot = 30K?

Swap rates are provided in three different format. xy % swap rate is none of them.

so what is to stop me just making that trade and sitting on it for a year 1 full lot = 30K?

Nothing stop you. As I wrote in a more detailed answer earlier, if you believe that it is that easy, go for it.

I can get approx 30% swap rate on a short USDMXN on one regulated well-known broker and zero on a hedge buy on another well known regulated broker;

Not a single regulated broker will give you a free ride when it comes to swaps. Some may call it different and will not charge you swap rate but will call it a overnight holding fee or something like this. Keep in mind that because there is no swap defined in the contract specification, it does not mean that there are no overnight holding costs.

If there is no swap, there will be swap, just with a different name. And if there is non at all,t he broker is most likely a bucket shop.

You could try of course to use a swap free account (islamic account) for one side but that is a recipe for disaster.

Offline Forex21

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #53 on: November 17, 2019, 01:10:09 PM »
And there are many other pairs on which you can do the same: EURTRY, EURZAR, USDRUB etc.
I guess the costs will be pretty high but on the long term the swap will override these costs
Are these pairs a part of the Swap Master strategy?

TRY is possible to trade but VERY volatile. So it is a bit of a hot piece of iron. But, yes....TRY does have potential.
ZAR can work when combined with other instruments. Though it is certainly not my favorite trading vehicle.
RUB I love the interest rate and it might work when paired with other instruments but many brokers offer only restricted access (like limited trading hours) and that is not a sexy thing when it comes to swap trading.

To sum it up. Single instrument portfolios can work but they have limitations. But still, they are great to understand the basics about the concept.

Online petersurrey

  • DonbonsPrivateGroup
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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #54 on: November 17, 2019, 03:50:01 PM »
Wow this is LOT more complex than you think...yes you were right zero swaps on the currency spec doesn't actually mean zero which is VERY misleading...with brokers such as AXI and Darwinex using this misleadingly...and others are multiplying usual swaps by ten! SO yes there are opportunities for those with a lot of time and patience to research but my guess is this software seriously reduces timescales...and possible errors..

Online dutchie

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #55 on: November 17, 2019, 07:00:14 PM »
I will give it a try.
Mainly because I love the concept behind it and because I made my own two EA's a couple of years ago which are also working on pos. swaps pairs also.
One EA opens a trade based on an algorythm.
The second EA closes a basket when it reach a specific amount of money
The basket ia a  mix of winning trades and (partly) losing trades.
Swap Master goes a step further then my own concept and therefore worth trying it
There's a saying, success is doing what everyone else isn't doing, and not doing what everyone else is doing.

Offline Foxy_Trader

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #56 on: November 18, 2019, 10:41:50 AM »
I will give it a try too with 1500 USD invested capital.
Will 1500 USD do? I like the idea a lot!

Online petersurrey

  • DonbonsPrivateGroup
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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #57 on: November 18, 2019, 11:28:16 AM »
Further feedback on this for those who are interested - the figures you see published by myfxbook are, to the most part, out of date and inaccurate - so one broker may have a +6 swap rate and another -1 in the other direction BUT you later find that the -1 is actually -11, and so useless for pairing. This is repeated again and again so you need your own customsied version which I guess is what this service offers. The other thing is that some brokers publish their swaps as factor of ten higher than others; so Rakuten and Global Prime may have what you think are amazing swaps, until you discover they are not so amazing when taking this into account and making realistic comparisons. Taking all of this into account I couldn't find a decent swap pair using conventional resources, so if this service can it is worth the fee!

Online dutchie

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #58 on: November 18, 2019, 11:55:43 AM »
Quote
I will be also posting daily updates here: https://forum.forex21.com/
Hi Alexander,
I'm visiting the forum on a daily base, but haven't seen any daily updates so far.
When will you start with this?
There's a saying, success is doing what everyone else isn't doing, and not doing what everyone else is doing.

Offline Forex21

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Re: Swap Master - Market Neutral Arbitrage Trading
« Reply #59 on: November 18, 2019, 02:21:21 PM »
Quote
I will be also posting daily updates here: https://forum.forex21.com/
Hi Alexander,
I'm visiting the forum on a daily base, but haven't seen any daily updates so far.
When will you start with this?

Hello dutchie.

at the moment I am in the process of adding portfolio and broker info the Swap Master group right now. Please check again in a couple of hours.

Thank You!
 :)

 

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