Brief Strategies Overview

Based on the core logic SharpTrader strategies can be divided into 3 groups:

Latency arbitrage based

Latency (1-leg)

classic latency arbitrage strategy based on latency difference between fast and slow broker.

Lock CL2

advanced latency arbitrage strategy that uses 2 accounts with opposite opposite positions on each (lock). It enters arbitrate deal by closing position on one accounts and then reopens it on a different account to camouflage arbitrage activity.

Lock

modification of CL2 that opens initial lock by arbitrage signals and than closes both positions after a specified time or at a specified distance from entry price.

Lock CL

modification of CL2 for netted accounts that does not open hedging positions on the same account and close both positions after each 2^nd arbitrage signal.

Lock CL3

modification of CL2 that allows to set 'active' and 'passive' accounts and enter arbitrage deals only on active one.

Bright Trio

latency arbitrage strategy for 3 accounts, it does not open hedging positions on the same account and switches account for hedging position after each arbitrage entry. Provides even better camouflage effect.

Bright Duo

the most sophisticated strategy lock strategy with partial closing. When it detects arbitrage signal it partially closes position and creates up to 3 virtual orders with different trailing parameters depending settings. As closing conditions are met for these virtual orders it closes parts of real position on opposite side. Trading pattern with partial closing looks very similar to swing trading.

Hedge arbitrage based

Classic Hedge

compares 2 different accounts between themselves. Fast feed is notifications used.

Multi Hedge

compares multiple accounts between themselves

Auxiliary

Statistical

based on the historically strong correlation between two financial instruments, for example, WTI and Brent, DE30 and F40, Amazon and Apple. Users can set a period for correlation determination, timeframe, and strong correlation level. The software sells strong and buys weak instruments when their correlation diverges beyond a certain level.

Triangular

Triangular arbitrage is based on a discrepancy between three foreign currencies, for instance, between EURUSD, GBPUSD, and EURGBP. A triangular arbitrage opportunity occurs when the exchange rate of a currency does not match the cross-exchange rate.

L-pouring

developed to move funds between accounts, for instance from problem one to the one where withdrawal is available. It opens 2 hedging orders based on arbitrage signal statistics that allows with good chances to open positions in proper directions in order to move funds to the required account.