BrightDuo Arbitrage

Bright Duo strategy is a sophisticated modification of lock strategy that provides camouflage arbitrage flow.

How it works:

When arbitrage signal is detected it partially closes position and creates up to 3 virtual orders with different trailing parameters depending on how it is set. After closing conditions are met for these virtual orders it partially closes corresponding parts of the real order on opposite side. Trading pattern with partial closing looks very different from usual arbitrage patterns.

General idea of the strategy:

BrightDuo strategy works on two accounts with the same or different brokers.

BrightDuo strategy never hedges (locks) orders on the same trading instrument in one account.

Orders are opened on a calm market, not by arbitrage signals

BrightDuo strategy allows you to have different profit levels with an adjustable order size for each level, which fully simulates trading through support and resistance levels with complex money management, or a similar strategy.

Important!!! Opening of the initial lock is performed manually or by enabling “Reopen lock after X seconds” option. It will not open trades without initial lock.

We do not recommend to use it on the same account.

Bright Duo arbitrage strategy Instruments and orders Tab:

Description of the parameters:

Enabled – enables or disables trading on a selected instrument.

Name – symbol name on a fast feed.

Initial lot – lot for initial lock.

Trading lot – volume that is closed as part of the initial lot on arbitrage entry

Lot multiplier 1 – used for lots scaling on side 1. For example, if you are using mt4 and mt5 brokers, for FX pairs it should be “1”. But if you are using FIX connections (CTrader for example), then you need to put multiplier “100000” on FIX side, so for 1 lot Ctrader will trade 100000 units.

Lot multiplier 2 – used for lots scaling on side 2

Decimals – number of decimal places in symbol quotes.

Trail params – provides access to Order management options window

Slippage 1 – max allowed deviation from the price order is sent at for side 1. If price goes beyond allowed deviation order gets reject or requote. Works only for instant execution accounts and limit orders on FIX API accounts. For market execution accounts it has no effect.

Slippage 2 – max allowed deviation from the price order is sent at for side 2.

Commissions 1 – commissions for side 1. Should be set if broker charges commissions. Commissions are calculated per million (10 standard lots) so if broker charges $7 per standard lot they should be set to 70. Parameter has no effect on trading, it affects only on profit display.

Commissions 2 – commissions for side 2.

Initial direction – allows to set initial directions for lock orders. If selected 'Buy on 1' or 'Sell on 1' it will open trades only by signals in allowed directions. 'Neutral' allows to open trades in any direction.

Diff calculation method – allows to switch between several calculation modes of arbitrage difference:

Standard (univeral mode, suitable for most setups)

BuyDiff = FastAsk - SlowAsk

SellDiff = SlowBid - FastBid

SpreadCorrected (recommened when spreads on a slow broker are lower than on a fast feed)

BuyDiff = (FastBid - SlowAsk)

SellDiff = (SlowBid – FastAsk)

Reversed (experimental mode)

BuyDiff = FastBid - SlowBid

SellDiff = SlowAsk – FastAsk

Include spread – allows to include or exclude spreads from difference calculation. We recommend to keep this option checked.

Diff to open 1– difference between prices on a slow broker and a fast feed for opening arbitrage deal on side 1.

Diff to open 2– difference between prices on a slow broker and a fast feed for opening arbitrage deal on side 2.

Min Spread Slow 1 – minimal allowed spread for a slow broker 1. If actual spread is lower than Min spread slow 1 value, arbitrage signals are ignored.

Min Spread Slow 2 – minimal allowed spread for a slow broker 2. If actual spread is lower than Min spread slow 2 value, arbitrage signals are ignored.

Max Spread Slow 1 – maximum allowed spread for slow broker 1. If actual spread is higher than Max spread slow value, arbitrage signals are ignored.

Max Spread Slow 2 – maximum allowed spread for slow broker 2. If actual spread is higher than Max spread slow value, arbitrage signals are ignored.

Max Spread Fast – maximum allowed spread for a fast feed. If actual spread is higher than Max spread fast value, arbitrage signals are ignored.

Bid offset 1 – constant distance between bid on a fast and bid on a slow 1 broker (in points).

Bid offset 2 – constant distance between bid on a fast and bid on a slow 2 broker (in points).

Ask offset 1– constant distance between ask on a fast and ask on a slow 1 broker (in points).

Ask offset 2– constant distance between ask on a fast and ask on a slow 2 broker (in points).

Offset Calc – allows to enable automatic offset calculation.

Comment – internal order identifier. If several instances of the same instrument are used in the strategy, comments for each instance should be different.

Diff limit – maximum allowed difference for opening arbitrage trade. If actual difference it higher, signal is ignored.

Statistical parameters (can't be modified):

Curr Diff 2 – current buy difference between a fast feed and a slow broker 1.

Curr Diff 2 – current sell difference between a fast feed and a slow broker 2.

Max Diff 1 – maximum buy difference between a fast feed and a slow broker 1 detected since the last software restart or the last Max diff values reset.

Max Diff 2 – maximum sell difference between a fast feed and a slow broker 2 detected since the last software restart or the last Max diff values reset.

Curr Spread Slow 1– current spread on a slow broker 1 (in points)

Curr Spread Slow 2– current spread on a slow broker 2 (in points)

Curr Spread Fast – current spread on a fast broker (in points)

Order management window:

Level 1/2/3 trailing options

Enabled – allows to enable or disable trailing level.

Close % - percent of trading lot to be closed on each level

Stoploss – hidden stoploss for an arbitrage trade.

Takeprofit – hidden takeprofit for an arbitrage trade.

Min profit – starting point for trailing.

Pips for Min Profit – when set Min profit parameter comes into effect after price reaches Pips for Min profit value. Used for brokers with wide stop/freeze levels.

Trailing step– distance arbitrage trade is trailed at.

Trail units – allows to switch trailing units between points and percents.

Order lifetime – maximum arbitrage deal duration (expressed in seconds)

Spread SL – allows to calculate SL based on spread. When Spread SL is enabled actual SL is calculated as a current spread multiplied by S/L value.

Min lot 1 – minimal lot on broker 1

Min lot 2 – minimal lot on broker 2

Lot step 1 – minimal lot step on broker 1

Lot step 2 – minimal lot step on broker 2

Save as template – allows to save current parameters as template.

Load template – allows to load one of the available templates.