Yes, everything depends on the Broker (trading costs and execution):
Oanda gives : EURJPY-2.3 pip, USDJPY-1.8 pip, EURUSD, 1.5 pip
EFX Group/MBtrading: EURJPY-2pip, USDJPY-1 pip, EURUSD, 1 pip + commission $5 per $10000 Traded.
I don not know if you can trade not round lotsizes with Currenex or HotspotFXi or IDealPro. That would be a good deal.

Automation is possible with any of them.

very interesting concept, if somone can make indicator for mt4 calculating this FPI it would be nice

1.1840 (EUR/USD) * 1.3145 (USD/CHF) * (1 / 1.5565) (1 / (EUR/CHF)) = 0.999915194

Ths was upload on kreslik forum today.

Attached Files

FPI-3 Symbol v1.0.mq4 (5.0 KB, 255 views)

Hmm.. I wonder if this is useful for an MT4 platform. A quote from the forum:

Now, does THAT sound like ANY MT4 broker that you know of??

If so, please let me know!

Has anyone had success with this? I spent a few hours looking at the forum posts, and all kidding aside, really do wonder if this is possible with MT4. Has anyone worked out how to set the proper lot sizes for the ring?

Cheers,
CS

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Cubesteak

You´re right. In fact this is worst for Mt4 real account user. This metthod needs your broker let you operate with units in order to make the perfect hedge and MT4 doesn´t let you do that.

However i use MT4 only for TA and trade with Oanda. that´s why i think will work for me.

The process of converting one currency to another, converting it again to a third currency and, finally, converting it back to the original currency within a short time span. This opportunity for riskless profit arises when the currency's exchange rates do not exactly match up. Triangular arbitrage opportunities do not happen very often and when they do, they only last for a matter of seconds. Traders that take advantage of this type of arbitrage opportunity usually have advanced computer equipment and/or programs to automate the process.

As an example, suppose you have $1 million and you are provided with the following exchange rates: EUR/USD = 0.8631, EUR/GBP = 1.4600 and USD/GBP = 1.6939.

With these exchange rates there is an arbitrage opportunity:

Sell dollars for euros: $1 million x 0.8631 = 863,100 euros
Sell euros for pounds: 863,100/1.4600 = 591,164.40 pounds
Sell pounds for dollars: 591,164.40 x 1.6939 = $1,001,373 dollars

$1,001,373 - $1,000,000 = $1,373

From these transactions, you would receive an arbitrage profit of $1,373 (assuming no transaction costs or taxes).

Absolutely not, add in the spread and this will not work whatsoever.

There is a whole thread devoted to this subject of Triangular Arbitrage, or Fractional Price Inefficiency here:

http://kreslik.com/forums/viewtopic.php?t=307

there is no gaurenteed method that always works but trying few out of box ways to trade wont bring any harm

Very interesting.... so did you test it ? what kind of EA for that case ? it' kind of SWAFT.... Keep informing us the application of your method ...

GBU
Nyoman Ramayanta