In this post I will be reviewing the Arbitron automated forex trading system from LeapFX that runs in the ever popular MetaTrader 4 trading platform which is free to download and use on Windows and MAC computers. MetaTrader is also available for mobile devices but you will need the desktop platform to run forex robots such as Arbitron.
In order to use this forex robot, you will need a trading account with a forex broker. With so many brokers to choose from, I have conveniently compiled a list of my best forex brokers to help you quickly and easily choose a broker that meets your needs.
Arbitron Trading Strategy
As the name slightly implies, Arbitron is a forex robot that is developed around the idea of arbitrage trading. I have always found arbitrage trading to be better in theory than it is in practice due to a multitude of varying factors, primarily broker spreads, commissions and execution speeds. Such trading systems can perform in back tests or on demo accounts but tend to fail miserably when faced with real live trading conditions. Thus, the choice of trading broker can have a huge impact on results when using an arbitrage trading strategy.
Latency arbitrage trading is a type of trading where the trader uses a special software to compare a “fast price feed” with a “slow price feed” broker. When the price on the fast feed is higher than the price on a slow broker it creates a buy opportunity. When the price on the fast feed is lower than the price on a slow broker it creates a sell opportunity. Arbitrage usually requires no analysis, prediction or guessing, we it just needs 2 differing broker feeds to take advantage of.
Where arbitrage usually fails is the technology not being efficient enough to take advantages of these minor discrepancies. Thus, a forex robot such as this is unlikely to bridge the gap that not even some of the most powerful institutions can.
That being said, the system is compact and simple – providing information to help you understand what’s going on with the results, speeds, and profit potential. The price feeder connects to the Arbitron trading system that is running on your MetaTrader 4 and feeds it the proper data automatically – while the system trades for you.
Arbitron Back Testing
There are no back tests on the Arbitron forex robot website, most likely due to the fact that MetaTrader 4 does not have the built-in capabilities to simultaneously run back tests on data from different brokers.
Arbitron Live Results
To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.
Arbitron is likely to suffer due to the fact that real trading conditions cannot replicate those conditions available when back testing in hindsight, especially for a system that relies so heavily on speed and minor difference between broker feeds.
Truth be told, if you do manage to find 2 brokers with such a difference that you do start managing to successfully trade using arbitrage, it is highly likely they will not take too kindly to it and either warn you or shut your account down without notice.
That being said, full support and instructions are included, along with a money back guarantee.