Arbitrage Triangle EURGBP-EURUSD-GBPUSD by Peter Mueller – EA MetaTrader 5

Key Features:

• Automatic Detection of Arbitrage Opportunities: Utilizes real-time currency pair data to find profitable arbitrage opportunities.
• Dynamic Trade Management: Opens and closes trades based on the calculated arbitrage potential, managing positions actively to optimize profitability.
• Plotting Functionality: Optionally plots the maximum observed price discrepancy for analytical purposes.

Input Parameters:

• Lot_Size_Per_Thousand (default: 0.01): Defines the lot size per $1000 of account balance, scaling the trade size according to account size.
• Total_Commission_for_Lot_Traded (default: 7.0): The total expected commission cost per lot traded, used in arbitrage calculations to ensure profitability post-fees.
• Plot_Max_Difference (default: false): If set to true, the EA will record and print the maximum observed price discrepancy in the Expert tab.

Trading Logic:

1. The EA computes the theoretical cross rates and compares them with the actual market rates of the involved currency pairs (EURUSD, GBPUSD, and EURGBP).
2. It determines whether the discrepancy between the theoretical and actual rates, adjusted for commission and spread costs, presents a viable arbitrage opportunity.
3. If an opportunity is detected, the EA executes trades across the three currencies in a manner that the inherent risk exposure is minimized—essentially locking in a risk-free profit if the market aligns with the arbitrage calculation.
4. Two helper functions, ClosePosSide() and CloseNegSide() , manage the closing of profitable and non-profitable positions respectively, ensuring that the strategy adjusts in real-time to market movements.

This EA serves as a robust tool for exploring arbitrage opportunities in Forex markets, employing a calculated approach to capitalize on price inefficiencies between correlated currency pairs. Ideal for advanced traders looking to augment their trading strategies with arbitrage techniques.

Note: While the backtest results may appear highly profitable, actual market conditions such as execution speed, liquidity, and broker-specific constraints can significantly affect the operational success of arbitrage strategies. It’s recommended to conduct thorough testing in a demo environment before deploying on a live account.