The forex arbitrage system takes advantage of the overall currency trend and exploits the strength & weakness between 2 currencies.
It’s a simple system that can be used by beginners and seasoned traders alike.
Used indicators: arbitrage.mq4, 200 period simple moving average (SMA)
Preferred time frame(s): M15 and above
Trading sessions: Any
Currency pairs: GBP/USD, AUD/USD, EUR/USD, USD/JPY, USD/CHF and EUR/JPY
Example: AUD/USD H1 Chart
The AUDUSD chart shows the arbitrage fx system in action. 3 winners and 1 loss (the trade didn’t reach the 1:2 target – see rules below).
- Price above the 200 SMA (bullish)
- Arbitrage indicator turns orange from green
==> Open buy order and place a stop-loss order below the most recent swing low price (short-term support).
Target level: Exit the buy trade at risk-to-reward 1:2. Alternatively, exit the buy trade when the arbitrage indicator turns green from orange (short-term bearish trend).
- Price below the 200 SMA (bearish)
- Arbitrage indicator turns green from orange
==> Open sell trade and place a stop-loss order above the most recent swing high price (short-term resistance).
Target level: Exit the sell trade at risk-to-reward 1:2. Alternatively, exit the sell trade when the arbitrage indicator turns orange from green (short-term bullish trend).