Forex Arbitrage System

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.

Chart Setup

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

Download

Download The Forex Arbitrage System.

Example: AUD/USD H1 Chart

arbitrage-trend-forex-system

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).

Trading Rules

Buy:

  • 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).

Sell:

  • 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).

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