Arbitrage strategies have long established themselves as a reliable and highly profitable way of earning a low risk, the essence of which is to monitor the timing of differences in prices for the same assets on different exchanges or from different brokers.
But arbitrage is not only a good way to earn money, but also an important part of exchange mechanisms. As you know, on real exchanges, arbitrage traders bear extremely useful load, increasing market liquidity and smoothing prices. If we are talking about Forex, the fear of arbitrage makes brokers invest in the trade infrastructure, improve the quality of the flow of quotations and the speed of communication channels. But most importantly – arbitrageurs force unscrupulous brokers to refuse to manipulate quotations, since any fraud with prices will provide an additional opportunity for arbitrage earnings and will turn against the very same broker.
Brokers of binary options for a long time passed the arbitrage factor, because for trading they usually offer only web terminals that work in the browser. These terminals allow trading only manually, do not allow the use of auto-trade and do not support any interfaces for connecting external advisers and programs. Moreover, even a normal analysis of the price schedule in web terminals is simply impossible. As a result, it is impossible to use any normal trading system on binary options, let alone a complex and high-tech one like arbitration. Knowing this, many binary brokers, feeling completely safe, can manipulate prices with impunity. Indeed, knowing the open positions of all traders, it is enough by the time of expiration of the option to shift the price by only a couple of points to dislodge fortune in their direction and get superprofits. What could be simpler?
However, recently the company Megatrader (megatrader.org) released the world’s first trading robot BinaryTrader for binary options arbitrage. The program can read quotes directly from the screen of the monitor and click the mouse the same way as a person does. All this became possible thanks to the use of the latest image recognition technologies: the neural network built into the program learn to recognize individual characters on the screen, analyzing a small number of already known examples of images. But, despite the use of such complex technologies, it is surprisingly simple to work with the program – it is enough to select the rectangular area of ??the screen with which to read quotes, give the program a few minutes to collect training examples and set up the neural network, and everything is ready for arbitrage.
How does the trading robot work? The program reads and recognizes the quotes of a binary option from the web terminal, and simultaneously receives the quotations of the underlying instrument from the selected leading source, which is suggested to use other trading terminals or direct connections to the providers of stock data. Next, the program compares the quotes received and if it discovers a difference between them sufficient to make a profit, opens the transaction in the web terminal by clicking with the mouse at the specified points in the terminal window.
For more information about the BinaryTrader program, please visit the Megatrader website. There you can also download a demo version of the application, as well as find a lot of useful information about arbitrage trading and trading robots.