I. Arbitrage strategies.
II. DAAS capabilities.
Arbitrage trading is a type of trading with minimal risks, aimed at getting profit using simultaneous buying of assets on one trading floor and its selling on another one or using different instruments on the same trading floor. Arbitrage trading is based on the principle of breakeven at all possible outcomes. In practice, a large number of arbitrage strategies are used, implementing various approaches in such a way as to make a profit as a result. Each forex or crypto arbitrage strategy is based on its principles. There can be as many strategies as you can find vulnerabilities between different trading platforms or between different trading instruments.
There are many arbitrage strategies. Let us list only those used in DAAS (deep arbitrage analysis software).
- One leg (latent arbitrage) – arbitration performed with the help of one broker. Two brokers are used for this type of arbitrage – one with “fast” quotes and one with “slow” quotes. The “fast” one takes quotes ahead of the “slow” one and trades only with one broker, which lags in providing quotes.
- Lock, LockCL, LockCL2, LockCL3 – use of locking positions in trading. In this case, LockCL, LockCL2, and LockCL3 are developed by BJF and have no analogs on the market.
- Hedge (hedge-arbitrage) – is a trading strategy, which is based on the purchase of different assets to minimize possible losses from the price movements. This trading technique reduces the possible profits of individual transactions at the expense of losses on other hedging transactions, but in return, the probability of large losses is minimized. The main function of hedge arbitrage is risk insurance through counterbalancing each other’s trades in different assets. For forex trading, hedging transactions can be opened on the same trading instrument or instruments with a high correlation.
- Triangular (triangular or triangular arbitrage) – in Russian the expression triangular arbitrage is more common. This is a trading strategy, which uses three trading instruments and, accordingly, three currency pairs for trading at Forex. Pairs are selected in such a way that the open positions are insured against each other. In this strategy, it is possible to open large transactions of equal importance in all three currency pairs with minimal risk of losses.
- Statistical (statistical arbitrage). For statistical arbitrage, only those instruments are chosen, which have a certain connection between them, called correlation.
- L-pouring – a strategy developed by BJF and has no analogs on the market.
Bright trio – the strategy is developed by BJF and has no analogs in the market.
DAAS Arbitrage Software Capabilities
As presented in the description, the DAAS deep analysis arbitrage software was created to find and trade arbitrage situations between different markets and platforms. For example, if you have many accounts at different brokers on different platforms (such as MT4, MT5, Ctrader, FIX API, or crypto exchanges such as Binance and Kraken), you can search for arbitrage situations between broker 1 on the MT4 platform and broker 2 on FIX API.
Similarly, one account can be used in many combinations to search for arbitrage situations. If you have one account open with a broker on MT4, one account open on MT5, and a third account open on CTrader, you can find arbitrage situations between the first and second account as well as the first and third accounts. This makes the program unique, and unparalleled in the forex market.
It is also a multi-strategy program, which means that the program includes many strategies that look for arbitrage situations. The program uses not only latent arbitrage and hedge arbitrage but also LockCL, LockCL2, and LockCL3, strategies that were developed by BJF and are unparalleled in the market. Triangle arbitrage and statistical arbitrage are included in the DAAS program. DAAS includes strategies that are used for L-arbitrage, where funds can “flow” from one account to another.
According to the manufacturer, DAAS will continue to be updated with new strategies, and will soon distribute an API that will allow a trader to use connectors programmed for DAAS to trade using the trader’s program.
Minimum system requirements to work correctly. DAAS software should be installed on VPS or a dedicated server. Server location: New York, if your broker places a server in New York, or London if your broker places a server in London. Proximity to your broker’s server is critical for arbitrage strategies – the closer the server is to your broker, the better.
Operating system: Windows Server (OS) 2012, 2016, 2019
Processor cores: 2 or higher
memory capacity: 4GB or more RAM
Free space: 40 GB of free space
The installation of the DAAS software is not difficult, but the antivirus I had installed was fighting the program I was installing. Only after adding it to exceptions, you can start using it. Hopefully, in the future the authors of the program will finalize this point, what would antivirus miss DAAS activity without unnecessary complaints.
After installing and launching the program a window appears, where you can add your trading accounts on platforms MT4, MT5, cTrader, FIX API, and crypto exchange (crypto exchange). Also on the right side, you can add trading strategies, which will be implemented in trading. Latency Arbitrage, Lock Arbitrage, LockCL Arbitrage, LockCL2 Arbitrage, LockCL3 Arbitrage (locking arbitrage on different strategies), Triangular Arbitrage, Hedge Arbitrage, Statistical Arbitrage, L-pouring, and the Bright trio are available for adding.
The program’s interface is in English and two Asian languages, based on hieroglyphics. This is not enough for the software to win total leadership in the arbitrage software market. I would like to see the interface in all commonly used languages.
DAAS (Deep-Analysis Arbitrage Software) from BJF Trading group considered in the review is one of the leaders among arbitration software. All basic known arbitration strategies are used in DAAS, as well as the strategies developed by BJF that have no analogs on the market.
Among the disadvantages – are no finalized interaction with anti-viruses, and a small selection of languages used in the interface of the software.
The advantages of DAAS significantly exceed the disadvantages found in the process of software for deep analysis of arbitrage.
Profitability - 9.6/10
Safety of use - 9.8/10
Execution speed - 9.7/10
Сamouflage options - 9.3/10
Usability - 9.2/10
Customer support - 9.6/10
Multifunctionality - 10/10