Bully Pepperstone ARb

[skoda2008]

themaxx,

The possible drawdown comes from widening of spreads on the trades you have open. While you are almost perfectly hedged (Near enough not to worry about), black swan / news events can cause the spreads to widen dramatically - you need to keep enough margin aside to allow for such events. Also remember to adjust position sizes over time if they are left open for a while, otherwise you wont be perfectly hedged any more.

Despite Bully Pepperstone moving the decimal place on the SEKJPY swaps there are still similar opportunities out there - they are just not quite as lucrative - it's up to you to find them.

TheLocustFund,

If there are any problems retrieving your money, you may want to look into the services of the Financial Services Onbudsman in Australia. They are there to make sure that banks, brokers, and anyone offering finance products plays by the rules. Forget ASIC, they are just there to build their empire and collect licensing fees.

[themaxx]

The possible drawdown comes from widening of spreads on the trades you have open. While you are almost perfectly hedged (Near enough not to worry about), black swan / news events can cause the spreads to widen dramatically - you need to keep enough margin aside to allow for such events. Also remember to adjust position sizes over time if they are left open for a while, otherwise you wont be perfectly hedged any more.

Thanks for the explanation. It sounds like it's more difficult than its worth - I'd need an opening script and a spreadsheet to work out how to adjust - too difficult for me with my limited math skills.

[skoda2008]

Thanks for the explanation. It sounds like it's more difficult than its worth - I'd need an opening script and a spreadsheet to work out how to adjust - too difficult for me with my limited math skills.

Well, without giving too much away, it may be well worth learning. Pretty much as close to risk free trading as you can get.

[skoda2008]

We had also complained to ASIC but nothing has been actioned.

Doesn't surprise me at all, it always amuses me how brokers make a big deal about being regulated by ASIC. All it basically means is they have paid their licensing fee! It still doesn't mean your money is any safer, particularly if the company becomes insolvent. Canada seems to have good regulations on that.

[Jemook]

Guys. I was blown away by the eagerness for traders to help and who were interested, however, with some great people there were some down right rotten people. I will not go into names and point fingers but some of the things that were said to me for not offering up my system were mind-boggling. It takes a lot to offend me and the things that were said did not offend me but really just made me stop and think and second guess generosity.

If there is a Skype chat with a large chunk of traders here I will gladly join and share some other arbitrage opportunities with you.

Also, I was contacted by an employee at Bully Pepperstone and they are threatening criminal action against me. Most of the accounts that I traded have been disabled. One was funded at 216k is currently at 405k, another 103 is 180k. I will keep you all posted and let you know if Bully Pepperstone pays. FWIW, they did make the change to the swap payments today and that arb is gone.

Good luck and trade well.

Sometime's its best to keep these secrets to yourself as Gary said I'm also not surprised Bully Pepperstone shut it down but I also don't see how they can chase after you - it's not like you did anything illegal as far as I know.

In regards to private PMs from members abusing you - if you feel that forum members were way out of line please PM me the transcript and if it's abusive enough the mods can decide to act upon it.

Jeremy

[SteveHopwood]

In regards to private PMs from members abusing you - if you feel that forum members were way out of line please PM me the transcript and if it's abusive enough the mods can decide to act upon it.

I second, third, fourth and fifth that. Members are not allowed to send abuse via pm, and any who do receive an instant ban the moment it is brought to the mod's attention. One of the reasons this forum is the happy place it is, is because the mods do not allow threatening, bullying or abusive behaviour.

[garyfritz]

Good point, and I should have said so myself. I was so shocked by Bully Pepperstone's legal bullying that I didn't think about the local misbehavior. Not cool, and not allowed here.

[SteveHopwood]

Good point, and I should have said so myself. I was so shocked by Bully Bully Pepperstone's legal bullying that I didn't think about the local misbehavior. Not cool, and not allowed here.

I have added a new word to the word auto-changer here re 'P_epperstone'. They will henceforth be known as Bully Pepperstone. I hope this explains my frequent references to 'Bully Bully Pepperstone' in my latest 'heads-up' (work it out )

So, any other cretin from Bully Pepperstone want to mix it here with me in my own forum?

[FX Juju]

@TheMaxx
If you wanna know more about swap arbitrage, you can find some explanations here:
http://forum.vamist.ro/blog/2/entry-10-swap-arbitrage/
There are also some nice pieces of code that detect "swap holes" in broker datafeed, automatically calculate the most profitable hedge and open orders...
I have to say that, on my side, I had never heard about swap arb before TheLocustFund kindly shared this trick with us... Very impressive to say the least (I could try it once on demo before things went wrong)... As I understand it, there is no risk.. except that your broker realizes his own mistake and refuse to pay your gain...

Besides, that threat from Bully Pepperstone to take legal action is infuriating and ridiculous at the same time... I doubt they can do that... To me, it's like buying a product with an erroneous price tag and being prosecuted for that...Just doesn't make sense... Even better, TheLocustFund should be the one to file a complaint for Bully Pepperstone not to honor their own commitment (anyone can find their swap rates on their website!!).. The mistake is definitely on the Bully Pepperstone's side!! Anyway, I hope TheLocustFund that you will get back your capital AND your gains... Give us a head up.. Good luck!

[FX Juju]

On this thread too some explanations about swap arb...
http://www.forexfactory.com/showthread.php?t=11105