This is a PZ Latency Arbitrage EA Review. It is an EA is a forex robot developed by Arthur, a programmer. Consequently, as the name suggests, this EA uses arbitrage strategy. This EA is part of group of expert advisors and forex indicators sold by a Company known as Point Zero Trading.
In this review, we concentrate on the PZ Arbitrage EA. We perform a comprehensive performance analysis, examine the strategy and see what the community says about this bot? At the tail end, we tell you if this robot is a good choice.
What is PZ Latency Arbitrage EA?
Arthur describes this forex robot as a high-frequency strategy that allows traders to make instant profits. It acts fast on opportunities presented by inefficiencies between two brokers. Typical trades include pitting two brokers against each other, one slow and the other advanced. It relies on knowing the future price on the market and using that against the slow broker. Apparently, this whole process takes less than a second.
The website also describes this EA as a minimal risk trading strategy. It allows traders to make gains in trading with no open currency exposure. It takes advantages of slow brokers, liquidity and network challenges faced by brokers.
Furthermore, when there are price discrepancies between brokers, big enough to cover both spreads and some margin on top, opposite trades are opened until both price quotes match again. This methodology involves connecting several MetaTrader platforms while utilizing a single EA.
Arthur states that it is common to find a difference of 1-2 pips and a time difference of 1-5 seconds between two brokers. Note that Latency Arbitrage EA requires super-fast internet. More so, it only trades when the price difference is likely to cover spreads, slippage and commissions. At the time of publishing this post, the latest version for this EA is 3.6. It works on both the MT4 and MT5 platforms.
Notable features include:
- It implements two trading modes: Classic or Trailing Stop
- The EA can trade 32 simultaneous pairs or symbols
- It implements a customizable trading threshold
- It adapts to slippage and commissions
- The EA places safety SL and TP orders
- The trading activity is NFA-FIFO Compliant
Arthur prices this EA at $499. We consider this a bit expensive.
- MT4 EA file
- Free software updates
- Lifetime technical support
PZ Latency Arbitrage EA: Performance Analysis
The EA has provided screenshot of their trading performances. However, the screenshot are not linked to the real accounts on Myfxbook. This is a big concern.
Gains for this EA over the period of trade stands at 11,339%. Monthly growth averaged 22,74% which is outstanding. However, drawdown is 75% which we consider dangerous. However, these results only ran for several months and ceased updating in 2015.
In our quest to find a real live account, we searched the internet and found a demo account. The leverage for this account was 1:400 which is twice the one shown by Arthur on the live account. The drawdown is also far less at 19%, a complete opposite from the screenshot provided on the website.
However, this account is no longer being updated as well.
We did not find any customer reviews specific to Latency Arbitrage EA. However, there are a ton of reviews for Point Zero Trading.
The reviews are pretty solid. Users rate Point Zero Trading highly at 4 stars. However, we cannot assume that the reviews also apply for this EA since it is sold singly.
We also chanced on Arthurs engagement with clients. This is all on Facebook and engagement seemed to have happened over time which is a good sign.
Our Final Thoughts
Arthur seems to be doing a great job. We are extremely encouraged with the customer engagement. Arthur seems to be responding to clients seeking clarity from him. However, we are disappointed with the lack of a real money account updates and the high percentage drawdown.
What we can advise our readers, those experienced in forex trading can go ahead and try this out. Ensure to get brokers on opposite axis to reap the benefits.