FREE Arbitrage Consulting for your NEXT trade

ARBinstruktor

Junior member
20 2
Hello!

I have been arbing the broker community for years now.
As I am running the maximum number of accounts I could get, and I still have a lot of spare time, I have decided to share my knowledge
with a small and elite circle of serious traders.

I am sorry, but what I am able to share has quite some value and could never be compensated by a sunday day trader, who hopes to get rich by comparing averages, looking for break outs or swinging his trades. It also does not fit for some kind of asset management, as it is highly confidential and even personal.

My main business is ARBITRAGE, arbitrage in and of time. I take positions, which match themselves in risk (some brokers even acknowledge this by margining only one leg of my arbs) and converge in time to a single price.

Below you find a current example. During the last 15 days Silver traded on spot between 17,471 (May 20) and 17,903 (Jun 3), while the July contract was priced at 18,010 (May 20) and 18,250 (Jun 3). On May 20 the implied carry yield was 3,09%, now it is around 1,94%.
At maturity it will be 0%!

You could run the ARBITRAGE by going long in Silver with your swap-free broker and by shorting the July futures contract with another broker. Your gross return was 309 basispoints 2 weeks ago, and is currently 194 basispoints. Bringing 500 basispoints as margin to each of your brokers, your yield on margin/investment will be 19,4% for a period shorter than a month!!!!

ALTERNATIVELY you could look for a broker that offers the futures AND spot contract. The financing rate (swap, roll, etc) of the spot-position should be less than 232,8% pa (=12x19,4%). In such case your margin requirement almost diminishes completely, as both legs of your arb are within one account.

In my best accounts I only have to bring 1% margin on one of the arb legs. I have taken as many and as large positions I can take for my risk parameters. (Anybody raising the question, why I consider risk in ARBs, distincts himself not to be apted for the circle. But just for documentation; as we trade under uncertainty (refer to Keynes) we always have to keep at least our risk books as clean as possible).

Long story, short message. I have taken my positions, and so I can share them with you. Not as advice , but as reference.

Anybody, who is seriously interested in trading and documents his interest by (a) sizeable account(s) can contact me.

Selection criteria are all your already existing accounts (broker, balance, status).

Minimum balance should be 50.000,-GBP. If there are several accounts, at least one account should have this balance.
You do not have to be an elective professional trader, but it would help quite a bit.
Having access to spread bets increases you chances, as well. Just consider, the current Silver-ARB could be achieved TAX-FREE with spread bets.

As soon as I have made the list, every member will be contacted. We will check together, what kind of trades are possible within the current setting of brokers. NB, I do not recommend any broker! Everybody has to choose his own broker(s), who he will trust.

After analysing the broker potential, we may open a demo account, to which i have acccess for placing instructing demo positions.

You will define a negative-list of trades you are generally not interested in.

As soon as I have a proposal, that surpasses your negative-list, I will contact you. The idea is, that you take a position, that generates
at least 1.000,- GBP in net profits.

If you are able to realize the profit target, you pay me 50% of your profit, at least 500,- GBP, and I will inform you about the next opportunity as soon as it arises. In case you are not able to realize the projected profit (mostly due to broker intervention), I may still consider you for the next round.

It is a simple pay after you win mechanic. You get this SILVER-ARB here for free and you will get any further trade for free, as long as you have paid for your winning trades before.

My intention is to take up to 10 members for the start. Seriousness and confidentiality are prerequisites.

The getting acquainted and tutoring period will be quite demanding,
trading will be quite smooth, expecially if you bring some bases to built on. Knowledge of statistics and mathematics will certainly help.

So send me your applications;

containing your detailed trading experience,
the brokers you use,
the account sizes,
your preferred instruments,
a short description of your greatest loss,
a short description of your greatest profit,
and
your contact details




SILVER (Jul) ARB



Silver Basis 030620 b.png



Silver Carry Yield 030620 b.png
 

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