Arbitrage EA Source Code MQ4 — EURUSD/GBPUSD Correlation Strategy, 2.03 Profit Factor

Arbitrage EA trades correlated currency pairs — EURUSD and GBPUSD simultaneously — exploiting short-term divergence between two instruments that historically move together.

614 trades on a live verified account returned 5,470% gain at 3.14% peak drawdown; a separate backtest across the same pair configuration produced a 2.03 profit factor with 61.89% win rate.

Key Benefits

• ✅ Correlation Arbitrage: Simultaneously trades EURUSD and GBPUSD divergence — gains require both pairs to behave as modeled; when correlation breaks, both legs can lose together. Compare EA strategies
• ✅ Position Scaling: Adds up to 5 positions per direction at a 3× lot multiplier — accelerates recovery from open losses but compounds exposure in sustained trends against the basket.
• ✅ Spread Filter: Automatically blocks new entries and position adds when spread exceeds 50 points — execution quality protection built into the logic, not reliant on broker selection alone.
• ✅ Automated Pair Detection: Auto-identifies currency pairs on attach — reduces broker-specific suffix setup errors that silently prevent trades from opening.

Arbitrage EA Source Code MQ4 Performance

Live verified performance is tracked on Myfxbook — account type real USD, leverage 1:1000, platform MetaTrader 4.

The live account opened October 2, 2017 on $10,000 initial deposit and reached $507,008 balance by November 28, 2017 — 5,470% gain at 3.14% peak drawdown over 57 days, with $50,000 withdrawn during the period.

A separate backtest on $4,153 starting capital across EURUSD/GBPUSD produced 614 trades, 2.03 profit factor, 61.89% win rate, and 0.73% maximal drawdown.

The strategy scales into losing positions using a 3× lot multiplier across up to 5 adds — the specific trigger that creates outsized risk is a sustained directional trend in one pair that the correlated pair does not mirror. When EURUSD and GBPUSD decouple in trend (not just temporarily diverge), the basket accumulates correlated directional loss at accelerating lot sizes rather than offsetting it. This is a structural characteristic of the strategy design — it cannot be removed, only sized for.

Setting max_position to 3 instead of 5 reduces the maximum lot escalation depth. The backtest was run at max_position 5; a reduced setting would lower both the recovery speed and the maximum basket exposure in a sustained adverse trend — specific outcome requires demo testing to classify.

The live account ran 57 days in late 2017 — current market conditions, broker spreads, and execution speed are not reflected in this data.

How Arbitrage EA Works

Mechanism: The EA targets short-term price divergence between EURUSD and GBPUSD — two pairs that share GBP and USD exposure and historically revert when they temporarily separate. When divergence exceeds a threshold defined by the ZigZag depth and deviation parameters, the EA opens opposing or aligned positions expecting reversion. Profit is extracted from the spread closing, not from directional prediction.

Signal Trigger: ZigZag indicator (Depth 12, Deviation 5, Backstep 3) identifies divergence points. Big MA (period 50) and Small MA (period 20) crossover can optionally filter closing — moving average close is disabled by default in the tested configuration.

Position Close: Three exit mechanisms operate in parallel: fixed take profit at $0.80 total basket value; small profit close at $0.03 per position after 360 minutes post-open; daily forced close during 23:00–23:59 broker time if small profit threshold is met. Loss-side close triggers when cumulative loss reaches 100% of balance (LP setting) — this is a last-resort account protection, not a routine stop.

Exposure Limits: Maximum 5 positions per basket (configurable); spread filter blocks entries above 50 points; position interval check prevents adds below minimum spacing; broker time restriction blocks new orders on Saturdays (day 5) and at hour 23.

✅ Optimal conditions: Low-spread sessions (London/New York overlap) with EURUSD–GBPUSD correlation intact; ranging or mildly trending markets where divergence reverts within hours.

⚠️ Avoid when: GBP-specific news events (BOE decisions, UK macro surprises) break the EURUSD/GBPUSD correlation — the second pair stops tracking the first and the basket loses its mean-reversion logic. Also avoid during rollover hour (23:00) when the daily close runs.

This EA requires MT4. Need MT5 platform support? Browse MT5 EAs

Recommended Settings

Who Should Use Arbitrage EA Source Code MQ4

• ✅ Platform: Running MetaTrader 4 on a VPS with uninterrupted connectivity — basket positions require continuous monitoring to execute the daily and small-profit close logic.
• ✅ Capital: Deploying $1,000+ with 0.1 lot base size — undercapitalization at this lot size leaves insufficient margin buffer when 5 positions stack at 3× multiplier escalation.
• ✅ Broker: Using an ECN/STP broker where EURUSD and GBPUSD spreads remain below 5 pips in normal conditions — the 50-point spread filter only blocks extreme spikes; chronic wide spreads erode the small-profit close targets.
• ✅ Validation: Prepared to run 90+ days on demo before funding a live account — the live record is from 2017 and current correlation behavior between EURUSD and GBPUSD must be confirmed in your broker’s current environment.

Performance verified with: Real USD account, MT4, 1:1000 leverage, KDFX broker, October–November 2017.

Product Download Package Includes

• ✅ Expert:
  • Arbitrage EA V2.0 Source Code Fixed (.mq4 )
• ✅ Setfiles:
  • EURUSD/GBPUSD.set

The download link will be sent to your email immediately after purchase, along with a video tutorial on how to install it.

Frequently Asked Questions