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Arbitrage (from the French Arbitrage – a fair decision) in economics – several logically related transactions aimed at extracting profit from the difference in prices for the same or related assets.

The MA Arbitrage indicator shows the price divergence of the two
correlating tools. The indicator is installed on the window of one
For example, let’s say EURUSD, and the indicator parameters are set to
the name of the second instrument, let’s say Ins2 = GBPUSD.

The period parameter is configurable.

Application: If the indicator value has significantly decreased, it
means that the ratio of the price of the current instrument in relation to the price
the second instrument is significantly behind the average value and this one
the tool should be purchased. At the same time, you should sell
instrument No. 2 for the same amount. The price is very likely to “catch up” with the usual one
the level, or the price of instrument #2 will drop to this level. Closure
two transactions must be made simultaneously.

The Var parameter is responsible for the line method: 0-the indicator shows the MA of the price difference, 1-the ratio of the difference to the price Ins1.

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