ArbMaker + Interactive Brokers TWS is here

Posted by on Jan 2, 2013 in ArbMaker News! | 8 Comments

TWS3 for newsletterArbMaker continues to develop its cointegration tool-set for traders seeking to develop strategies that provide inherent downside protection through hedging whilst simultaneously profiting from relative mis-pricings between instruments.

No other commercial software covers the statistical process of cointegration as comprehensively in pursuit of this goal.

In its latest incarnation, now available to trial, purchase and lease, version 2.2.3 of ArbMaker adds the following new functionality and support:

    • Semi and fully automatic equity trading via a bridge to the Interactive Brokers (IB) TWS platform
    • Dynamic filtering of portfolio items to ensure that only pairs meeting user-defined statistical profiles can enter trades
    • Improved, user-definable rolling Z-score window option for calculating pair spreads
    • An updated user interface with a consolidated layout of four headings: ‘Operations’, ‘Feeds’, ‘Parameters’ and ‘Utilities’
    • Expanded in-line documentation with new or revised sections for the IB bridge, the dynamic filtering feature, the new rolling Z, the PACF chart as well as greater detail about adding customized symbols and fixed & time adaptive betas (also available as a .pdf here)

We also now include more features as standard with no price increase; and in January are including our time-adaptive beta tool free of charge with all ArbMakerFX orders.

If you are not yet a client please trial ArbMaker. We hope to win you over to our growing customer list of experienced retail clients, independent proprietary traders and boutique trading firms.

Happy New Year to All – and particularly to our clients who have supported us from the early days!


  1. Tom Carlson
    February 7, 2013

    quick question – does your bridge to IB submit orders as combo orders? Thanks.

    • Admin
      February 8, 2013

      Hi. No it does not because the IB gurantee to fill both sides does not apply where only equities are paired up. So we have coded in several safeguards to avoid orphan transactions – page 110 of our documentation covers some of these.

      • Tom Carlson
        February 8, 2013

        Thanks. Unfortunately, that’s a must have for me. I have used the combo trader feature (the LMT + MKT type order) for thousands of trades and have had great success (I can’t recall having both sides not fill). If you ever add that capability for combo submission as an option, let me know – I would definitely be interested in your software.

        • Tom Carlson
          February 8, 2013

          The combo trade has the advantage of simultaneously sending both trades to IB and having the execution reside on their server instead of on the client software. And won’t execute if there aren’t short sales available on one of the sides.

  2. Tom Carlson
    February 9, 2013

    Another question – does your interface monitor total position size in relation to the room left in the portfolio in determining when to send trades? Thanks again.

    • Admin
      February 11, 2013

      Hi. No, it doesn’t. But this has been requested by clients and we will build in a safeguard that works in a similar way tp the TWS ‘buying power’ guage.

  3. MIke
    March 2, 2013

    For such pairs trading to work don;t you need to be co located with the exchange?
    Is there a legging rrisk?
    Also does this work on Futures spread ( non exchange recognised spreads, Synthetic spreads)

    • Admin
      March 3, 2013

      Hello Mahesh.

      1) Ours is not high-frequency software so co-location is not a pre-requisite.
      2) There may be legging risk if trading pairs on exchanges with different business hours.
      3) We are working on implementing futures in the next couple of months.


      The ArbMaker Team


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