1 LEG & 2 LEG LOCK
Latency & hedge arbitrage
STRATEGY: 1 LEG — LATENCY ARBITRAGE
Detects when the Fast Feed price moves ahead of the Broker price. Opens a trade on the slower broker in the direction of the gap, and closes it when the broker price catches up.
| SETTING | WHAT IT DOES |
|---|---|
Gap | Minimum price difference between feeds to trigger a trade. Higher values mean fewer but more reliable entries |
Shift | Adjusts the entry price by a small offset to compensate for execution delay |
Stop Loss | How far the price can move against you before the trade is closed at a loss |
Take Profit | How far the price needs to move in your favor before closing at a profit |
Max Spread | Maximum allowed broker spread. Prevents opening trades when spreads are unusually wide |
Trade Pause | Waiting time in seconds between trades. Prevents opening too many trades in rapid succession |
STRATEGY: 2 LEG LOCK — HEDGE ARBITRAGE
When a gap is detected, opens both a BUY and a SELL at the same time. One will be winning, the other losing. The loser is closed quickly, and a trailing stop is applied to the winner to lock in profit.
| SETTING | WHAT IT DOES |
|---|---|
Gap | Minimum price difference to trigger the simultaneous hedge entry |
Trail Start | How much profit the winning leg must reach before trailing stop activates |
Trail Dist | How far behind the maximum profit the trailing stop follows |
Stop Loss | Maximum loss allowed on each individual leg before forced closure |
Requires hedge-enabled broker. NOT supported on Rithmic or FIFO brokers.
Key Features
Ultra-Low Latency
Executes trades in milliseconds when price gaps are detected between fast feed and broker.
Profit Lock Mechanism
2 Leg Lock hedges both directions and trails the winner to secure gains.
Risk Management
Built-in stop loss and spread filters protect against adverse market conditions.
Understanding the 2-Leg Lock Strategy
Most traders think arbitrage is complicated. It's not.
A 2-Leg Lock exploits price differences between two brokers:
- Leg 1: BUY on Fast Feed (cheap price)
- Leg 2: SELL on Slow Broker (expensive price)
When the slow broker catches up → locked profit
Key Components:
- Fast institutional feed (LMAX)
- Slow retail broker (delayed)
- Sub-millisecond execution
The Formula:
Profit = Price Difference - Spread - Commission - Slippage
This is NOT hedging. This is pure arbitrage.
Ready to Trade 1 Leg & 2 Leg Lock?
Join our Telegram community to get access to Horizon HFT and start running latency and hedge arbitrage strategies on your prop firm or live account.
Join Telegram