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Tell me about internet speed

  #8 (permalink)

Brisbane, Australia
 
 
Posts: 95 since Mar 2018
Thanks: 72 given, 26 received


bobwest View Post
My take is that, for most traders, the issue of timelag (latency) from the trader's PC to the Chicago server in this setup is usually not going to be that important. (This assumes that we're not talking about aspiring high frequency traders, just regular retail discretionary trading. Reason? The latency between your your eyes, brain, and your hand moving the mouse and clicking it will be much, much higher, and will measure in full seconds -- or perhaps in minutes -- not milliseconds. After the click, a few more ms's will not matter. ) I think the same case could be made about most internet latency situations: unless it's enormous and unreliable, probably it won't truly matter that much, compared to the decision-time taken by the traders themselves.

The thing that has an appeal with the remote server setup is the total independence from connectivity issues (and local power issues, PC issues, etc.) once the trade is entered, and all the more so if the entries are decided-on ahead of time and orders are already entered (with stops/targets to be handled by ATM or some other automated method.)

This does not mean that traders need a remote server solution; most do not have one, and probably are OK. The thing is to have a way to insulate yourself from internet or PC downtime while you're in a trade. Your stops and targets will generally be either on your broker's server or already on the exchange's (check with your broker on this), so probably your main issue would be the minuscule timelag between the initial trade entry and your ATM setting your stop/target. Putting the whole trading platform on a remote server eliminates this, effectively speaking.

Bob.


What then should I look into? do I at least need a certain mbps speed or is it all totally irrelevant and I should just start trading? I can download 12.7mbps,

I ran a test and apparently I have 320ms of latency to the Sydney server, quite a bit more than the 10ms CQG stated but is this due to my internet service provider?

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