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I have a dedicated server in Chicago, which has ping speed of 1ms to CTS T4 server. However, I don't know how long it takes for order to travel from CTS T4 server to CME Aurora. That's why Aurora hosting with direct market access seems to be the only sure way to break that 1 ms barrier which really feels more like 50 ms barrier when market is in extreme rush.
The one thing I understand about speed when starting out is that you can just assume that you will be the slowest one among all the people/machines running similar class of strategy. Those people who been in this market for a long time have had enough profit to upgrade to Aurora with direct market access long ago.
So the decision here isn't really speed because you don't want to pay to break the sub-1ms barrier. The decision then becomes cost. Who will be the least costly among the 1ms combinations for you to start out.
Why do you care about latency anyway? Do you want to be fast for order submission or cancellation? Do you care about latency in general, or do you care about latency only when the market is in a rush. Those two are actually different.
Low latency gives more certainty so when modelling I will find more trade opportunities during a rush.
Why does your trade seem like 50ms? Latency to cts does not increase during events, it is internal to cts, either cts being slow to place your order, or it is market micro structure at the time (not sure if you mean limit or market orders)
so choosing your provider like Rithmic or CTS can be more important than your first hop. Unfortunately measuring how your provider handles events is tedius and empirical work.
Not sure if belongs here, but does Rithmic API provide MDP 3.0 raw from exchange? I would prefer this as it includes orders and i can build my order book accurately.
on another note i tried about 10 VPS providers, and i managed to find a $5/month linux server that is 0.460ms (0.23ms one way) RTT from Rithmic. fantastic! I might tell some people in private if they are interested.
I would love to know which VPS providers you have tried / tested and get your take on which ones you liked.
I am in the process of setting up something that may be similar and would love to pick your brain.
Do you happen to know if using Rithmic Diamond API gives noticeable improvement? They claim 250 microseconds round trips on their website.
Did anybody experience that? Of course it comes with the price, around 1000$ a month.
LukaPoga, you said using VPS as opposed to dedicated is slower. May I ask how much slower?
Additionally, do you see value in investing in 10GB port? Thank you.
using a VPS is wrought with uncontrollable lags, the cpu has jitter. eg. a Thread.Sleep(1) wont sleep 1ms all the time. sometimes it will sleep for 19ms lol.
i havent been able to get a dedicated server with Rithmic yet to test it. even though my VPS RTT ping was as low as 350us, the tick delay was averaging 3-4ms. with 97% ticks received within <30ms. so it wouldnt make much difference if you are in the datacenter or in central chicago with this system. Rithmic have another system (not Diamond) that they set up for dedicated servers and that could be much faster but I havent tried it.
There is another company Rival Systems. not very well known or talked about online, but they market 12 microseconds. that could be an alternative if you have capital.
