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Will leasing fast server in Chicago give me better fills?


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Will leasing fast server in Chicago give me better fills?

  #1 (permalink)
MadManmos
London UK
 
Posts: 20 since Jan 2011
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Hi, im coming to Big Mike forum again for some advice. It seems this is the only place one get proper solutions. I have been trading with guys that trades out of the US. Im based in UK. Im trading the fast moving Crude oil. I get slippage where they dont. I have been chatting to allmost every broker for advice but still struggle with some concepts. Like if i ask them if it will help if i get a fast server in Chicago they say it will not work? My order go in long before the market gets there. So im not sure how it works but if my US friends dont get the slippage why do i? So my question is the following..will it help me get better fills on a server in Chicago? I have ok ping and download speed. Home is ping 60ms and 7 download speed and office is ping 4ms and 3,5 download speed?
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  #2 (permalink)
 
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 sam028 
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Welcome @MadManmos.
I don't understand your figures, ping from where to where ?
Can you try speedtest, using Chicago as the test server ?

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  #3 (permalink)
MadManmos
London UK
 
Posts: 20 since Jan 2011
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Hi, sorry thought i had to put it there..sorry.
From my house i ping 60 ms to closest server but 144ms to Chicago.
My office is 4ms to closest server but 104ms to Chicago.

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  #4 (permalink)
 
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 HowardCohodas 
Canton, OH
 
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Are you running a robot for milliseconds to make a difference?

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  #5 (permalink)
 
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 sam028 
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A VPS is much better when it's use for automatic trading: the bandwidth and the ping is much better, so the fills are also better.
With discretionary, it's a bit different.
In most cases you use Remote Desktop Connection to "see" your VPS screen. Between your keyboard and your screen, you will have the same 144 ms ping, so when you click on "Buy Market", the order will be processed by the VPS at T0+144ms. Just like if you had no VPS, but the big difference here is that the amount of data received and transmitted is much smaller with a VPS (only mouse and keyboard events, and screen display), the market data doesn't came from Chicago, before being processed by your home computer.
So I think it's faster in this case too (but not very easy test it).
But if your money management rules are automated, using NT ATM for examples, it will be of course much better with a VPS.
We have a thread on this in the Elite sub-forum ( here).
And if you want to test, to check if your fills will be better or not, just ask me, I'll give you a VPS to test for one or two weeks (it's free), with this kind of ping/bandwidth to Chicago (the VPS is in Chicago):

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  #6 (permalink)
MadManmos
London UK
 
Posts: 20 since Jan 2011
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I would like to give the VPS a trail. Can you tell me the speed of the server? Dont even know if there is a answer to that? Sorry my knowledge in this deparment is zero. And if it works do you do VPS lease? And can you give me a sort of idea what the pricing for that will be and is it monthly contracts? And the server is in Chicago?
Thanks

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  #7 (permalink)
 sysot1t 
 
Posts: 1,173 since Nov 2009

here is a graphical depiction that I am hoping will aid others that are comtemplating the VPS route...

There are a number of factors that one has to take into account with regards to your order placement on the queue... but the main one is proximity to the exchange infrastructure. Please keep in mind that normally, unless you have the infrastructure, you wont be near the exchange but rather you will need to get as close as you can to your order entry gateways since the FCM's infrastructure is the one connected to the exchange.

The first thing you need to have a clear understanding of is your route to the OEG servers. If the latency in there is variable and unpredictable, then you would benefit from colocating to a location that has better network routes and lesser latency networks or that are more reliable.

the following are very high level depictions, but they will give you a good idea of the flow. Please keep in mind that the only benefit to interactive traders will be for their resting orders on the trading platform when hosted on a VPS near the exchange/fcm... for algo traders, the benefit is 100% faster execution from the signal receipt/trigger/event, etc.

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  #8 (permalink)
MadManmos
London UK
 
Posts: 20 since Jan 2011
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To Howard, no im open my platform get my levels and then enter my ATM order so when the price trades there
it will trigger. Its breakout locations and hence the bad fills. I have friends doing the same trades in US and they dont get my fills? Much better.

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  #9 (permalink)
 sysot1t 
 
Posts: 1,173 since Nov 2009


MadManmos View Post
To Howard, no im open my platform get my levels and then enter my ATM order so when the price trades there
it will trigger. Its breakout locations and hence the bad fills. I have friends doing the same trades in US and they dont get my fills? Much better.

NT7 orders are on the workstation(your desktop) they are impacted by your latency...

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  #10 (permalink)
MadManmos
London UK
 
Posts: 20 since Jan 2011
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@ SYSOT1T so a server would defnitly help me. Cause the order will go to the server and would be much faster seen than my latency from uk? If server are in Chicago?
Thanks

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