I’m trader algorithmic and I will search a faster VPS with low latency. I had speedytradingservers, TheOmne.net, Souyoustart and today I have VPSserver.com and I have not found speed improvements even having a more expensive VPS than VPSserver. Someone can explain your experience or any recommendations. Thanks
Can you help answer these questions from other members on futures io?
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, SI, Bitcoin & Ether
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VPSs can be nice but your also very dependent upon your software and broker. For example if part of the software order routing involves a credit check with your broker, then no matter how good your VPS your still dependent upon the routing to your broker. For example Tradestation perform a credit check in Florida, I believe Interactive Brokers perform it in Nee Jersey, so in both of those cases having a super fast server in Chicago isn't going to help you.
The following 2 users say Thank You to SMCJB for this post:
Hello, my broker is Phillip at Chicago, my data feed provider is Rithmic that your server at Aurora, this is reason to research a best faster Vps for I will have all stuffs can in my hands. Thanks for your response
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, SI, Bitcoin & Ether
Posts: 4,559 since Dec 2013
Thanks: 3,883 given,
9,176
received
Your software (or you) creates an order, that order has to get to the exchange matching engine. How it gets there is called 'order routing'.
Example A. You live in Chicago and trade from home using Software ABC. When you enter an order that order goes across the internet to your Brokers order gateway in Florida where your broker performs a credit check on your order, before sending it to the CME back in Chicago. So even though your in Chicago, and the exchange is in Chicago, your order is actually travelling (routed) all the way to Florida and back. Having a faster VPS in Chicago isn't going to help you if the order has to go Florida.
Example B. You live in Chicago but your automated execution software is hosted on a VPS at the Cermak data center in Chicago. When your software generates an order it sends it to the brokers gateway which could be in Cermak or Aurora. After a quick credit check your broker sends the order to the exchange matching engine in Aurora. So your order had to travel about 50 miles from your software to the exchange.
Example C. You live in Chicago but your automated execution software is hosted on a server at your brokers co-located space in Aurora. When your software generates an order it sends it to the brokers gateway which is 6ft away. After a quick credit check your broker sends the order to the exchange matching engine which is 100ft across the room. So your order had to travel 106ft to get from your software to the exchange.
Example C is routed a little bit faster than Example B which is routed a lot faster than Example A.
Of course Example C (probably $1200/month+) is a more expensive then B (anywhere from $75-$1200/month), which is a lot more expensive than A.
You also need to think about price feed/data routing. Some data vendors have the price data route through their own servers at their offices before going to you. It's possible that by the time your computer is even seeing somebody else's order that it is already gone.
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Thanks for your response.
I had two servers with same data feed and same provider (Rithmic-Phillip), one server in NY ($50) and another in Aurora ($100). I had been working one month and I didn’t see many differences in the order’s filled. That’s the reason for searching many experiences of other’s trader’s. I think that I am in Example B.
For my trading I need low latency and I think that I have a good broker and data feed but I believe so I will search another Vps better than Vpsserver.com (NY) because my experience in Aurora it wasn’t good.
Thanks
You should start by check the exact timestamp for each order state, and see if there's something wrong there.
NY is 18 ms from Aurora, so the results should be much worst from there.
Then ask your providers some performance charts of the hypervisor hosting your VM, and their CPU overselling ratio (the machine in Aurora may be heavily oversold).
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The following 2 users say Thank You to sam028 for this post:
Alvaro, si necesitas tan baja latencia para tus sistemas, lo mejor es que compruebes el timing de entrada de las ordenes en el mercado como ha dicho sam028. Si tu broker comprueba el crédito o cualquier otro tipo de chequeo en la cuenta previo a lanzar la orden al mercado no vas a ganar nada con otro servidor. Necesitaras antes evitar esas comprobaciones o cambiar de broker.
