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Datafeed latency for discretionary trader


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Datafeed latency for discretionary trader

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  #11 (permalink)
Munich, Germany
 
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artemiso View Post
Yeah besides that, it's not obvious if it's IQFeed or TT/Rithmic that's "wrong" in this case since neither is a universal reference for "correct data". Both of them could be wrong.

The "cheapest" way you can tell is to use CME Direct, which is actually a pretty amazing options trading platform with awesome data for its low price that I'd recommend for anything 1 trade per hour and slower, but even CME Direct has network delay.

If @asyx really wants to know which one is wrong, he/she will need some pretty sophisticated infrastructure or a clever placement algorithm paired with Firmsoft.

@sam028 , @artemiso

Please read all my above written sentences closely again because...

I was absolutely not talking about one data feed being "wrong" and another being "right".

Last few years I compared data feeds, DOM`s and combinations ...of course also next to next.
I accumulated 1000īs of hours starring at DOMīs...

I do not know on what you base your opinion but it seems more to be of pure technical (half knowledge) nature.

It is not about theoretical physics where an electron needs a specific time to travel a specific way and the human eye processing data faster or slower compared to that in a theoretical worldor something like you indicate...

See:

In the real world when data travels from Europe to the USA and back there could somewhere be a bottleneck.

When TT is using a dedicated infrastructure but Tradovate using an Amazon server there could be a bottleneck.

If IQfeed is transmitting every tick for bid and ask and trade and all the changes per level of depth there could be a bottleneck...

When your software does a lot of calculation or your actual software setting, be it by the software of its own or the volume of data it receives, there ...yeah you know...

And then, of course, there could be several bottlenecks at the same time.

So again. I do not say that the one data feed is always several seconds behind another feed or wrong.
In slow markets or market periods, there is no issue.
If your edge is anyway that huge -no issue.
If your trading style is not performance orientated - no issue.
If you are not a nickel nurser like me - no issue.
Perhaps there are more reasons but I am more in the mood for coffee now...

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  #12 (permalink)
Bari, Italy
 
Experience: Beginner
Platform: NinjaTrader
Trading: Emini ES
 
Posts: 75 since May 2018
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asyx View Post
@sam028 , @artemiso

Please read all my above written sentences closely again because...

I was absolutely not talking about one data feed being "wrong" and another being "right".

Last few years I compared data feeds, DOM`s and combinations ...of course also next to next.
I accumulated 1000īs of hours starring at DOMīs...

I do not know on what you base your opinion but it seems more to be of pure technical (half knowledge) nature.

It is not about theoretical physics where an electron needs a specific time to travel a specific way and the human eye processing data faster or slower compared to that in a theoretical worldor something like you indicate...

See:

In the real world when data travels from Europe to the USA and back there could somewhere be a bottleneck.

When TT is using a dedicated infrastructure but Tradovate using an Amazon server there could be a bottleneck.

If IQfeed is transmitting every tick for bid and ask and trade and all the changes per level of depth there could be a bottleneck...

When your software does a lot of calculation or your actual software setting, be it by the software of its own or the volume of data it receives, there ...yeah you know...

And then, of course, there could be several bottlenecks at the same time.

So again. I do not say that the one data feed is always several seconds behind another feed or wrong.
In slow markets or market periods, there is no issue.
If your edge is anyway that huge -no issue.
If your trading style is not performance orientated - no issue.
If you are not a nickel nurser like me - no issue.
Perhaps there are more reasons but I am more in the mood for coffee now...

Thank you very much for your clear answer
Anyway I'm not a nickel nurser like you (and I never will) so: NO ISSUE

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  #13 (permalink)
Munich, Germany
 
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Gianni78bari View Post
Thank you very much for your clear answer
Anyway I'm not a nickel nurser like you (and I never will) so: NO ISSUE

aaaaaahh, letīs wait a little bit more time.
When you realize after 1-2 years that your strategy is only netting on average 3-6 ticks perhaps you start to think different.
Everything else would be unbearable for me as it meant I am wrong.

Whatīs more important, is to learn the right instrument in regard to your target style of trading.
You mentioned orderflow. So I assumed that this is part of your strategy or you even rely heavily on that.
In the ZN intention is easier to read than in NQ.

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  #14 (permalink)
Bari, Italy
 
Experience: Beginner
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Trading: Emini ES
 
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asyx View Post
aaaaaahh, letīs wait a little bit more time.
When you realize after 1-2 years that your strategy is only netting on average 3-6 ticks perhaps you start to think different.
Everything else would be unbearable for me as it meant I am wrong.

Whatīs more important, is to learn the right instrument in regard to your target style of trading.
You mentioned orderflow. So I assumed that this is part of your strategy or you even rely heavily on that.
In the ZN intention is easier to read than in NQ.

I'm still exploring what could better suit me. Thanks for your good advice

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  #15 (permalink)
SF Bay Area + CA/US
 
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once u r real adept at order flow....am talking 10/20 pts and much more.....and not playing 1-2 ticks like most do...ms timestamp has 0 value

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  #16 (permalink)
Limassol, Cyprus
 
 
Posts: 17 since Sep 2019
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How quick you are in/out would be a factor. If less than 1-2 seconds this obviously matters.

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  #17 (permalink)
Berlin
 
 
Posts: 4 since Oct 2019
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paps View Post
once u r real adept at order flow....am talking 10/20 pts and much more.....and not playing 1-2 ticks like most do...ms timestamp has 0 value

20 points in NQ are 80 ticks.

...and if one trades 10-year treasury futures it's much more than only orderflow.

I do not understand why this answer was chosen as the "original question" as it is obvious that people have no clue...
Be it people posting or moderators...

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  #18 (permalink)
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no idea..

was just replying to >> DISCRETIONARY trader the latency of the datafeed (including orderflow traders)?

its a BIG ZERO, there is 0 difference in data feed latency but thats just mho. retail feeds always have latency.
latency to orderflow traders is also 0. it just depends the type of order flow trader u r

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  #19 (permalink)
Munich, Germany
 
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paps View Post
no idea..

was just replying to >> DISCRETIONARY trader the latency of the datafeed (including orderflow traders)?

its a BIG ZERO, there is 0 difference in data feed latency but thats just mho. retail feeds always have latency.
latency to orderflow traders is also 0. it just depends the type of order flow trader u r

Sorry, perhaps I was or sounded rude.

If we are honest, everything, in the end, is order flow.
Nonetheless, most people would define order flow as a very short time period.

If one now trades on a higher time frame and aim for bigger profits than some ticks back and forth and some 100 contracts back and for play no role. And if a trader goes for a several day swing 10th of thousand of contracts play no role but Sentiment. And the longer the time period the more Fundamental are of importance.

What I reject is the arbitrary number you stated as it is no hard truth.

I assume, and I could be wrong on that, that your answer was chosen as the "answer to the original question" only under the premise that the longer/bigger your timeframe is, the less important is latency. Of course, that is true. If you trade the daily chart how who would care about 2 seconds or 10 seconds or even a minute. The targets and stop losses generally are much further away than the price could move in such a short period.

But if we talk about what most people understand about order flow trading or really short-term trading, then 1-2 ticks are of importance.

I am long enough in this business. I know what strategies/systems really yield after commissions etc.
And even if you are a super talent and bang out thousands fo $ every day: If you trade 100 contracts and lose only 1 tick that are 1000 bucks in Crude. Lots of people on earth do not have this for vacation or even for daily live.

Every other company tries to optimize its processes in every way.

Thatīs why I am of the opinion that a statement like "...donīt care about delay..." is in the wrong place. When you trade for profits, that is hard core business. Inefficiencies are not that huge. It is like competitive sports. In athletics, how do day count? Hours or minutes?!

Again,l am sorry, I don't wanted to be rude.

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  #20 (permalink)
SF Bay Area + CA/US
 
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Trading: NQ CL, ES when volatile mrkts
 
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Posts: 1,713 since Oct 2011
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asyx View Post
Sorry, perhaps I was or sounded rude.

If we are honest, everything, in the end, is order flow.
Nonetheless, most people would define order flow as a very short time period.

If one now trades on a higher time frame and aim for bigger profits than some ticks back and forth and some 100 contracts back and for play no role. And if a trader goes for a several day swing 10th of thousand of contracts play no role but Sentiment. And the longer the time period the more Fundamental are of importance.

What I reject is the arbitrary number you stated as it is no hard truth.

I assume, and I could be wrong on that, that your answer was chosen as the "answer to the original question" only under the premise that the longer/bigger your timeframe is, the less important is latency. Of course, that is true. If you trade the daily chart how who would care about 2 seconds or 10 seconds or even a minute. The targets and stop losses generally are much further away than the price could move in such a short period.

But if we talk about what most people understand about order flow trading or really short-term trading, then 1-2 ticks are of importance.

I am long enough in this business. I know what strategies/systems really yield after commissions etc.
And even if you are a super talent and bang out thousands fo $ every day: If you trade 100 contracts and lose only 1 tick that are 1000 bucks in Crude. Lots of people on earth do not have this for vacation or even for daily live.

Every other company tries to optimize its processes in every way.

Thatīs why I am of the opinion that a statement like "...donīt care about delay..." is in the wrong place. When you trade for profits, that is hard core business. Inefficiencies are not that huge. It is like competitive sports. In athletics, how do day count? Hours or minutes?!

Again,l am sorry, I don't wanted to be rude.

IS FINE....MOST WHO DO ORDEFLOW WILL THINK OF LATEMCY AND OR TICKS.....HOWEVER ITS JUST TAPE READING....AND THE ART IS TO KNOW....WHEN PEOPLE ARE SROPPED OR WHERE THE bIG LIMITS ARE....HENCE WHY LIVERMOORE WATCHED TAPE THOSE DAYS AND DID NOT HAVE ACCESS TO THE dom OR MANY ORDERFLOW TOOLS AVAILABLE AAS TODAY. WAS HE BOTHERED ABOUT LATENCY....WHEN LOOKING AT TAPE IN NEXT DAYS NEWSPAPER?....IN THAT LIES YR ANSWER

HOWEVER WE TALKINGF TRADING. IN TRADING U SHOULD NOT BELIEVE TILL U SEE O EXPERIENE. MY EXPERIENCE TELLS ME THAT LATENCY IS NOT SO MUCH OF A CONCERN....BUT OFCOURSE IS....FUING FLADH CRASH IF U STUDIED SOME OF THE ASTTES...THEY SHOWED MARKET WENT UP BEFORE RETAIL TAPE....SO LATNCY MATTERS....

I MAINLY SWING....SO IT DOESNTT MATTER TO ME....N I DONT LOOK AT TICKS....I AM LOOKING AT LEVELS AND ORDERFFLOW AROUNF THOSE LEVELS....AT THAT TIME...I AM LOOKING AT NEXT DAYS TRADING AND AT TIMES NOT THE IMMEDIAT FEW MINS OR HOURS....IN PANIC....MY TRADES ARE BASED OF FRIDAY LEVELS....SO AS IN EUPHORIA....SO LATANCY AS U CAN SEE....IF IRRELEVANT.
MY CURRENT LEVELS....N WAT I WIILL WATCH,,,,,I AM LOOKING AT OVERALL MRKT...NYSE...NASDAQ...RUSSELLL,,,,FROM A BREADTH AND ORDEFLOE PERSPECTIVE...LATENCY IS AGAIN IRREELEVANRT.,,,,MY TRADES COME DUE TO SPY CONSTITUENTS..SUCH A S WHAT HAPPENED ON QQQ....SPY...AAAPL....I CARE 2 HOOTS ON JUST WHAT es OR NQ DID....OR IS DOING.....



ON TWTR MY LEVELS R POSTED MUCH BEFORE.,.,,I DOBNT DO THAT HERE?.....R WE WRONG...N HOW MANY TIMES

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