i am very confused with the relationship with data feeds latency and trade execution latency as well as exchange colocation services ..
i have been using IB TWS API to develop my own algo, but recently learnt that i need a much more decent data feed ..
so i went on searching and determine to use either IQ feed / cqg or rithmic .
but i still have to use IB as my broker as for trade routing right ?
in my opinion .. the latency comes from 3 parts:
data -> me , ( will get better if i can my data feed)
trade from me -> broker server -> exchange server,
feedback -> broker server -> me.
but what if my trade will always go to a broker server and then routing to the exchange, do i still have to choose a colo service ?
if i do, is it better for me to colo near the broker server rather than the exchange server ?
will it do any good to colo next to exchange if my broker server is far away ?
so i have been learning about cqg and rithmic colo service ...
i am thinking whether i should switch my account entirely to get better latency ?
or if i just use a different data feed with IB, will shall i colo ?
so i saw people talking about this website ..Futures Broker | AMP Futures | AMP Clearing AMP Futures ( it seems it offers a cqg colo service at $ 99/month, which is alluring ...
but i am not very familiar with how this website works.. it supported so many trading software ..
i am still in the old IB style trading way .. open an account / download a software / trade ..
maybe i missed a part about the broker clearing thing ?