How much latency is too much for day trading?

Discussion in 'Networking and Security' started by george_the_second, Nov 3, 2020.

  1. AbbotAle

    AbbotAle

    As others have said, if you're using the mouse, latency isn't a problem (assuming it's half decent).

    Also, have you considered changing to IB's Euro server? I think they have one in London and probably Germany, maybe more.
     
    #11     Nov 3, 2020
    george_the_second and CALLumbus like this.
  2. MarkBrown

    MarkBrown

    you can always send buy and sell orders simultaneously to different geographical exchanges and use the latency to your advantage to obtain less latency than anyone can get using hardware alone. this is real hft.
     
    #12     Nov 3, 2020
    apdxyk likes this.
  3. jharmon

    jharmon

    LOL
     
    #13     Nov 3, 2020
  4. traider

    traider

    learn programming
    get colocation
    latency reduced
     
    #14     Nov 3, 2020
  5. I am connected to IB's UK server. But for trading US products they, too, have to get data from the exchanges from across the ocean, so am I correct to be taking the latency to IB US as benchmark?
     
    #15     Nov 3, 2020
    qlai likes this.
  6. Personally, I wouldn't bother with latency concerns unless they are extreme, and maybe not even then... by that I mean measured in SECONDS, not MS.

    With prices fluctuating noisily as they do, you don't know whether the next tick or two will be up or down.... whether it will help or hurt your fill by a penny or two. Besides, you can't "see a trade and click the mouse" fast enough to make a difference that might be influenced by latency. Over time and a number of trades, any "latency randomness" should even out. If you perceive your success being influenced by latency, you're "fishin' in a dry hole" anyway.
     
    Last edited: Nov 3, 2020
    #16     Nov 3, 2020
    trader99 and george_the_second like this.
  7. Turveyd

    Turveyd

    smaller is better, because it adds to your own clicking thought speed, but 120 is fine unless your proper scalping for a tick or 2 I guess.
     
    #17     Nov 3, 2020
    george_the_second likes this.
  8. yc47ib

    yc47ib


    few minutes to half an hour is not right, some brokers and data feed have this issue, CQG rarely to never, you might consider switch. I had this issue with Gain Capital's data feed. Transferred out since.
     
    #18     Nov 8, 2020
    apdxyk likes this.
  9. You specify the latency from the internet connection. But you forgot to mention that IB does not send every tick to your TWS. They aggregate ticks and send you an update every 250 ms (forex: 50 ms). This will add to the combined latency.
     
    #19     Nov 9, 2020
  10. Ah, yes, I now remember reading about that, thanks

    They do mention that there is a distinction between market data and tick by tick, and the latter is available in the time&sales window starting with TWS v969.
    https://interactivebrokers.github.io/tws-api/top_data.html

    In any case, to broaden my perspective, do you have any recommended alternatives for affordable tick streaming data? I have seen IQfeed mentioned in another post.
     
    Last edited: Nov 9, 2020
    #20     Nov 9, 2020