How much speed is enough?

Discussion in 'Trading' started by jwbryant, Feb 18, 2001.

  1. p2


    Bandwidth arguments aside. No one seem to mention latency. The amount of bandwidth that required really shouldn't exceed an ISDN or perhaps even a 56K modem if only one or two stocks are being watched.

    In case, people are wondering about the difference.
    Bandwidth is "the amount of data that can pass from the source to destination per unit time."
    Latency is "the time between sending the data from the source end to the far end."

    The most common way to measure latency is to use a round-trip-time calculation with the ping utility.

    It's really the latency between endpoints that's important. Some ISPs offer high-bandwidth DSL connections but if their internet connectivity is poor and the lower latency will effect the data.

    rtharp, I don't mean to sound skeptical but a T4 is a HUGE circuit. Unless your friend is using a T4 shared with a lot of people, it's just not cost-effective.

    Just to give people some perspective, a T4 is the equivalent of 178 T1s and is capable of 4032 simultaneous clear-channel voice conversations. It's a rarely used type of circuit.
    #11     Feb 20, 2001
  2. The T4 is shared with 15 other traders for your info.

    I'm just sharing my experience that I've seen phone modems with 56K being too slow. I'm trying to make you aware of what some of the traders you are trading against are using. It depends on the amount of capital you are trading with for this type of cost to justify. Most traders aren't anywhere near this level. I may have gotten too far ahead of myself here.

    The T4 is used by one of the Market Wizards, and his trading group isn't the one I'm related to. I can't disclose who it is but he is in a league beyond most traders including me.

    I do run ping plotter (go to download and it's a shareware program)
    #12     Feb 20, 2001
  3. rpc


    This is an interesting thread for me. I always wondered what type of connection would be the minimal for trading in short time frames. If Lancer is using on average 40 - 50 kbps, then aside from peak usage times the actual bandwidth needed would be quite small. It seems to me that latency would be a much more important factor for trading in short time frames. I always wondered why some traders were using frame relay connections running at 56 - 128 kbps. I guess it is the stability and latency that they find useful.


    What software did you use to measure the data throughput of your trading data connection?

    #13     Feb 20, 2001
  4. xll


    I was skimming through Rtharp's interview with Catalite who says:
    " The Internet has improved my trading with real-time intraday charts for timing entries and exit. I don't use anything special, A 166 PC with a 28K modem "

    Amazing, how does he keep up with you, Rtharp? You said on another thread that "I trade with Catalite. We find trades for each other. Hitting new ideas back and forth all day long. "
    I guess he got himself a new computer....

    #14     Feb 20, 2001
  5. Catalite was trading breakouts intraday with a swing timeframe. After talking with me for awhile and a few posts. He has upgraded to cable, run a Pent III computer with an account at Cybercorp. He is now trading breakouts with daytraders timeframe and trading off LEVEL2. We bounce breakouts off of each other throughout the day. I find though only the first hour breakouts have any potential of holding as of lately. So I ignore most of them.

    You can trade with a phone modem but longer timeframes should be done. Don't try to take a few pennies with a phone modem connection.

    #15     Feb 20, 2001
  6. Lancer


    When I set out to build a trading system, I had the same questions as jwbryant (who started this thread), only I never found the answers prior to building my system. Fortunately, I guessed about right.

    So others don't have to guess, with all of us here using different data feeds, trading software, and internet connections, how about a little field testing and reporting back here with real numbers?

    A report might include the following:

    System and Connection -
    Subscribed bandwidth (56Kbps, 768Kbps, 1.5Mbps, etc.; Down/Up):
    Type of network connection (dialup, cable, DSL, frame relay, etc.):
    Computer system resources (CPU and Memory):

    Software and Data Vendor -
    Realtime trading software tested:
    Software configuration (# of L2 displays, large stock lists, lots of charts, # of RealTick client conversations, etc.):
    Realtime data feed tested:

    Test Results -
    Avg. throughput in Kbps (incoming and outgoing):
    Peak throughput in Kbps (in/out):
    Typical ping time to data server (ms):
    Packet loss % (if available):
    Major backbone route (Sprintlink, C&W, UUNet, etc.):
    CPU utilization (%):
    RAM usage (MB):
    Comment regarding effect of different demand situations on test results (at market open, very heavy volume stock, low volume stock, multiple L2 displays, changing stock symbols, loading a new trading page, etc.):

    Tools needed -
    Ping or trace-route utility: (Windows Start-Run-Command-Ping, or other ping/tracert utility)
    CPU and RAM monitor: (Windows Task Manager (Performance tab), or other utility)
    Bandwidth monitor: (There are lots of these; I use DU Meter [There may be something better than DU Meter out now as I have not checked in a while.])

    Other sources for bandwidth/CPU/RAM monitors and ping/trace-route utilities: (long list of network tools)
    Other download sites for network tools: etc.

    So, in actual hard numbers, what do you really need?
    Bandwidth (down/up):
    Type of Network Connection:
    #16     Feb 20, 2001
  7. jwbryant


    I am impressed with the responses I have received to my first post on this site. The information provided was very useful. I would like to thank those that responded. I now know enough to have an idea of what I need and what to ask when I'm checking with the various services available. I also realize I know enough to be dangerous but at least it is a start. Thanks again!
    #17     Feb 23, 2001
  8. Lancer


    #18     Feb 23, 2001