When you synchronize local time for automated trading purposes, there are three types of time you can use as a reference time: exchange time, brokerage time, and UTC. Which one of these do you use? If you go by exchange time, then what if you trade multiple exchanges? Likewise, if you go by brokerage time, what if you have accounts at multiple brokerages? Thanks.
Your broker. You don't self execute. You have a platform on your desktop/PC... it sends orders to your broker. Your broker then executes your order. Your broker's server uses NTP (Network Time Protocol) and sync's to a server somewhere. Have your clock sync to whatever clock your broker sync's to. (Google "NTP Servers") I know some guys at NY1 and NY4 use tick.usno.navy.mil. They seem to have very little clock drift but I'd also assume if you ping a government server they probably know exactly who you are and what you ate for breakfast. Others use Rutgers or Columbia University's NTP servers and I know a few guys who use MIT's even from down in NJ. SIT - Stevens Institute of Technology had some trouble for a bit but I know two of the guys over there and they seem to have sorted out their issues to be pretty reliable. Just use whatever your broker uses. Don't use any of those fancy "auto sync" tools. Just make sure your Windows time server is sync'd with your BIOS and reboot/power cycle daily. If you use one of those fancy tools and it breaks time with your BIOS clock it can really reek havoc on your outgoing messages if you us an onboard NIC. IF you use one of those auto-sync clock 3rd party applications DO use a decent add-in Intel NIC like a Pro 1000 GT/PT.
Thank you! I'm using Interactive Brokers. How do I find out which NTP server they use? Actually, I have a on-board NIC and was going to use Meinberg NTP to automatically sync time every hour or so because my BIOS clock drifts quite a lot even after a day despite that I power cycle my computer every day. Is this a receipe for disaster?
Call them and ask. Depending on your account level they may or may not share that with you but they most probably will. Not to switch this over to a hardware issue but if you have significant clock drift between your BIOS and your Operating System that's an issue. #1, what kind of computer/laptop are you using... is it under warranty? #2, how old is it and when was the last time you replaced your CMOS battery? You can go into any drug store and buy a new battery for a few dollars (like $3-$5). Pull the old one and look at the numbers before you go to the drug store. #3, is there a BIOS update from your motherboard manufacturer? Depending on the age and type of your machine I'd go to the manufacturer's website and look for an update and then read the notes/fixes in it to see if clock drift is a fix... You may be able to simply upgrade your BIOS. So many people put system-resource hogging junk on their machines as a bandaid to the real underlying problem... Just like Anti-Virus... Put two or three AV or Anti-Spyware programs on your machine... or just stop watching porn and going to suspect links/sites... It all depends on how you are trading. If you are just using TWS and manually entering orders it really has zero impact on you, even as-is with the clock drift. If you are in any way automated or have a P2P (point to point) or connect directly with an IB server then it could be a major issue either way. You probably need to update your BIOS and replace your CMOS battery. At the same time, reset your CMOS and reconfig your BIOS settings (don't just replace and restore from a file) and you'll be fine. That way you can avoid any extra clock-sync'ing junk on your machine. You are trying to solve the wrong problem. The real problem is you have clock drift between your BIOS and your Operating System. That's not good and by forcing the BIOS clock to sync hourly it just means that every 59 minutes you still know there will be drift. If the problem is solved correctly it should never be an issue again. Do you have some crazy home-brew PC with an overclocked motherboard?
You nailed it. Like you said, I'm using an old computer with a really old BIOS for trading.(Yet I'm using a high end computer for gaming!) I had some problem with its CMOS battery a while ago, too. Never thought it was a hardware issue. I'll get a new computer, as it's showing its age anyways. Thanks for your help. You saved me a lot of future trouble.