Still didnt get a response, what are you doing that requires even 1/2 second response time to be profitable? You sweeping the ES book 5 levels? You arbing 500k SPY vs ES to make a penny? What's the fetish with 1 and 2 millisecond? Im seriously interested, and it would make a whole lot more sense if the reasoning was explained.
for every strategy u optimize there will be another created or copied by a competitor that is 1 cycle less.... the real latency is actually human reaction. and yes, that still applies to automated strategies. human reaction: when u realize ur automated strategy no longer works.
Nitro, i'm not full of sh&t. What works for you, works for you. What works for me works for me. I have been as detailed as I can be without hurting my own business. I think we both know what happens when you say too much right? Here's a funny story: I remember way way back when I was complaining to the Redi ECN about execution latencies. One of my first experiences, I was asking for them to review executions through their fix logs. I got some dude who was obviously young on the phone. I was trying to explain what I needed. He said, "Why would you need that? Redi is fast....lightning fast". I said, "Okay, how long does it take for Redi to execute an IOC to a limit order on the book?". He laughed and said, "Seconds..." I was speechless and hung up the phone. I knew I was in for a long long road................... Well, I am off to New York until Tuesday. I will be back checking this debate out later this week. Happy trading to all. I hope you are all profitable...no matter the latencies.
IB takes the latency issues seriously. We put a lot of effort into optimizing the speed of the various components of our order routing infrastructure. It is in our best interest to do so for at least three different reasons: We also recognize the importance of differentiating the fully electronic exchanges from the open outcry and hybrid ones:
Last time I checked, this feature didn't work when selected, because it didn't handle the NYSE 5 cent rule, which disables NYSE auto-ex outside the 5 cent band surrounding the last NYSE print. The TWS feature would route orders to NYSE, even when the 5-cent rule made auto-ex impossible, so that orders would route to the specialist and encounter long delays and typical specialist slippage. I watch TWS release notes carefully and never saw any announcement of a fix. Was it fixed? If so, I would say this is a great step in the right direction, and solidifies the position of IB SMART as the best retail smart-router.
I never suggested you are full of shit - only that you are worrying about things that you could not possibly take advantage of, and that the people that can you aren't helping them because they know what the real issues are. nitro
What markets are you guys trading? Maybe it's different in futures, but we (at my firm) realized a long time ago you will NEVER get the performance out of a clearning house that you want/need. That's not their core business (the actual clearning is) and you need someone tech-savy to accomplish this. In most cases, you'll have to do it all yourself (imho). So we have strictly administrative relationship with all our clearning firms here, and we manage all our own network end-to-end, right up to the exchanges. Sure, there's quite a bit of latency on the exchange end, but who really cares about that? That's as level a playing field as you can get at that point.... Just my $0.02 - The New Guy
Who cares about latency. What's really interesting is no one wants to say what they are doing at these sub second intervals.
Ah ha!!! Spoken like a true trader my friend, congratulations on your ability to see the forest for the trees. AM