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You sound fearful of new technology, like those who were once afraid of mechanical/programmed trading, or trading over the internet. Technology makes new things possible and reliable all the time. My original point was merely that colocation can supplement or replace the need for a PTP T1 for...

Nitro, Although difficult to trade, it IS possible to prototype, simulate and demonstrate a ultra high frequency system without all the costs you bring up. It should be possible to simulate the order queue (for futures, don’t know about stocks), and calibrate such simulation with a limited...

What if you have multiple feeds from different locations? Would you not need multiple PTP T1s? By choosing collocation centers close to your data sources, you simultaneously reduce latencies and cover multiple feeds, at substantially lower cost. My latencies between my server and IB are flat...

I have Windows 2003 Server Web Edition which includes MS RD. It came pre-installed on the serverbeach server. I believe XP and Win2K contain the server (formerly known as MS terminal server under Win2K and earlier), but it is not enabled by default. The client works on any windows OS and is...

I put software in a rar or zip archive. Then upload and install it. Yes, it’s just like being there. I find it faster to switch between my local desktop, and multiple virtual desktops than to turn to a different keyboard and monitor. I have a PC for number crunching that has no monitor.

I believe the network reliability and low latencies with collocation can match or outperform PTP T1s, at a fraction of the price. You can also achieve multi-site redundancy without adding extra offices and T1s. When I’m connected to my remote servers using Microsoft remote desktop (formerly...

It is easy to get low latency data from IB TWS, Esignal or Realtick, provided you don’t request too many simultaneous symbols than your network connection or software can handle. IB TWS may not send every tick, but their updates have consistent latencies. I use dedicated servers for data...

Win rates don’t tell the whole story. Need to look at win rate and profit factor together. Why not just judge systems on Sharpe ratio, or even better, on the ratio of daily/weekly/monthly return divided by maximum drawdown? What is the name for that ratio?

Its not only cheaper but better. It allows superior quality archival ink. Prints from my old HP inkjet with genuine HP ink always faded dramatically within a year if they were left near a window in that time. It baffles me that consumers have been tricked into thinking that tiny $20...

I recommend a continuous flow system like this: http://www.inksupply.com/index.cfm?source=html/cobra.html Apparently they work best on Epson inkjets, especially the earlier models before they added chips monitoring the ink tanks. I found an Epson 880 on Ebay for $50, added the CFS...

Yes. I believe it's possible to write an entire charting and quant system backtesting and trading application using mostly Matlab code. However it may be leaner to use other libraries or direct WIN32 for the real time charting. From...

Yeah, tick-by-tick analysis is much slower than typical bar data. I try to digest the tick data into a lower frequency data stream or make the most of computational intermediates by testing simultaneous subsystems and simultaneous parameters in a single simulation run.

It can be fast if you use the C and vector Matlab code for per-tick analysis, then higher level operations on some slower interval, say every 10 ticks. Matlab is well suited for matrix/vector operations and data visualization, and provides more built-in numerical tools than you could ever want...

Yeah, a lot of canned programs don't handle tick data well. I wrote my own analysis, using a combination of Matlab at the high level and C for low level stuff. Depending on your analysis and implementation, processing speed on a typical PC could be around a million ticks per second, maybe...

Yes. The purity of the equity charts deteriorated over time, not uniformly, but in an unpredictable way. Risk increased. Perhaps this is because the market "discovered" related patterns/systems, or because my systems simply weren't robust enough, or had overfit the past character of market. It's...

Good question. I know a trader who did very well in the late 90’s through ‘01 trading extreme daily deviations of pairs like QQQ and INTC. Doesn’t work so well now. You might say the market has changed since then. The participants are more sophisticated. Systems are proliferating...

I agree completely. I believe it's possible to develop a system, then distribute it either to improve one's winnings or to fade the effect of others trading it. I know two traders who license signals to institutions, and have had the problem of a few of their clients trading too much size and...

Like I said earlier, how can you expect something to stop working when it’s highly subjective and the win probability isn’t high enough to attract enough participation? All speculators and traders try to avoid uncertainty and make the highest probability trades. The higher probability...

So what if Forex has more volume? So what if there are no formalized market makers? There are still bids and offers. It’s just a very different market… multiple quotes, over the counter, different participants. What if anything does this say about the efficient market hypothesis? I just...