+1k. ES Minis contracts per day

[MarkBrown]

you need some help on:

• best hardware
• best software
• best data
  
• best connectivity
  
• best clearing

like others have said "never" use "wireless" anything - it takes time and money to figure all this out get to it.

when i manually trade i use a game controller it's 10x faster than a mouse.

 

[SimpleMeLike]

Sure.

If you do manual trading, you usually go like this:
1) You look at the chart or whatever data representation you use.
2) You think of what you will do based on your system/model.
3) Then you manually enter your order (on DOM or else) with you mouse or keyboard.
All those steps will take you what, 1, 2, 3 seconds (if your fast!!).
And I'm not even including the time is takes for you application to received and show the market data.

So, it's not a couple of hundred of milliseconds that will make a big difference in this case.

FWIW, IB round trip response time between the time a market order is sent and the time the fill is received is around 250 ms. If a faster broker exists (very probable), you will save what, 50,100, 200 ms. 100 ms substracted from 2-3 seconds will not make a big difference (percentage wise).

Manual trading is slow by definition.

But if someone is using a broker that takes many seconds to process and transmit the order to the exchange, then it's another game.

Thank you for responding.

Will I have this issue if I use limit orders and stop orders to enter the trade, rather than market orders?

I am sorry, but I am not understanding why duration of time is so important. I am just enter trading and exiting trades. What does it matter the time it takes for order to reach broker? It is something I can not control, right?

 

[DevBru]

Thank you for responding.

Will I have this issue if I use limit orders and stop orders to enter the trade, rather than market orders?

Of course not, since limit orders are sitting at the exchange until being filled.

For stop orders, it depends if the orders are held locally on your device or on a server on the brokers side.

 

[SimpleMeLike]

FWIW, IB round trip response time between the time a market order is sent and the time the fill is received is around 250 ms. If a faster broker exists (very probable), you will save what, 50,100, 200 ms. 100 ms substracted from 2-3 seconds will not make a big difference (percentage wise).

Manual trading is slow by definition.
.

Hello rb7,

Maybe I am confused, sorry, but what is wrong with the order being received in 250 milliseconds? Is that not fast enough to fill a 1 to 1000 ES contract order?

 

[SimpleMeLike]

Of course not, since limit orders are sitting at the exchange until being filled.

Hello DevBru,

Thanks for responding.

So if limit orders fixes the issue with speed of fill concerns, why not just limit orders to when trading if speed of fill is a trader's concern?

 

[DevBru]

Hello DevBru,

Thanks for responding.

So if limit orders fixes the issue with speed of fill concerns, why not just limit orders to when trading if speed of fill is a trader's concern?

Because that isn't always an option.

 

[CannonTrading_Ilan]

Hi,
Currently trading +1k. contracts ES Minis daily.

Looking to scale it but currently paying to much in commission's with my broker and also their latency is not optimal.

Any suggestions on a better set up for high volume traders ?

Thank you

We have specific set ups for high volume traders like you. I personally will set up either with CQG or Rithmic and explore CME membership or leasing a seat. Happy to assist personally if you like via PM.

 

[rb7]

Hello rb7,

Maybe I am confused, sorry, but what is wrong with the order being received in 250 milliseconds? Is that not fast enough to fill a 1 to 1000 ES contract order?

There's nothing wrong with that. I don't know why you assume this.

And the 250 ms is not the time the order being received, but the whole round trip response time between sending the market order and receiving the fill.

 

[rb7]

Hello DevBru,

Thanks for responding.

So if limit orders fixes the issue with speed of fill concerns, why not just limit orders to when trading if speed of fill is a trader's concern?

The order type is irrelevant for the time it takes for the order to reach the exchange.
In fast moving market, you want your order to reach the exchange as fast as possible in order to reduce slippage.

 

[DevBru]

The order type is irrelevant for the time it takes for the order to reach the exchange.
In fast moving market, you want your order to reach the exchange as fast as possible in order to reduce slippage.

This is true, only if you want to open a position right away, aka buying with a limit above current market price.

If you have a limit order resting on the exchange there will be no slippage.