If you just send limit orders to the exchange to sit there, then you also don't need colocation or any HFT like structures ... Your order sits at the exchange, no matter how you place it (at least for regular limit orders, other order types are most likely not held at the exchange but at your brokers server or on your local machine depending on what service you use to execute). Colocation is only useful for automated strategies that use market type orders. For limit orders that stay in the book some time before they get executed it makes absolutely 0 difference. If you are manually trading on a colocated server you are only adding an extra step which equals to even more potential delay, you need to connect to the server in the first place since you are still pressing the buttons from your own home or office. Colocation only makes sense if the trading is actually happening from the actual server without external intervention.
Also, you can't get negative slippage on regular limit orders in the first place. Limit orders only fill at the price you want, or beter, but i think i never experienced the latter
. But getting positive slippage wouldn't be a bad thing.
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