Slow High Frequency Trading

[Jerry030]

Quote from WinstonTJ:

i would suggest trying to combine the modeling and execution box into the same thing.

gigabit switches and a really good network can get you where you need to be.

Write to a common drive/network drive/GOOD NAS, use RAID, use high I/O, use low latency broker/risk check, have decent connectivity.

I know many people who take data in to one location and then bounce it to either a central database or to a bunch of boxes on their network (legally of course). Your method is sound, you just need to execute and work on some little network nuances and it seems like you would be fine.

Thanks for the suggestions.

 

[t482]

Once you have tested it may be worth looking at colo at Equinix NY4

Cheers

 

[Jerry030]

Quote from t482:

Once you have tested it may be worth looking at colo at Equinix NY4

Cheers

Thanks for the suggestions.

After looking into HFT with several HFT firms I'vehave found that
perdictive anlaytics does not work very well on HFT data and is much more profitable on longer time farmes (minutes to hours) so we are runnning on a regular server (remote)

 

[syswizard]

Quote from Jerry030:

Thanks for the suggestions.

After looking into HFT with several HFT firms I've have found that
predictive analytics does not work very well on HFT data and is much more profitable on longer time farms (minutes to hours) so we are running on a regular server (remote)

I'm not surprised at this, but keep in mind, many HFTs have a terrifically low cost per order and they also have a tremendous SIZE for each trade. That makes their 15 second trades very lucrative.
IOW: with their size and commission advantage, they're making $1000's for 15 seconds; we would be making $10-20 at the most.

 

[Jerry030]

Quote from syswizard:

I'm not surprised at this, but keep in mind, many HFTs have a terrifically low cost per order and they also have a tremendous SIZE for each trade. That makes their 15 second trades very lucrative.
IOW: with their size and commission advantage, they're making $1000's for 15 seconds; we would be making $10-20 at the most.

Profit is always a function of ability to predict future dynamics, the acccuracy of such predictions, realized and theoritical risk, capital, leverage and opportunity regardless of time granularity.
The HFT firms I know have an annual return on capital < 150%
which is pretty modest.....perhaps there are others doing better than that, I don't know.

 

[ybfjax]

Quote from Jerry030:

I'm located in Chicago, about 10 miles form the CBOT, but the system is for Forex.

Thanks to all who have commented as I now see that collocation is not really my first step or probably even required.

You can use a vps, which may be a cheaper always on alternative. A good trader vps is www.commercialnetworkservices.com . Not the only one, but their customer service is excellent and they have special tweaks specifically designed for traders. And they also have 2 factor security login and an email-to-SMS service free and paid service. Their hyper-v virtualization allows for always on connection, so no forced windows updates or weekly reboots.

An always on connection and computer is essential for AT.

 

[Jerry030]

Quote from ybfjax:

You can use a vps, which may be a cheaper always on alternative. A good trader vps is www.commercialnetworkservices.com . Not the only one, but their customer service is excellent and they have special tweaks specifically designed for traders. And they also have 2 factor security login and an email-to-SMS service free and paid service. Their hyper-v virtualization allows for always on connection, so no forced windows updates or weekly reboots.

An always on connection and computer is essential for AT.

Thanks for the tip on this service. It potentially looks very useful

 

[earlyexit]

Quote from ybfjax:

You can use a vps, which may be a cheaper always on alternative. A good trader vps is www.commercialnetworkservices.com . Not the only one, but their customer service is excellent and they have special tweaks specifically designed for traders. And they also have 2 factor security login and an email-to-SMS service free and paid service. Their hyper-v virtualization allows for always on connection, so no forced windows updates or weekly reboots.

An always on connection and computer is essential for AT.

Do you or anyone else know of a comparable trader friendly vps service that is in Chicago?