Trading Computer Network Connection / Safety

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Limitless100

Hey guys,

So I am working on optimizing my PC to the best of my abilities. I understand that internet connection is one of the most important aspects of trading. My style of trading is high frequency day trading / scalping. Not to be confused with algorithmic HFT trading. I simply mean high volumes of trades during the day.

Latency seems to be of major importance for successful fast paces trading. Right now my connection is roughly 80UP/40Down Mbps. Latency to NYC is around 7ms.

I have the option to upgrade to 150UP/75Down, not sure how my latency would be affected.

Is the upgrade worth it?

On to safety. I am purchasing a UPS to power my system. I would of course like to keep my internet running simultaneously to close out trades and such. If I were to plug in my router/Verizon Main unit (modem) should I sustain internet?

Thanks guys
 
I think you have it backwards. Usually on a dynamic line the faster speed is your download speed and the slower speed is your upload. Either way 80d/40u is great. For bandwidth reference, during the flash crash we sustained about 17 mbps of traffic. That's with an Activ and a Bloomberg feed. Your 80d/40u is plenty of bandwidth.

I don't know what service you are on (Verizon so I assume some type of FiOs) but if you can get a cheap business class connection (even through Verizon) you may find a little more reliability and lower latency.

As for the UPS (battery)... Yes - plug your modem and your router both into the UPS (or buy a dedicated one for your router/modem) but remember that loss of power may be due to downed lines and in that case you'll most probably also lose connectivity. Best to get on the phone with your broker and just get flat (close positions and cancel open orders). Think of internet as two pieces - power and the pipe. If you have a battery your router may stay on but if the wires go down you are still not connected.

Also, not sure where your broker is located or where your data feed comes from but upgrading on your local ISP may not really give you as much as you think you'll get.
 
I echo that.

Don't have a false sense of security. You think plugging your router/modem to a UPS and your internet connectivity can stay uninterrupted. It depends on how the electronic signals are transmitted from the ISP's office to you. Say the street power to your residence block is cut. Your ISP's equipment may or may not have battery backup to keep them running. In the end, street power gets cut, their boxes may go black too.
 
In addition to the above. If reliability is what you seek, no better method than redundancy.

Multiple computers/devices
Multiple ISP's with different technologies, i.e. Fiber, Cable, ADSL, 3G/4G
[Dual Wan Router's]
Multiple Brokers, Primary and Backup/hedging

Typical setup, options:

Primary: Computer/Monitor/Modem w/UPS - Fiber optic/ADSL/Cable ISP
[Dual Wan Router also a possibility]

Secondary: Laptop - Modem w/UPS - Fiber optic/ADSL/Cable ISP

3G/4G USB key as back up for either above

Android/Apple Device - 3G/4G - with Mobile App
Android/Apple Device - 3G/4G - with tethering capabilities (preferably USB and/or Wifi)

Many options available with today's technology and pricing. Just need to be a bit creative and plan ahead.

And when all else fails, go old school. Write all your brokers phone numbers on the back of a business card and place in your wallet.
 
WinstonTJ said:
I think you have it backwards. Usually on a dynamic line the faster speed is your download speed and the slower speed is your upload. Either way 80d/40u is great. For bandwidth reference, during the flash crash we sustained about 17 mbps of traffic. That's with an Activ and a Bloomberg feed. Your 80d/40u is plenty of bandwidth.

Yes my mistake! 80D/40U! Wow, that's very interesting I wasn't aware of that. I will also be running internet tabs as well, but I don't see it coming close to the 80MBPS download availability. So you wouldn't suggest going for 150? It would provide 0 additional benefits given that I am not downloading massive files while trading? Lol

I don't know what service you are on (Verizon so I assume some type of FiOs) but if you can get a cheap business class connection (even through Verizon) you may find a little more reliability and lower latency.

Maybe something like that would be a smart route to take. I have though about it in the past! Through verizon a business internet line looks to be around 120-130 monthly which seems pretty steep given that it's for a single service!

As for the UPS (battery)... Yes - plug your modem and your router both into the UPS (or buy a dedicated one for your router/modem) but remember that loss of power may be due to downed lines and in that case you'll most probably also lose connectivity. Best to get on the phone with your broker and just get flat (close positions and cancel open orders). Think of internet as two pieces - power and the pipe. If you have a battery your router may stay on but if the wires go down you are still not connected.

Okay I will do this. Yes I understand that, but if it gives me an additional chance to sustain my internet it's worth trying.

Also, not sure where your broker is located or where your data feed comes from but upgrading on your local ISP may not really give you as much as you think you'll get.
More...

Data Feed is through the Takion Platform. I believe they are Co-lo at NY4.
 
Bolimomo said:
I echo that.

Don't have a false sense of security. You think plugging your router/modem to a UPS and your internet connectivity can stay uninterrupted. It depends on how the electronic signals are transmitted from the ISP's office to you. Say the street power to your residence block is cut. Your ISP's equipment may or may not have battery backup to keep them running. In the end, street power gets cut, their boxes may go black too.
More...

Absolutely true, it's not a guarantee, but if it gives me more of a chance than I had, it's probably worth it.
 
NoBias said:
In addition to the above. If reliability is what you seek, no better method than redundancy.

Multiple computers/devices
Multiple ISP's with different technologies, i.e. Fiber, Cable, ADSL, 3G/4G
[Dual Wan Router's]
Multiple Brokers, Primary and Backup/hedging

Typical setup, options:

Primary: Computer/Monitor/Modem w/UPS - Fiber optic/ADSL/Cable ISP
[Dual Wan Router also a possibility]

Secondary: Laptop - Modem w/UPS - Fiber optic/ADSL/Cable ISP
Are you referencing a separate modem/UPS here?

3G/4G USB key as back up for either above
Could you explain what this is? I have heard of something similar (4G hotspot).

Android/Apple Device - 3G/4G - with Mobile App
Android/Apple Device - 3G/4G - with tethering capabilities (preferably USB and/or Wifi)
Unfortunately my Platform does not offer a mobile app (Takion).

Many options available with today's technology and pricing. Just need to be a bit creative and plan ahead.

And when all else fails, go old school. Write all your brokers phone numbers on the back of a business card and place in your wallet.
More...

Thanks for the helpful post!
 
Limitless100 said:
Secondary: Laptop - Modem w/UPS - Fiber optic/ADSL/Cable ISP
Are you referencing a separate modem/UPS here
More...

Any and all ISP modems should be on backup power/UPS.

The laptop is the backup in the event of primary system failure. Its battery serves as a built in UPS.

3G/4G is an alternate technology as back up in the event of ISP/modem failure
[note: it is preferable to use a different provider]

This can be either a dedicated 3G/4G -USB stick/key - [think of a sim card in a USB flash drive]
Similar to this: http://www.virginmobileusa.com/shop/mobile-broadband/broadband-2-go/franklin-wireless-u600/features/

or

Android/Apple Device - 3G/4G rate plan with TETHERING capabilities - (preferably USB and/or Wifi)

As Winston mentioned, many points of failure exist, hardware, feed, power, brokerage, etc... You need to have contingencies for each.

Personally I have ADSL and 4G from different providers, soon FiO will be available in my building and I will have three technologies from different providers at my avail. The most stable will be connected to my primary system and the other to laptop via ethernet.

My 4G backup is a Nexus 5 which I can either tether to computers or use mobileTWS[IB] to close positions directly depending on situation.

When you need to close positions in an emergency. ~$30-$100/month is a small price to pay for insurance.
 
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