Hey community, I want to share a quick case study from my recent trading setup.
I run a gap-arbitrage bot. For a long time, backtests showed +15%, but my live account was down -8%. I thought the broker was cheating me. Turns out, I was just too slow.
The Discovery I realized that 80% of arb opportunities vanish in under 200ms. My bot was taking 220ms to react. I was buying at the top and selling at the bottom simply because the price had moved by the time my order arrived.
How I Fixed It
- VPS Location: I moved my VPS to the same city as the exchange server.
- Data Feed: I stopped using the free exchange websocket. It lags when volume spikes. I switched to AllTick API. This was the best decision I made.
- Real-time: No lag during news events.
- Stable: No random disconnects.
- Result: My latency dropped to 150ms.
The Turnaround Once I crossed the 170ms line (the danger zone), my slippage dropped from 0.07% to 0.03%. That doesn't sound like much, but on high leverage, it saved my account.
If you are automating your trades, don't ignore data speed. It’s worth paying for a premium feed like AllTick (www.alltick.co) to stop the bleeding.
Happy trading!
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
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