E-Mini S&P Futures Strategies, Mini Dow, Mini Russell and Mini NASDAQ Trading » Posts in 'low latency execution' category

Furures Trading Software Drawing Tools No comments yet


An overview of the Drawing Tools available with the NinjaTrader’s futures trading platform’s advanced charting suite.

Visit TradersPlatform for a 30 day trial of NinjaTrader with the Rithmic data feed:
http://www.tradersplatform.com

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results

Level 2 Time and Sales for Futures Trading Using NinjaTrader No comments yet

An overview of the lesser known analysis tools in NinjaTrader 7′s futures trading platform, including, Level II and Time and Sales.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results

Real Time Trading Simulation Engine using NinjaTrader No comments yet

When doing sim trading in futures you want to come as close was possible to real time trading. Watch how it is done with NinjaTrader.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results

Risk Analysis Tools for Traders Using NinjaTrader No comments yet

An overview of the Monte Carlo simulator, a risk-analysis tool provided by NinjaTrader.
Take a look as to how to view it before you implement your system live.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Super DOM | NinjaTrader 7 No comments yet


An overview of NinjaTrader 7‘s Super DOM window. The DOM window is the de facto standard for some futures traders.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

 

Emini SP Trading Platform- How Do you Choose One? No comments yet

How Does one choose a Trading Platfrom?

You should strive to find a platform according to your needs: experience, frequency of trading and technical skills. Some of the platforms are free, while other has a cost associated with them. Also, consider that some futures software companies provide both free and paid versions of their software, so you should become familiar with both version of the platform to make sure you do need the paid version. Also, consider whether you actually do need all the features that a platform offers before you go through any expense.

Here is a general guide to choosing a platform:

Stability: Technology is imperfect, and platforms are software. Make sure that during your demo period you run your program along with all the other programs that you must keep along. If there are programs that you don’t need during the trading hours disable them to allow full capability of the platform along with the data feed it provides. Ideally, during trading hours you should trade on a platform while everything else is disabled, such as: instant messenger, emails, browsers and other consuming programs that could affect the stability and feed execution.

Visual Appeal and Usability: It is very important that you could navigate through platform to discover the ease of execution, pulling the charts, depth of market and the ability to keep track of your trades. It does take time to discover all the features of the platform, but most basic features should be discovered upon point and clicking.
Beginners in particular should be looking for platforms that have a visual appeal where simplicity is applied while more progressive traders should focus more on the technical features.

Data Feed: Platforms should allow a choice when it comes to a data feed. You should be seeking low latency for fast execution and unfiltered data for the performance of your strategy.

Lastly, whatever software you choose PLEASE make sure you take the time to learn the software, it’s features and any potential bugs it might pose for you.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results

Latency cost for Futures Traders Part 2 No comments yet

Latency cost will occur between the order submission and the actual price execution. The most substantial cost occurs on order that are “Market” order where a trader would seek an immediate execution. This is what traders call “slippage”, however latency also has costs associated with Limit Order.

Limit orders get executed on a price-time queue. Those traders who use Limit as entry or exit and do not have a low latency solution, will experience a further delay at different price levels and miss the order all together. Consider that if prices move quickly, traders that have delays will be less likely to fill their new limit orders as the cancel/replace orders get queued again further behind the traders who had low latency solutions. Traders might not get filled at all or just get partial execution.

The cost of latency for futures traders who use liquid markets as the eMini S&P,Bond futures, currency futures,etc explains why a demand for low latency technology could be increasing.
Using low latency solutions is an advantage even for those who have might have less latency cost as used in swing trading and long term methodologies.

There is no total elimination of latency as market conditions also play a big role, along with external factor, however here are some method that you could POTENTIALLY decrease latency:

1) Use method that require less transactions and higher time frames where cost of latency might affect a trader less.
2) Plug a data feed such as Rithmic to your trading platforms. Please read here about the fast capability of order dissemination: Low Latency Futures Trading
3) Use a platform such as NinjaTrader because it can facilitate Rithmic. In addition, Rithmic provides unfiltered data which is important for those who will trade on a tick by tick data.
4) If you live in far location, also consider a NinjaTrader hosting solution

Prior to deciding whether you use one solution over another, you could use a demo and decide if the use of one technology over another would be advantageous to you.

Trading in futures and options on futures involves substantial risk and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Latency cost for Futures Traders Part 1 No comments yet

Futures traders might not be informed about the cost that arises from the latency (speed) of their execution. However, they pay a very significant cost even if they don’t utilize day trading, frequent buy and sells, or strategies that one might perceive to have on his/her strategies. The systematic cost associated with the latency cost could be significant and could turn a theoretical strategy, which is profitable to unprofitable in real life.
When you place a “Market Order” in the futures market, the price of execution (fill) could be very different from where you have observed the best bid/offer.  This “slippage” has a tremendous effect on the bottom line of any strategy. Traders can place limit orders, however delays in placing, updating and cancelling orders could be a very costly effect as well. The speed of execution could add additional cost to futures trading.
Why would a trader experience delays in execution?

1) Geographic location (proximity to the exchanges)

2) Speed of Internet transmission (your ISP provider)

3) Hardware (your computer)

4) Server locations for the platform (data)

In the next section (part 2) we will address possible solutions to latency and execution.

Trading in futures and options on futures involves substantial risk and is not suitable for all investors. Past performance is not necessarily indicative of future results.

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