Should You Run TradersPost and TradingView on a VPS Near CME?

Fact checked by
Mike Christensen, CFOA
November 26, 2024

Some traders wonder if running TradersPost and TradingView on a VPS close to the CME (Chicago Mercantile Exchange) could improve trade execution speeds. While this makes sense for high-frequency traders (HFTs), it is not relevant for most retail traders using TradersPost or TradingView.

Why a VPS Near CME Won’t Improve Execution

  1. TradersPost and TradingView Are Cloud-Based
    • Users do not control the location of TradingView’s or TradersPost’s servers.
    • Running a VPS near CME doesn’t affect where TradingView processes signals or where TradersPost executes trades.
  2. Retail Trading Is Not High-Frequency Trading (HFT)
    • HFT firms operate in the sub-10 millisecond range using FPGA hardware and colocated servers inside exchanges.
    • TradersPost operates on a 1-2 second execution delay, making a VPS location irrelevant.
    • Retail traders focus on strategies with 30-minute to multi-hour trade durations, not millisecond advantages.
  3. Institutional Trading Uses Direct Market Access (DMA)
    • Large firms don’t use TradingView or standard retail broker APIs.
    • Their strategies are embedded directly into exchange hardware for ultra-fast execution.

What Should Retail Traders Focus On?

Instead of worrying about server proximity, traders should focus on:

  • Developing robust strategies that don’t depend on split-second execution.
  • Risk management to ensure sustainable profitability.
  • Understanding market trends rather than chasing speed advantages.

As Adam Grimes put it:
"The list of always true things in trading is very, very small. In fact, it might just be: don’t violate your risk management parameters."

Conclusion

Running a VPS near CME will not improve TradersPost or TradingView execution speeds because these platforms are cloud-based and do not offer colocation advantages. Instead, traders should focus on strategy development, risk management, and long-term market trends, which are far more critical to success than trade execution latency.

Excerpt

Running a VPS near CME won’t improve TradingView or TradersPost execution due to cloud-based processing. Instead, traders should focus on strategy development and risk management for long-term success.

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