ORDER FLOW AND PRICE

Just a brief post showing a couple of scalps;
but illustrating the TradeFlowRisk indicator
on a parallel chart.

TradeFlowRisk yields the NUMBERS at Short
and Long Risk; and such measurements
would be used to choose Pullback opportunity.

hyperscalper

Great work - is there a penalty in latency for using windows based on OS and ninjatrader software for scalping?

I am very interested in this area as well.

Are you asking whether Windows Server is fast and/or whether NinjaTrader is fast enough for Scalping?

I use a Rithmic Paper Trading full Depth of Market data feed, since analysis of the DOM is a major predictive source of data. With these feeds, available through LeeLoo or Apex, you can see an "arrival latency" of roughly 20-30 milliseconds based on the timestamps in the data feed; with a server co-located <1 msec from the futures exchanges.

So you are a slight bit behind the market; which normally is not an issue for retail scalping. However, the decision logic must also be colocated, and automatic triggers need to be used to preserve the advantages of co-location.

Responses to order operations (either simulated or live) should also be less than about 10 msec; so from Limit placement to "working" reply status, depending upon broker.

The trader may be very distant from your server system, using remote desktop; but needs to delegate the strike decisions to your custom strategy software hosted within NinjaTrader. This is only for very advanced developers, using "unmanaged" orders in NinjaTrader and thus handling all aspects of Order Entry plus incoming Market Analytics decisions on which you will be basing your Orders and managing your Targets, etc.

Such a system could be a year long development, or in my case 2.5 years of work, much of which is focused on Analytics so that the Order operations will actually be profitable !!!

I lease a Windows Server system from a Chicago hosting provider; and 2 Virtual Machine licenses are included, so that means I can create 2 additional Hyper V OS VM instances (each of which can run 1 copy of NinjaTrader) for no increase in the monthly leasing cost. However that is self-managed, for someone with moderate system management experience. So, in a sense, 3 machines for the $200/month price of 1

Hope this helps !