Co Location

[frankiebishop]

Evening - I used to trade on the financial and commodity markets and all of a sudden, our office stopped getting as many fills - vols were 70-80% down. Eventually the exchange were contacted, came to our office and we finally got out of them that certain firms had their servers 'co-located' in the same buildings as LIFFE!

So, i know that it CAN make a difference. But does it (I'm a scalper, so constantly in and out) and how much does it cost and how do I go about it, if it is still being offered?

Thanks

Frankie

[Euler]

The same concept doesn't really exist on Betfair. The architecture of the exchange doesn't really allow any benefit from co-locating, even if you could. Also, the Gambling Commission outlaws any specific advantage. It has to be a level playing field.

[Anbell]

Evening - I used to trade on the financial and commodity markets and all of a sudden, our office stopped getting as many fills - vols were 70-80% down. Eventually the exchange were contacted, came to our office and we finally got out of them that certain firms had their servers 'co-located' in the same buildings as LIFFE!

So, i know that it CAN make a difference. But does it (I'm a scalper, so constantly in and out) and how much does it cost and how do I go about it, if it is still being offered?

Thanks

Frankie

The good people at BF AUS suggest that our bots are best served if the VPS is in Dublin to reduce the ping time, so I guess it makes a difference for some?

[ShaunWhite]

The good people at BF AUS suggest that our bots are best served if the VPS is in Dublin to reduce the ping time, so I guess it makes a difference for some?

It definately does for certain types of HFT strategy/execution. Betair used to route all traffic via Reading for DDOS protection but now that's moved in-house, AWS Dublin (about 2km from Betfair datacentre) is the lowest ping option. Manual or basic Guardian automation wouldn't benefit noticeably, but 10ms can be the difference between breakeven and profit if you're into market microdynamics.

[Euler]

Personally, I always think trying to be the fastest is a waste of time because somebody will always be slightly ahead of you for some reason.

Far better to be cleverer than faster.

I've never relied on being fast in my entire career, and that's probably why my edges have been persistent. I've seen many who rely on speed suddently wake up one morning to find their edge is gone.

[ShaunWhite]

Yes, it's not about being fastest, it's about being the fastest out of those who are right.

But it depends on your trading style, I just prefer the simplicity of a single strategy concept that works everywhere, and when/if I wake up one day and it doesn't work anymore, I'll find something else.

What I will agree with is that point EV is getting harder to find, and structural EV is the perennial that's always going to endure.

[ForFolksSake]

What is more important is minimising UnMatched/Matched bets ratio

[jamesedwards]

What is more important is UnMatched/Matched bets ratio

Risky.

If you start chasing matched bet % you can easily end up eroding your +EV.

[ForFolksSake]

What is more important is UnMatched/Matched bets ratio

Risky.

If you start chasing matched bet % you can easily end up eroding your +EV.

Edit: UnMatched/Matched ''back' bets ratio OR UnMatched/Matched 'lay' bets ratio.

Of course you wouldn't chase Unmatched 'losing' bets

[ShaunWhite]

Queue position, and then when to cancel offers are key. I think those were mentioned in Peter's posting about placing an exit first.

[ShaunWhite]

What is more important is UnMatched/Matched bets ratio

Risky.

If you start chasing matched bet % you can easily end up eroding your +EV.

Exactly, if your orders are snapped up too often you're probably too cheap.

[ForFolksSake]

What I will agree with is that point EV is getting harder to find ...

You need to put your 'Thinking' hat on top of your 'EV' hat

[frankiebishop]

Thank u all so much for the replies. That's helped me a great deal

Frankie

[ForFolksSake]

What is more important is UnMatched/Matched bets ratio

Risky.

If you start chasing matched bet % you can easily end up eroding your +EV.

Exactly, if your orders are snapped up too often you're probably too cheap.

Indeed !

[frankiebishop]

So, to be clear, is 'co location' the same as having a VPS?

Or is a VPS something different?

Which 1 of these 3 would be the best?

https://thebetmatrix.win/betting-bot-vp ... ps-betvps/

https://www.betangel.com/vps/

https://www.tradingservers.co.uk/

Also - I don't really use bots. I would like to try a small size 1 for 1 play in the future, but not now.

Thanks for the advice - if I sound stupid, I'm not technical.

Frankie B