Latency and why it matters

Latency matters differently for a scalper, a session system, and a slower swing EA. Measure the path before paying for speed.

Define the path

Latency can include signal calculation, terminal processing, network travel, broker gateway handling, queue time, and fill confirmation. A claim about one ping time does not describe the entire order path.

Measure timestamps around signal, request, acknowledgement, fill, and position update when the platform makes them available.

Match speed to strategy horizon

A strategy holding for seconds may be sensitive to milliseconds and queue position. A system holding for hours may be more affected by uptime, spread, and correct session handling. Optimising latency without knowing the strategy's sensitivity can add cost without improving results.

Measure real order round trips from the intended VPS.
Compare latency during calm and volatile periods.
Track missed or delayed fills, not just ping time.
Prioritise stability and recovery for slower systems.

Do not turn latency into a hidden edge claim

A faster connection cannot guarantee a better fill when liquidity is changing or the strategy's price is already stale. Include latency assumptions in research and review them after deployment.

If performance depends on a narrow timing advantage, the system needs more execution evidence and stricter operational monitoring.

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