Super-fast order placement is the best part of APIBridge, and makes it stand apart from any other algo software. We proudly claim that it is the fastest software available to Indian retail traders for system based trading.
In APIBridge message window, you can see all messages upto millisecond time stamp. We want you to see what’s happening at millisecond level (1/1000th of a second).
Importance of Latency in Trading
For automated trading, latency is key contributor to Slippage.
- Suppose you decide to buy Nifty when its trading at 9000. BUT by the time you punch order and get confirmation, you BuyPrice is 9010. In this case, slippage is 10 rs.
- Suppose you buy a stock at 100 and put SL at 99 (trigger price). Your SL gets triggered but you get SellPrice of 98.50. In this case, your slippage is 0.50.
- If you make 5 trades per day by 10 orders, and slippage per order is 0.2%, then you are losing 2% per day!!!
- If you make 2% per day, in a year you can grow your money 100 time!
APIBridge places order within 50ms! Faster than anything else compared.
The processing latency of APIBridge, for normal use, is under 100 milliseconds. That is, the time difference between Signal Received and Order Placed. This depends on the number of symbol rows under Symbol Settings. If you can hack it to send signals without processing, it will come under 2ms! For up to 5 rows, it may vary from 20 – 200 millisecond based on the speed of your computer.
We tested using TradingView (Chrome v83.x, Chrome Extn v3.4) and average computer (i5 4th Gen, 8GB DDR3, Win 10). With 5 rows, the order placement time comes under 50ms as shown in above pic. APIBridge truly protects the privacy of your trading strategies because data is stored locally in your computer and not tracked by Algoji.
Understanding Complete Order Placement process
IMPORTANT: Most of the latency in trading comes from internet speed. If your strategy is sensitive to latency, we suggest using VPS in Mumbai data center.
Step 1: APIBridge receives Signal and sends Order to your broker. This is super-fast.
Step 2: The order travels over internet to your broker server. This may take 10ms to 1500ms. Or may not happen at all (yikes)! The worst is over at most places in India due to broadband internet services. To test propagation latency through ping test, read about latency in full detail.
Step 3: Your broker processes the order and sends it to Exchange. This is super fast and usually happens under 5ms
Step 4: Broker replies to APIBridge with Order Number. It involves latency by Broker API to process the request for APIBridge. Additionally, this again involves your internet latency (hmmm)
Step 5: APIBridge sends a request to Broker to with Order Number to ask about Order Status – whether its Completed, Open or Rejected. This again involves internet latency (aha!)
Step 6: Broker replies to APIBridge with Order Status. This involves latency by Broker to process request, AND latency over internet.
And you finally SEE the trade happening. The overall process may make you feel there is considerable delay. Want more technical details? Read about latency in full detail.
Why do I sometimes see order status with delay up to 2-3 seconds?
Time taken to SEE your order traded can be lot more than your time taken for order placement. Because it includes the time for fetching order status also. Time taken for order traded also includes latency from internet connection (called propagation latency) and processing latency at Broker server.