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Strategies & Market Trends : DAYTRADING Fundamentals

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To: funk who wrote (3346)8/28/1999 3:31:00 PM
From: Robert Graham  Read Replies (1) of 18137
 
I understand what you are saying here. But I want you to take this into consideration. Take QCharts for instance. QCharts has been having many problems delivering the data to the end user, the trader. This is indeed a problem for the trader, particularly when the problem of slow or no data which can go on for a comparatively long period of time for intraday trading. I remember watching a very good trader in the middle of an S&P Futures trade. You know how quickly the price can move in your disfavor if the trader is not careful with trade execution which is a very sensitive to timing in the fast moving market of the S&P Futures. QCharts went out on him at a very important point in the trade where the price could move against him. Money can be quickly lost at this point. As luck prevailed, the trader was not hit during this "black out" of QCharts. But this did not need to be the case.

Problems with Internet data feeds occur in two places. One place at the source which is the provider of the data feed. There can be both capacity issues, and performance issues related to dealing with the spikes in demand that can occur during the day. Also the cause can be congestion on the network between the provider and the end user. This can be one of the many between the provider and the trader that facilitates the routing of information from the provider to the end user across the myriad of possible paths made available by Internet. Then there is the PC itself to consider that the trader is using.

The source of slow or no data being the result of a piece of equipment between the data provider and the trader is one cause of trouble that most do not seem to consider. This is one cause of the problem entirely out of control of both the end user and the provider. As more people pile onto the Internet, this problem becomes more pronounced and persistent. I suspect, depending on the time of the day, this is responsible for much of the data outages and poor response times that people experience on the Internet. No amount of money spent on either side will solve this problem, by he provider in large machines on a redundant setup and by the end use on a powerful PC and fast link to the Internet. There is no solution to this aspect of the problem except to have a direct connection to the provider.

Bob Graham
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