Why You Need a VPS for Algorithmic Trading
Imagine this: You're in a trade with 5 contracts. You're up $1,000. Suddenly, your power flickers, your internet drops, or Windows decides to force an update. Your connection to the exchange is severed.
Market price moves against you. You can't close the trade. By the time you get back online, that $1,000 profit is a $2,000 loss.
This is why professional automated traders use a Virtual Private Server (VPS).
What is a VPS?
A VPS is essentially a powerful computer that lives in a data center, running 24/7. You access it remotely from your laptop, phone, or tablet.
Why It's Non-Negotiable for Bots
- 100% Uptime: Data centers have backup power generators and redundant internet lines. Your bot keeps running even if your house loses power.
- Speed (Latency): In trading, speed is money. We recommend VPS providers located in Chicago (like Ninja Mobile Trader), right next to the CME exchange servers. This ensures your orders get filled faster than the guy trading from his basement in Florida.
- Freedom: Once your bot is running on the VPS, you can close your laptop and walk away. You don't need to leave your computer on all day, heating up your room.
Recommendation
Don't be cheap with your business infrastructure. A good VPS costs ~$30-50/month. One bad execution due to lag can cost you ten times that amount.
Risk Disclosure & Disclaimer
Educational Purposes Only: The content provided in this blog is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Young Money Investments is not a registered investment advisor, broker-dealer, or financial analyst.
Risk Warning: Trading futures, forex, stocks, and cryptocurrencies involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and as a result, clients may lose more than their original investment.
CFTC Rule 4.41 - Hypothetical or Simulated Performance Results: Certain results (including backtests mentioned in these articles) are hypothetical. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
Testimonials: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
