What is VPS?
VPS – Virtual Private Server is nothing a but Windows/Linux Machine hosted in a datacenter where you can run our applications/Website 24×7. And the user will have remote access to control the Server from his local machine.
How VPS supports Autotrading?
Generally if you are planning to run your autotrading system 24×7 without human intervention its quite difficult to do it in your local machine due to lots of complexities involved. Some of them are Internet Outages, Power Failures, System Errors, Hardware Failures. During those critical times when you have such outages and you have Big positions left in the system un-noticed definitely you are likely to get in trouble. In such a situations VPS comes to rescue.
Reduce your slippage. This is one way in which a VPS server can benefit you even if you place all your entries manually and don’t use automated trading. A VPS can execute your trades more quickly than your computer can because it is much faster transmitting the orders. The result is that you experience less of a delay and less slippage. As we all know, slippage costs money, sometimes a lot of it, so this is a great way to reduce your losses and unpredictability.
So if you are planning to run a complex algorithm then you can place your completely Autotrading System (Trading analysis Software+ Trading Terminal )over the VPS preferrably windows VPS as most of the trading application and analysis software runs mostly in windows platform which will cost in the range of 20-80$ per month depends upon the amount of RAM you require.
Here is a infographic how forex traders use VPS to host their Metatrader 4 platform to perfrom autotrading. Similar way you can host your trading system in the VPS/Cloud and you can run your algo model hassle free.
Popular Windows VPS Providers
Godaddy, Hostgator, Rackspace, Amazon(VPS over Cloud) are some of them among the populuar vps providers.
[ Image Credit : Earnforex ]