Automated VPS trading

The serious trader who uses an automated trading software will want a sure and stable way for his trades to be executed under all conditions and at all times. Running the robot on a home computer bears considerable risks because in order for the robot to work the computer needs to be running all the time. Things like power going out or problems with the internet connection can have severe consequences on the trader’s account balance and the end results of his strategy.

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A good solution for all these problems is renting a virtual private server (VPS), where you get a space on a stable, fast and all the time 24/7 running computer.

It’s most often intended for advanced users, but any trader who wants to eliminate the risks in the execution of his automated trading strategy, or one who has computer power needs that a home PC just can not handle, can certainly benefit from using a virtual private server.

Essentially, it’s similar to running the program on your own computer, only the difference is, it’s a much more stable and faster computer. The trader has easy access to his trading platform on the server, by logging in with a username and password. Mobile apps are available with most VPS providers, so checking how your systems perform at all times is a breeze.

With most VPS service providers, you get a 99.9% uptime of your trading robot. They have sophisticated systems in place that ensure the machines will run non-stop. The servers use a powerful CPU, or even multiple CPUs, and have huge amounts of memory, thus running a lot of robots at the same time is not a problem, something that will be difficult to do on a home computer. The internet speed is guaranteed blazing fast, hence problems like slippage because of a slow internet connection are a part of the past. The operating system and installed software on the virtual private server are regularly maintained and highly secure. Trojans and viruses are of much smaller concern here than if you run the robot on your home computer.

So, do you need to use a VPS after all?

The answer will depend on the needs you have and on your trading strategy. If your robot uses a scalping method to trade the market then you may benefit from the speed of a VPS and a fast internet connection it has.

However, if you are just a regular retail trader with a few hundred dollars in your account, trading a simple low frequency automated strategy then it’s unlikely that you need to spend money on a virtual private server.

Prices for renting a virtual private server range greatly, with plans for retail traders starting from around $20 per month. Higher prices give greater power, stability and bandwidth usage to the user.