Secret News Weapon Case Study

SNW Screenshot

Secret News Weapon, is a powerful forex news spike trading tool enabling you to get important economic report data for all major countries and rapidly convert that into automated order execution on your forex trading platform. Simply put, the Secret News Weapon receives the fx news as fast and in most cases faster than anyone else, and within milliseconds will automatically click buy or sell for you based on the economic data.

Neutrino Workstation

Neutrino Workstation is a sophisticated hosted workstation for online trading. Neutrino is engineered to consistently maintain very high performance levels by leveraging technologies being used in the largest financial marketplaces.

Neutrino far exceeds the abilities of hosting services like VPS and dedicated server, as well as that of any setup a private trader could possess in practice. We know of no publicly available service comparable to Neutrino at any price.

Neutrino Workstation significantly enhances the performance and profitability of Secret News Weapon by:

  • Reducing the total end-to-end latency, typically by tens of milliseconds
  • Eliminating numerous points of failure and unreliability in the network path
  • Providing a high performance, secure, and always-on platform for software operation

The Problem:

Below is a diagram demonstrating the system data flow experienced by a trader running SNW on standard. Take note of how many moving parts there are in this system, each of which adds latency.

SNW_typical_flow

The Solution:

Below is a diagram demonstrating the system data flow experienced by a trader running SNW on a Neutrino Workstation. Take note of how many fewer moving parts there are in this system, and how much more direct the data flow is. This results in a corresponding reduction in latency and improved performance. Also of note is that SNW servers are located within our data center, and therefore steps 1 & 2 occur near instantaneously (< 1ms latency).

SNW_neutrino_flow

The Result:

The net improvement of streamlining the system data flow is a significant reduction of latency, which means that your trade orders are reaching your brokers gateway 20 – 30% faster. This huge improvement is achieved regardless of:

  • Your physical location in the world
  • The speed of your PC hardware or broadband internet connection
  • The broker or trading platform you use

No matter what, where, or how you are using SNW, you will achieve better profitability and more consistent results in your trading by pairing SNW with Neutrino. The improvement is often so great that the extra profit on a single trade can pay for your Neutrino bill for a month.

 

Exploring the Data Flow in More Detail

Step 1: When a news event occurs the SNW application running on a Neutrino Workstation is alerted with near zero latency. The data travels over a special path called Nuveum TradeNet with is a very low latency private switch fabric. All Neutrino Workstations have a high speed interconnect with Nuveum TradeNet, and can talk to service providers (such as SNW) that are also attached to TradeNet near instantaneously (approximately 0.15 milliseconds).

Step 2: The SNW application and your trading platform are running on the Neutrino Workstation. So SNW receives the news event at TradeNet speed, which in turn triggers a trade on your trading platform near instantaneously. Neutrino Workstation is highly optimized for low latency applications, and is as fast and often faster then even the most expensive trading workstation a trader may have at home or in the office. By the time step 2 is complete, approximately 0.05 milliseconds has elapsed.

Step 3:  Within 0.5 more milliseconds, the trade execution order has traveled over high speed fiber to reach the internet core. It is now in route to the broker gateway. Total time elapsed to this point is 0.7ms.

Additional time is required to transit the internet and reach the broker gateway. The actual time is dependent on physical distance traveled. Regardless, the trade is already assured to reach the broker gateway in the fastest possible time the distance can be traveled, ahead of other traders running SNW without Neutrino Workstation, and certainly ahead of other traders not using a high performance spike trading tool like SNW.

This is why it does not matter where the broker gateway is in the world, the goal is simply to be the first trade to reach your broker after the news is released. Neutrino Workstation makes this possible.

Microsecond Trading

Neutrino Workstation (in concert with the Nuveum platform) provides the closest experience to true microsecond trading a retail trader can achieve. Let’s look at latency numbers mentioned above when converted to microseconds. Keep in mind that a microsecond is 1 billionth of a second (1/1,000,000,000).

Step 1:  150 microseconds
Step 2:
50 microseconds
Step 3:
500 microseconds
Total time to reach internet core:
700 microseconds

To put this in perspective, a fast human reaction time is 200,000 microseconds. It takes your eye about 300,000 microseconds to blink. Relatively and absolutely, 700 microseconds is extremely fast, even when considered in computer time.

Once on the internet core the time a trade takes to reach the broker gateway is largely a function of distance. Yet this time factor is largely irrelevant. Regardless of your choice of broker, the combination of SNW and Neutrino Workstation provides a high degree of assurance that your trade will arrive ahead of others similarly timed to the news. In the area of spike trading, the goal is to get there the fastest in a relative sense. Your competition are only those traders using the same broker as you, operating in the same marketplace.

High Performance Broadband?

To dispel any notion that similar low latency may be achievable from a home or business internet connection, (even an expensive one) consider the following:

  • Broadband requires around 10,000 microseconds to reach the internet core, and often two or three times more.
  • Broadband experiences sporadic fluctuation of latency based on usage, micro-outage, and other factors.
  • The standard of performance required for web, video, and email are vastly inferior to the requirements of low latency online trading.

For real time (latency sensitive) needs of online trading, broadband is simply not in the race. Even a “high performance” broadband connection running on fiber remains woefully inadequate. The simple fact is that broadband networks are necessarily designed to be cost  optimized. This unavoidably results in compromises when it comes to performance. No broadband network operator claims their network is sufficient to carry for real time financial transactions, and any expectation that these networks should perform well in that capacity is simply misplaced.

 

VPS and Dedicated Servers

In recognition of the deficiency of broadband, many enterprising traders have turned to VPS and dedicated server solutions under the principle that these services are better connected to the internet. In general, these services do offer an improvement over broadband, though quality varies widely. Further, while (VPS in particular) focus on better “ping times”, generally ignored are the factors giving rise to substantial internal latency within their systems. In total, these services tend to offer gain offset by loss.
Only a purpose built service like Neutrino Workstation can achieve the absolute highest levels of performance obtainable and maintain such consistently. As good as any VPS or dedicated server may (or may not) be, the highly engineered Neutrino Workstation remains a superior solution.

Other Benefits and Advantages

There are still more advantages enjoyed by the trader using Neutrino Workstation. High security, freedom from untimely failures or interruptions, and connect-from-anywhere convenience are just a few. Learn more about the benefits and advantages of Neutrino, or review pricing and order yours today.