In the world of professional arbitrage trading, traders, who use VIP Arbitrage Software from BJF Trading Group can choose between a TCP or cross-connect [If you have LD4 or NY4 VPS with UltraFXVPS , and it's IP address starts with "185.95...", or/and "45.158... "with the new network technique we provide you ability to receive quotes from our feeder with even ultra low latency comparing to common feeder connection] setup.
With that said, our cross-connect feed is known for being faster and more up to date, yet many systems still rely on TCP to receive fast quotes.
TCP protocol explanation
Transmission Control Protocol is connection-oriented, meaning once a connection has been established, data can be transmitted in two directions. Protocol has algorithm to check for possible errors and to guarantee data will be delivered in the same order it was sent, making it the perfect protocol for transferring information like files, images, web-pages.
But while TCP is instinctively reliable, its error checking algorithm also result in a larger delay, translating to greater use of the available bandwidth on your vps.
Our cross-connect method explanation
It is a simpler, connectionless Internet protocol, because it is not necessary to check errors and it is not necessary to check if data will be delivered in the same order it was sent. There is no overhead for opening a fast feed connection, maintaining a fast feed connection, or terminating a connection; fast quotes is continuously sent to the recipients, whether they receive it.
This connection type is not ideal for a lot of tasks, it is largely preferred for fast feed distribution for arbitrage or news trading.
But because our cross-connect protocol avoids the unnecessary overheads of TCP transport, it’s incredibly efficient in terms of speed, and much less demanding of not stable networks.
Real test TCP vs our cross-connect
To make real speed test between feed distributed via TCP and cross-connect, we have installed 2 instances of VIP MT4 Latency arbitrage with on the same VPS, and accounts was opened with the same broker. 1st instance of VIP MT4 Latency Arbitrage Software is connected via TCP and 2d via cross-connect to the same fast feeder (the same IP:port). Now we have opportunity to compare orders opening time between two setups.
Based on real test we can make conclusion that cross-connect feed distribution method is faster than TCP on approx. 7ms
List of software products that can be used with cross-connected fast feed:
1. VIP MT4 Latency Arbitrage Software learn more...
2. VIP MT5 Latency Arbitrage Software learn more...
3. VIP MT4 Lock Arbitrage Software learn more...
4. VIP Multi_leg Arbitrage Software with fast feed [will be ready 11 November 2020] learn more...
5. DAAS [ beta version will be available 1st December 2020) learn more...