Using a VPS-server in trader’s work

Let’s talk about virtual servers and their use in trading financial instruments. We will find out what a virtual server is, how it can help a trader and whether it is worth paying for the functions and features it provides.

What is a VPS server?

VPS is an acronym created from the name of the Virtual Private Server service. If the words are translated into Russian, we get approximately the following phrase: virtual-private server. The server is also called a dedicated server. In this case, the service is designated by the abbreviation VDS – Virtual Dedicated Server.

VPS-server is a computer of high performance with a large amount of disk space. The owner of such equipment offers everyone to use the necessary part to store data and run any applications. Taking advantage of the service, the user gets a virtual computer with the redistributed amount of RAM, hard disk space, and a fixed CPU capacity. The advantage of using a remote computer is independence from power supply, availability of Internet connection and other problems, connected with application of computer equipment at home.


Why do traders need VPS?

Many market participants use scripts and experts in trading to ensure constant control over the market situation. To work to the full extent these programs require constant access to Internet, a working computer and a running trading platform. Such conditions are difficult to provide at home, that’s why traders use VPS services.

Advantages of virtual server

  1. There is no need to keep a powerful home computer turned on around the clock. Hence – energy savings, no nightly noise from fans of the cooling system and load on the network.
  2. The trader does not have to worry about the automated trading system failing, wrong stop-orders being placed, a deal being opened or closed at the wrong time because of a power outage, computer failure or an Internet failure.
  3. You can use your home computer without worrying about overloads, glitches, random shutdowns. All this will not affect the functionality and profitability of the automatic trading system.

VPS server selection

Virtual servers differ in technical characteristics and functionality, which determines the cost of using the equipment. It is necessary to choose the service in accordance with the requirements of the automatic system used in trading. Only in this way, a trader will be able to avoid software failures and achieve the best performance from it.

For a correct choice take into account the following factors

  1. System. Virtual servers work under different operating systems. First of all, you need to make sure that the appropriate software is installed. For example, Metatrader version 4 and 5 are trading applications for Windows.
  2. Power of the equipment. If a trader is going to trade, which requires simultaneous launching of several trading platforms, a virtual server must be selected with spare computing resources. The equipment must be able to cope with simultaneous trading of robots, running on different terminals, without overloads.
  3. Technical support. In order to quickly solve problems, which appear in the process of active use of the server, you need operative and professional support. Otherwise, even the installation of the terminal can take a lot of time and effort for a person who is well-versed in the foreign exchange market and is not familiar with the intricacies of using IT equipment.
  4. Reliability. A virtual server, like a home computer, requires a constant connection to a power supply and the Internet. The owners of reliable servers in order to avoid failures use different protection systems: the emergency power supply system, backup, and others. You can choose the right option by the number of positive and the presence of negative feedback from customers.
  5. The cost of leasing equipment. For the trading robot, capable to bring a stable profit, the server cost from $20 to $50 per month is suitable. Select the variant based on the capabilities of the trading robot. Do not spend money to rent a virtual service for a trading system that is unable to generate income.

Use virtual equipment only for working on a tested, promising strategy. If an automated system has not been tested in real trading and has not shown good results on historical data, you should not install it on a VPS. Use your home computer. Once the strategy is optimized, you can rent a virtual computer.

Typically, the server owners offer several rates, different in cost and capabilities of the equipment. To test it is desirable to take the cheapest option. If the service turns out to be of decent quality, at any time, the trader can switch to a more productive server by buying an expensive tariff.

Kevin Doran

I have been trading forex since 2015. Over the past few years, I have tried and tested all the most popular Forex Brokers. I publish my reviews to help you choose a reliable broker and reduce your risks.

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