Trading Binary Options can be a time consuming affair. You need to constantly monitor your positions and take the time to understand the dynamics involved.
In fact, trading Binary Options can be a full time affair with those that have experience in the industry benefiting the most.
Indeed, some of the best Binary Option Professionals on the market make use of a powerful tool that is actually available to everyone. Yet, most people shy away from these tools as they appear slightly complicated.
One of these tools is a VPS, the most important piece of trading technology available to the Pro.
What is a VPS
A VPS (Virtual Private Server) is a remote virtual machine or computer that is usually used in the web hosting business. However, as people have been developing automated tools that required a machine that was dedicated to that task, the VPS has expanded beyond web hosting.
One of the automated tasks that people tried to allocate to a VPS was algorithmic trading. This was in fact something that was always present with algorithmic hedge funds who had their own dedicated servers that did the trading.
However, there were many traders who developed their algorithms but did not have the benefit of a dedicated server in an office. These could not run the algorithms on their own personal machines. This was because they did not have the computing or networking power to complete the tasks required by these algorithms.
It was as this point that these traders decided to rent the computing power that they required for this. Ever since then, most serious Forex brokers began renting VPSs that traded for them.
This was also most recently replicated in the Binary Options industry as those same forex traders recognised the benefit of VPS Binary Options Trading
What are the benefits of a VPS?
Many traders may be asking why they need to trade with a VPS? This comes down quite simply to your goals as an algorithmic trader. Yes, you can run a trading algorithm on your laptop assuming that you have the programs running 24/7, but this is indeed unrealistic.
Moreover, the speed of the internet in your home network is not even in the league of that in a highly connected data centre where the VPS is held. This is especially important for the trader that needs to enter their trades in a limited window when an opportunity for entry opens.
Here are the benefits of VPS Binary Options Trading with your algorithms.
Trade at all times of the day
The advantage of the VPS is that you can leave it running 24/7. Unlike with your home PC, a VPS can be left on for extended periods of time and does not require being restarted regularly. Once you have logged out of your VPS and set the trading algorithms up, it gets to work trading.
Trade from Anywhere
One of the many reasons that people choose to trade Binary Options is because they are able to trade from a number of different locations around the world. Trading Binary Options allows them the benefit to travel the world and log in to trade their accounts. However, for the algorithmic trader who uses advanced trading technology, it can be hard to just pick up and travel if you have your PC trading in an automated fashion.
When you are VPS Binary Options Trading, there are no restrictions on where you can go and what you can do. The VPS is held in a data centre and you can access it from any location in the world through a remote desktop connection. The trader can log into the VPS in the evenings and check the trading positions, make tweaks and continue with their travels.
Trade despite Outages
We can all admit that there have been times when we have been unable to trade due to either power outages or network downtime at our houses. This is indeed quite frustrating as there is nothing worse than losing connection to a platform when your broadband falls or you have an electricity cut at your home.
A VPS is held at a data centre which has to have completely uninterrupted power supply as well as network connectivity. Hence, you will not have to ever worry about potential downtime on your positions.
If you were worried about any sort of security issues when trading your account on a VPS, this is unnecessary. In fact, the VPS and the data centre are likely to have much better security protocols than you have on your home PC.
Due to the fact that these VPS servers are used for web hosting and other business critical purposes, the security and anti-malware systems in place must be extremely robust. Hence, you can feel pretty assured that the VPS that you are renting will have the latest in security and antivirus protections.
How Choose a Binary Options VPS
Setting up a VPS usually requires the trader to rent a VPS from a Hosting provider. The trader could either order a standard spec VPS from a hosting provider or rent a specialist Forex or Binary Options VPS. The latter could be an option should you wish to include a number of other services on the VPS such as EAs or other trading programs. The VPS provider can assist you setting this up. However, regular hosting can be cheaper and there is more scope for tweaking the offering.
If you are going to be using a normal webhost, you will need to decide on the software that you want on the machine. In terms of server operating systems, the two most used are Linux and Windows. Hence, the trader could either rent a Windows VPS or a Linux OS based one. It is important to point out that the server choice should depend almost exclusively on what software is best known to the trader.
The trader should also determine the technical requirements on the server such as Ram, Hard drive and CPU power. Of course, if you are only going to be using the VPS for running one programme then the entry level server would work. If you want minimum latency on the orders then you should consider ordering a server that is located in a data centre that is relatively close to your broker.
How to set up a Binary Options VPS
Once you have purchased the VPS, you will be sent the login details of the machine via email that will enable you to access the server and connect to the machine. Once you have remote access to the VPS, you can download and install the Meta Trader that is applicable to your server operating system.
If you are running another trading script then you will need to see which server software that it is best suited too. Once the trading programs have been installed, you need to log into your account while on the VPS and set the trading parameters as you would if you were using your normal PC.
You can then simply close out of your remote desktop connection and allow the trading algorithms to operate. It is of course wise to check in on your account every 24 hours just to make certain that the algorithm is trading in a reasonable fashion.
Although the VPS should theoretically be on 24/7 there do come times when the server provider reboots the PCs just to make sure that they are up to date with the latest software etc. This is, however, only done on weekends in periods of least traffic or usage.
How to use your VPS
Once your VPS is up and running and you are ready to start trading remotely, you have to decide on what you would like to use the VPS for. In the case of the of a Forex trader, you may want to use it with Meta Trader 4. This could allow you to either code algorithmic trading scripts that make use of signals or you could make use of an Expert Adviser.
Alternatively, if you are trading binary options, you could make use of signal services that trade on a VPS in an automated fashion. These allow the VPS trader to make use of third party signals that can trade on their account with the VPS that they have set up. This will usually be on the third party’s dashboard where the signals are then replicated on your trading account by using the broker’s API.