⚡ Speed isn’t optional in automated trading, it’s everything

In manual trading, a few seconds of delay might feel normal.

But for automated bots, even a few seconds can be the difference between profit and loss.

This is where Latency comes into play.

Why Latency Matters:

There are three critical stages where delays can be important:

📡 Signal Latency → The time between a market change and your system detecting it.

Solutions:

✅ Use real-time data feeds with low delay

✅ Optimize data parsing and preprocessing

✅ Implement lightweight logic for signal generation

✅ Use event-driven architectures instead of polling

⚙️ Execution Latency → The time between generating the signal and placing the order.

Solutions:

✅ Pre-validate orders (size, type, limits)

✅ Minimize middleware between strategy and execution

✅ Use asynchronous or multi-threaded order handling

✅ Reduce external dependencies (e.g., unnecessary
API/database calls)

🏦 Order Execution Latency → Time between sending an order and its actual execution.

Solutions:

✅ Set appropriate prices calibrated to the Best Bid and Best Ask

✅ Account for market liquidity and adjust order size accordingly

✅ Use market orders when necessary for immediate execution

✅ For large orders, use iceberg order types to minimize impact

In high-volatility markets, even small delays compound.

Optimizing latency at every stage gives your trading system a measurable edge.