Algo Trading — Lesson 9: Demo to Live Infrastructure & Execution

9.1 VPS & Latency: Why Infrastructure Matters

Low latency reduces slippage and ensures orders execute at expected prices. A VPS close to your broker's server is essential for stable algo performance.

Latency Calculator

Enter your latency values to determine optimal setup:

PC → Broker (ms)

PC → VPS (ms)

VPS → Broker (ms)

Primary Latency (with VPS):5ms

Improvement vs direct PC:-75ms

Excellent: <10ms VPS–Broker latency is ideal for scalping and HFT strategies.

Tips:

Most brokers list their data center locations (e.g., NY4, LD4, TY3)
Choose VPS providers with servers in the same data center
Test latency with ping tests before committing
Consider redundant VPS for critical strategies

9.2 Account Types & Execution Costs

ECN accounts often have tighter spreads but higher commissions. Standard accounts have wider spreads but no commission. Calculate total costs to compare.

ECN vs Standard Account Comparison

Feature	ECN	Standard
Spread (typical)	0.0–0.3 pips	1.0–2.0 pips
Commission	$5–10 per lot RT	None
Total cost (1 lot EURUSD)	~$5–13	~$10–20
Execution	Market / STP	Instant / Market Maker
Min stop distance	Often none	May have limits
Requotes	Rare	Possible
Slippage	Both positive/negative	Usually negative only
Best for	Scalpers, HFT, high-volume	Swing, low-frequency

Execution Cost Estimator

Calculate your true trading costs per lot:

Pair Type

Spread (pips): 1

Commission ($/lot RT): 7

Slippage (pips): 0.2

Swap ($/lot/day): -1.5

Holding time (hours): 4

Entry/Exit Cost:1.90 pips ($19.00)Swap Cost:$0.25Total Cost:$19.25

9.3 Pilot Rollout: Phased Deployment

Pilot Rollout Planner

Never jump from demo to full live. Use a 3-phase approach: micro-live validation, partial capital, then full deployment with proven results.

Phase 1: Micro-Live

Trade with minimum lot (0.01) on live account to validate execution

Capital: 5–10% of target

Duration: 20–50 trades or 2–4 weeks

Gate: Execution matches demo within ±1 pip slippage average

Phase 2: Partial Capital

Scale to 25–50% of target capital if Phase 1 passes

Capital: 25–50% of target

Duration: 50–100 trades or 4–8 weeks

Gate: PF ≥ 1.2, Max DD ≤ limit, no unexpected behavior

Phase 3: Full Capital

Deploy full capital if Phase 2 metrics meet targets

Capital: 100% of target

Duration: Ongoing with periodic review

Gate: Continuous monitoring; scale back if metrics degrade

Target Balance ($)

Risk per Trade (%): 1

Average Stop (pips): 30

Max Daily Loss (%): 3

Max Weekly Loss (%): 6

Summary:

Risk Amount:$100.00Est. Lot Size:0.33Max Daily Loss:$300.00Max Trades/Day:3

9.4 Volatility & Liquidity Guards

Volatility & Liquidity Guard Builder

Live markets have variable conditions. Build protection rules to pause trading during unfavorable conditions.

ATR Percentile Min: 20%

ATR Percentile Max: 80%

Spread Cap Mode

Spread Cap (pips): 2.5

Slippage Cap (pips): 1

News Blackout Before (min): 15

News Blackout After (min): 15

Block trading during rollover hour (00:00 GMT)

Active Trading Sessions:

Sydney (22:00–07:00 GMT)

Tokyo (00:00–09:00 GMT)

London (07:00–16:00 GMT)

New York (12:00–21:00 GMT)

Protection Policy: • ATR filter: Trade only when ATR is between 20th and 80th percentile • Spread cap: Fixed at 2.5 pips • Slippage cap: 1 pips max • News blackout: 15 min before, 15 min after high-impact news • Rollover block: Yes • Active sessions: Tokyo (00:00–09:00 GMT), London (07:00–16:00 GMT), New York (12:00–21:00 GMT)

9.5 Broker Selection Checklist

Broker Selection Checklist

Choose a broker that supports algorithmic trading with good execution, regulation, and MT5 support.

9.6 Launch Plan Builder

Launch Plan Builder

Consolidate your infrastructure, costs, rollout phases, and guards into a single actionable launch plan.

Strategy/Bot name

Selected broker

Account type

VPS provider

Target live balance ($)

Risk per trade (%)

Phase 1 → 2 gate

Phase 2 → 3 gate

Protection policy summary

Planned launch date

Review schedule

Lesson 9 Quiz

Test your understanding with 3 questions. Pass with 2/3 correct.

9.1 VPS & Latency: Why Infrastructure Matters

Low latency reduces slippage and ensures orders execute at expected prices. A VPS close to your broker's server is essential for stable algo performance.

Latency Calculator

Enter your latency values to determine optimal setup:

PC → Broker (ms)

PC → VPS (ms)

VPS → Broker (ms)

Primary Latency (with VPS):5ms

Improvement vs direct PC:-75ms

Excellent: <10ms VPS–Broker latency is ideal for scalping and HFT strategies.

Tips:

Most brokers list their data center locations (e.g., NY4, LD4, TY3)
Choose VPS providers with servers in the same data center
Test latency with ping tests before committing
Consider redundant VPS for critical strategies

9.2 Account Types & Execution Costs

ECN accounts often have tighter spreads but higher commissions. Standard accounts have wider spreads but no commission. Calculate total costs to compare.

ECN vs Standard Account Comparison

Feature	ECN	Standard
Spread (typical)	0.0–0.3 pips	1.0–2.0 pips
Commission	$5–10 per lot RT	None
Total cost (1 lot EURUSD)	~$5–13	~$10–20
Execution	Market / STP	Instant / Market Maker
Min stop distance	Often none	May have limits
Requotes	Rare	Possible
Slippage	Both positive/negative	Usually negative only
Best for	Scalpers, HFT, high-volume	Swing, low-frequency

Execution Cost Estimator

Calculate your true trading costs per lot:

Pair Type

Spread (pips): 1

Commission ($/lot RT): 7

Slippage (pips): 0.2

Swap ($/lot/day): -1.5

Holding time (hours): 4

Entry/Exit Cost:1.90 pips ($19.00)Swap Cost:$0.25Total Cost:$19.25

9.3 Pilot Rollout: Phased Deployment

Pilot Rollout Planner

Never jump from demo to full live. Use a 3-phase approach: micro-live validation, partial capital, then full deployment with proven results.

Phase 1: Micro-Live

Trade with minimum lot (0.01) on live account to validate execution

Capital: 5–10% of target

Duration: 20–50 trades or 2–4 weeks

Gate: Execution matches demo within ±1 pip slippage average

Phase 2: Partial Capital

Scale to 25–50% of target capital if Phase 1 passes

Capital: 25–50% of target

Duration: 50–100 trades or 4–8 weeks

Gate: PF ≥ 1.2, Max DD ≤ limit, no unexpected behavior

Phase 3: Full Capital

Deploy full capital if Phase 2 metrics meet targets

Capital: 100% of target

Duration: Ongoing with periodic review

Gate: Continuous monitoring; scale back if metrics degrade

Target Balance ($)

Risk per Trade (%): 1

Average Stop (pips): 30

Max Daily Loss (%): 3

Max Weekly Loss (%): 6

Summary:

Risk Amount:$100.00Est. Lot Size:0.33Max Daily Loss:$300.00Max Trades/Day:3

9.4 Volatility & Liquidity Guards

Volatility & Liquidity Guard Builder

Live markets have variable conditions. Build protection rules to pause trading during unfavorable conditions.

ATR Percentile Min: 20%

ATR Percentile Max: 80%

Spread Cap Mode

Spread Cap (pips): 2.5

Slippage Cap (pips): 1

News Blackout Before (min): 15

News Blackout After (min): 15

Block trading during rollover hour (00:00 GMT)

Active Trading Sessions:

Sydney (22:00–07:00 GMT)

Tokyo (00:00–09:00 GMT)

London (07:00–16:00 GMT)

New York (12:00–21:00 GMT)

9.5 Broker Selection Checklist

Broker Selection Checklist

Choose a broker that supports algorithmic trading with good execution, regulation, and MT5 support.

9.6 Launch Plan Builder

Launch Plan Builder

Consolidate your infrastructure, costs, rollout phases, and guards into a single actionable launch plan.

Strategy/Bot name

Selected broker

Account type

VPS provider

Target live balance ($)

Risk per trade (%)

Phase 1 → 2 gate

Phase 2 → 3 gate

Protection policy summary

Planned launch date

Review schedule

Lesson 9 Quiz

Test your understanding with 3 questions. Pass with 2/3 correct.

Demo → Live: Infrastructure & Execution

9.1 VPS & Latency: Why Infrastructure Matters

Tips:

9.2 Account Types & Execution Costs

9.3 Pilot Rollout: Phased Deployment

Phase 1: Micro-Live

Phase 2: Partial Capital

Phase 3: Full Capital

Summary:

9.4 Volatility & Liquidity Guards

9.5 Broker Selection Checklist

9.6 Launch Plan Builder

Lesson 9 Quiz

Demo → Live: Infrastructure & Execution

9.1 VPS & Latency: Why Infrastructure Matters

Tips:

9.2 Account Types & Execution Costs

9.3 Pilot Rollout: Phased Deployment

Phase 1: Micro-Live

Phase 2: Partial Capital

Phase 3: Full Capital

Summary:

9.4 Volatility & Liquidity Guards

9.5 Broker Selection Checklist

9.6 Launch Plan Builder

Lesson 9 Quiz