DAS Trader Pro vs IB TWS performance

[Dirk S 2]

Can we put this issue to bed with actual data? 

The general opinion is that when it comes to speed, DAS Trader Pro bests IB TWS (besides other usability issues) . Has anyone ever tested this to any level? 

What you need to know is that DAS with IB uses the same order pipeline as IB TWS, or so I am told by the DAS support. So speed gains, I speculate, would come from faster market data in DAS. In other words, you would see the price faster in DAS. But a real life test of IB TWS vs another platform (I dont have DAS) showed definitely an estimated 0.25 s lag of prices updating but I am not sure if that is enough for a competitive advantage/ make any difference in manual trading.

 

 

[Dirk S 2]

Thanks peterB.  I am not on DAS but I know this issue. It is a setting in TWS that can prevent it from happening.

Can you maybe elaborate more as to what you looked at to determine no difference?

[Dirk S 2]

The issue of delayed open in some stocks causes orders that are for the RTH (regular trading hours) not to go through. After a few calls to IB it turns out that even though it is after 930, for each stock the market maker has to officially open the stock for trading, and remarkably often that is delayed. (I always joke to myself that the market maker didn't have his coffee). 

The setting is to make the order fillable outside regular trading hours. and voila. 

Maybe a setting in DAS too?

Edited April 17, 2022 by Dirk S
forgot something

[Dirk S 2]

I had to go to my notes because I have kind of moved away from trading near the open (for other reasons). 

Indeed, there is a limitation which I had forgotten about: Stop and Market orders will not fill on IB during the 'premarket' (including delayed open which is also still 'premarket') , even if allowed per the setting, I think due to one of their conservative risk management principles. 

HOWEVER, there also should be a workaround. I know marketable limit orders work, so stop limit should work in theory. 

For stop out, you would simply choose a very conservative limit to make sure you are filled.

Again, this is my theory, would have to test  but I feel confident this would work. IF you do test it, could you please share the result here?

[Dirk S 2]

PS - so I just did a small test in IB TWS. Turns out I was correct. Pretty much confirmed 4/18/22 by stopping in and stopping out of TWTR 9:18, 9:19 AM with stop limit and setting 'fill outside RTH'. Interestingly 'Allow pre-market' didn't work.  Wide limit that would be used for stop out may cause a warning, TBD. But there are tons more settings in IB TWS that didn't even look at yet that may also help.

This should then also work with delayed open. 

Let me know if that works in DAS too or any other findings.

[Dirk S 2]

Its a personal choice, I prefer stop limit orders for entry to avoid big slippage. But my other point was set the limit on the stop limit as wide as you want, giving you a 100% chance of filling. E.g. set the limit for a $100 stop at $110 or whatever. I think the system will still take the order.  Needing a limit is an intentional restriction by IB, they say by law. ( but also by their own risk management rules).