The BIG advantages of Deltix over rolling your own HFT trading platform open source vs commercial components

(Last Updated On: May 1, 2013)

The BIG advantages of Deltix over rolling your own HFT trading platform open source vs commercial components

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I got email from a Member questioning:

Deltix capabilities,

Is it good for long term use?

Is this the best platform?

etc

 

First off, I was offered a cut any customer I forward to Deltix but I quickly refused it to stay independent. In a nutshell, I am neutral from all that but I am pumped on this platform! As for pricing, yes it is expensive but if you watch this:

 

 

You will quickly realize the pricing of Deltix will shield from:

1. No need to have in house developers to maintain your connectivity to brokers and feeds. If there are any changes to any of these adapters or FIX engines, the Deltix platform will you shield from these costs. This also greatly reduces your risk of any coding errors when you implement your live trading strategies for those firms that are handling millions in capital each day. So how much does each qualified developer going to cost your per month? I have ranges anywhere from $6-$12k per month!

2. Also, you no longer need to pay expensive monthly FIX engine services to manage your connectivity to your brokers. These services range from %3K (for questionable) all the way to up to $10K with full blown high quality FIX adapter management. Again, Deltix is shielding you from those expenses and risks.

3. If someone chooses to ‘roll’ their own trading solution, they run the risk of not getting proper support or training on their live trading environments. Any modifications to their platform becomes high risk if something goes off the rails. Think Knight Capital where one fat finger cost them over $450M in a few hours. Also, they almost went under. Are you that kind of risk taker?

4. As hinted in ths above video, you will find the management of ticks and historical bars are handled quite nicely in the software high speed database called Tickbase. To get the same kind of performance, you would need to something like kdb+ which is very expensive. If you want a full on universal license, that will run you $1 million. It is much more expensive than Deltix fees. As for any high speed open source NOSQL (i.e. MongoDB) in memory databases, I am not sure if my 6-8 digit customers external investors would be comfortable with that if something goes off the rails. Again, who do you call for support? The management of all this is something for a small shop like mine would never want to take on.

5. Also in the video, you will find the ease of point and click to manage all your data feeds. The cost of this productivity is something that needs to be considered as well.

6. Lastly, if anyone question these kind of costs for the above benefits clearly needs to examine the internal operations on the risk that comes with the savings if anyone choose to roll their own and integrate various commercial solutions.

 

In terms of customers abandoning this, it sounds like they are a growing with those that carefully handpick the vision of what Deltix brings. I cannot speak on how Deltix will take on any clients who would question the platforms capabilities.

From my perspective, I have spent quite a few years looking for anything that can do a decent job. Deltix is definitely it from my point of view. In terms of credibility, the have won various awards at the Technical Analyst Awards for two years in a row. It says something on what the industry. My various members are very excited on the potential of this platform as well as they see the many benefits.

 

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Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs