What is a VPS, and when does a trader actually need one?

A VPS is a rented computer that runs your trading platform 24/7, close to your broker's servers. It's for people who run automated systems or need orders to fire while their own machine is off.

What is a VPS, and when does a trader actually need one? — risk-reward diagram
A risk-reward ratio of 1 to 2

Do you use one?

  • what made you get it
  • the difference in execution you measured
  • whether a beginner needs one at all
What is a VPS, and when does a trader actually need one? — moving average crossover diagram
A fast moving average crossing a slower one

For most beginners the honest answer is no — the money is better spent on a journal and smaller position sizes.

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