Introduction
For crypto traders, server location significantly impacts trading speed and efficiency. This article presents a detailed latency analysis of Binance across AWS regions, offering actionable insights to optimize trading bot performance.
Methodology
Tools and Setup
- Hummingbot: An open-source solution with multiple exchange connectors, ideal for creating crypto trading bots via Python scripts.
- Script: A custom hummingbot script measured round-trip times for order creation, cancellation, and execution.
Key Steps:
Timestamps:
- Pre-transmission: Recorded before sending API requests.
- Post-transmission: Captured upon receiving exchange confirmations.
Order Types:
- Limit Orders: Created/canceled every 30 seconds.
- Market Orders: Executed every 5 minutes.
- Consistency: Identical
t3.smallAWS instances across regions, each linked to unique Binance subaccounts.
Phase 1: Global Latency Comparison
Tested Regions (4-hour window):
- Asia-Pacific: Tokyo, Singapore
- Europe: London, Frankfurt
- North America: Canada
- South America: São Paulo
- Middle East: UAE
- Africa: Cape Town
Results:
- Order Creation: Asia outperformed other regions (lowest median latency).
- Box Plots: Visualized latency distributions, highlighting central tendencies and outliers.
Phase 2: Asia-Specific Deep Dive
Tested Regions (24-hour window):
Tokyo, Osaka, Seoul, Hong Kong, Singapore, Mumbai, Sydney
Key Findings:
- Order Creation: Osaka achieved the lowest median latency, surpassing Tokyo and Seoul.
- Order Cancellation/Execution: Consistent superiority of Osaka.
- Statistical Tables: Detailed quartile analysis for each activity.
| Metric | Osaka (ms) | Tokyo (ms) | Seoul (ms) |
|---|---|---|---|
| Order Creation | 120 | 135 | 130 |
| Order Cancellation | 115 | 140 | 125 |
| Order Execution | 110 | 125 | 120 |
Conclusion
- Optimal Region: Asia, particularly Osaka, demonstrated the lowest latencies for all order activities.
- Implication: Traders leveraging AWS-hosted bots should prioritize Osaka for high-frequency operations.
- Future Work: Similar analyses planned for other exchanges—suggestions welcome!
👉 Explore Hummingbot for Your Trading Strategy
FAQs
Q1: Why focus on AWS regions?
AWS offers global infrastructure, making it a standard benchmark for server performance comparisons.
Q2: How does latency impact trading?
Lower latency reduces slippage, improving order execution speed and profitability.
Q3: Can I replicate this test for other exchanges?
Yes! The provided script is adaptable—simply modify the exchange connector.
Q4: What’s next in this research?
Expanding to exchanges like OKX and Coinbase. Stay tuned!