You can't do ultra low latency trading on IB or any of the discount brokerage houses. Essentially, your order goes through their system before it goes out on the broad market, and that (time) cost is orders of magnitude larger than the internal system cost. Also, the (economic) costs of doing business with that type of broker are comparable to to the profits.
There are difficulties with simulating at this level, and I will go into this later, because the quality breaks down. Many ultra low latency trades involve some sort of rebate capture (profiting off of the fact that the exchange gives you money if you provide liquidity to the markets), and that requires some sort of model for how the rest of the market would react to the presence of your extra liquidity.
There are difficulties with simulating at this level, and I will go into this later, because the quality breaks down. Many ultra low latency trades involve some sort of rebate capture (profiting off of the fact that the exchange gives you money if you provide liquidity to the markets), and that requires some sort of model for how the rest of the market would react to the presence of your extra liquidity.