Thanks for the reply.
Can you link me for HDMS only being for historical data?
For how it effects trading, let's say you are trading USDEUR late night at 12:05am and HDMS disconnects then you won't be able to move your position to higher or lower until you close/reopen TWS or wait I guess till HDMS connects again. There is a momentarily pause in everything probably and that can be a missed opportunity for a modification to a buy/sell order that is already placed but not executed yet.
Also, last night I noticed my balance in portfolio was not updating in TWS - probably also because of HDMS. This can be a serious issue when looking at available margin for example.
But then again maybe TWS is slow to connect to HDMS server and API won't have that issue and disconnect would be temporarily?
I also wonder if IB Gateway does better in this respect and other server connection errors than TWS since it's lighter and maybe more agile?