Suspected rogue trader Navinder Sarao lived in his parents' modest home because it gave him a split-second advantage worth millions of pounds - and a potential £40million offshore nest egg. His family's semi-detached house in suburban West London is closer to an internet server used by one of the major financial exchanges, giving him a nanosecond advantage over rivals in the City. His thousands of high-frequency trades could be processed faster than those from dealers in Central London, giving him a massive commercial advantage. Sarao, 36, was dubbed the 'Hound of Hounslow' after it emerged he lived at home with his parents, despite allegedly making £26.7million in just four years of dealing from their home. Suspected rogue trader Navinder Sarao (circled) lived in his parents' modest home because it gave him a split-second advantage worth millions of pounds . Sarao's family's semi-detached house in suburban West London (pictured) is closer to an internet server used by one of the major financial exchanges . He was arrested on Tuesday at the request of US authorities, who have accused him of helping to trigger the Wall Street 'Flash Crash' of 2010, in which almost a trillion dollars was wiped from global share prices. The former Brunel University student allegedly made £550,000 in five minutes on the day of the 'Flash Crash', the biggest one-day collapse in Wall Street history. He is accused of using computer programs to create 'spoof' transactions on the Chicago Mercantile Exchange, and faces charges which could carry a 380-year prison sentence. Arrest: Navinder Singh Sarao is accused of making £26million by 'spoofing' the stock market from his parents' semi in Hounslow, west London . He spent a third night in custody last night after failing to pay the £5million surety demanded by the courts to grant him bail. Neil Crammond, who in 2002 helped train Sarao in his first trading job at Futex in Woking, Surrey, said he had quickly become one of its most successful traders, and that the family's home in Hounslow was perfectly located for Sarao's operation. He told the Daily Mail: 'One of the exchange servers is based at Slough. The nearer you are the faster your order travels. 'He could overtake orders from the City, meaning he was better placed to profit on tiny fluctuations in the market. It's only nanoseconds but these minuscule amounts of time are literally worth a fortune to traders. Every nanosecond counts.' There is no suggestion of any wrongdoing by Sarao during his time at Futex, which he left in 2008. According to The Times his company accounts show that he paid £23million to an employee trust plus another £15million 'guarantee fee' - a type of security - was also paid in, taking it close to £40million. A former colleague  told MailOnline today: 'He was a super human trader - we were in awe of his ability to make money. When he left Futex he took £2.5million from his account with him. That was unheard of. 'We were all encouraged to set up offshore accounts. If he has as much money as people think then that's where it'll be'. Sarao (pictured in court) spent a third night in custody last night after failing to pay the £5million surety demanded by the courts to grant him bail . Sarao allegedly masterminded – from his home computer – the Wall Street ‘Flash Crash’ of 2010 in which almost a trillion dollars was wiped from global share prices. But the whereabouts of his alleged £26million profit is a mystery. Sarao once wrote to a trade magazine claiming he made between £30,000 and £88,000 each day, but former colleagues said the trader had scant regard for the trappings of his success, living a frugal life. He is said to have 'loved making money, not spending it', and friend told MailOnline he would make £250,000 a day trading. Despite his alleged wealth he would travel to work late so he could buy off-peak tickets, only have lunch if he could find cut price sandwiches and shunned drinking in pubs for pints of milk at his desk. Sarao, who was scruffy and dishevelled in the dock during his extradition hearing on Wednesday, was able to offer a £5million surety to secure conditional bail - but it is yet to be paid. The Brunel University graduate is said to be 'scruffy', 'not flashy' and does not own a car so uses a fold-up bike - but is sometimes seen in his parents' Vauxhall Corsa. Adam Whiting, a fellow trader who sat next Sarao for eight months, said: 'One thing I will say is Nav used to wear a tracksuit every day even when an early millionaire!' He added: 'Everyone banging on about his s***** Hounslow house. From what i remember Nav only loved making money, not spending it'. First job: Sarao started his trading career at this office in Woking where former colleagues described him has a 'legendary' trader who made huge sums of money . Panic: Traders at the New York Stock Exchange watch in disbelief as the markets tumbled during the 'Flash Crash' five years ago . Mr Whiting revealed that Sarao had spent £100 on clothing Sports Direct but he later made £15,000 on a single deal . He said: 'When the trade came back he took all his clothes back.' Another former colleague told MailOnline: 'Nav is a bit like Rain Man. He would never come out drinking, never socialise, I'm not sure he had friends, but he was quite brilliant at his job. 'In six months in his last job before going it alone I know he made up to £4million in six months and at Futex he made £250,000 a day at times. People were in awe of him and his brain. 'But he was also known for being tight, he would wear the same shell suit, had a fold up bike because he had no car and would drink milk from a bottle at his desk. However, school friends said Sarao had briefly lived a flashier lifestyle when he began making money in his mid 20s. Aman Singh, 36, a former classmate, said: 'He used to go to strip clubs where he would flash his cash and pay for dances. 'I don't think he's ever had a girlfriend. He didn't seem interested in meeting girls unless it was strippers in these bars.' In a 2014 email to the UK Financial Conduct Authority, Sarao said: 'I am a trader who changes his mind very, very quickly, one second I'm prepared to buy the limit of 2,000, the next second I may change my mind and get out. 'This is what is unique about my trading, I trade very large but change my mind in a second.' Sarao described himself as 'an old school point and click trader', saying he used his computer mouse to place each trade – which appears to contradict US allegations he used computer programs to manipulate markets.
Navinder Sarao lived in parents' modest  home in suburban West London .
Thousands of his 'high-frequency trades' could be faster than City dealers .
36-year-old amassed over £26million in just four years living at their house .
He is accused of using computer programs to create 'spoof' transactions .