Reuters to CMC...lost pips.

[YachtFund]

Afternoon All

I bought MetaStock, signed up for Reuters data and worked on my trading plan then began to test it with CMC (good spread), but noticed that the price that Reuters shows is vastly different than that by CMC. Its a lot less volatile. I presume this is because Reuters uses a number of brokers to get its price and CMC is just a single market maker.

I cant get the data from CMC into MetaStock to back test so not sure if it will work.

Im curious how other people cope with this difference in price activity when trading.

This is a 'proper' newbie question, apologies.

Cheers

YachtFund

 

[Anonymous]

vastly different

difference in price activity

The more differences there are, and the more often they appear, the more opportunities there are.

 

[YachtFund]

I do see that if Reuters starts heading somewhere you can get in quick and as long as its a permanent somewhere its ok as you tend to beat them.

If its a temporary move you can get caught out.

This difference between testing data and the live prices you get must distort the back testing results...

 

[Anonymous]

There is the bid and there is the ask.

If one person calculates using the bid it's one result. If another person calculates using the ask it's another result.

Reuters picks up one thing from say a set of banks. Telerate may pick up another thing from a different set of banks.

The data collected by different vendors will thus be different somewhat.

 

[philhackett]

Not for nothing is Deal for Free known within our community as Steal for Free. Better to use Selfinvest as your broker. They have superb free charts too.

Phil

Afternoon All

I bought MetaStock, signed up for Reuters data and worked on my trading plan then began to test it with CMC (good spread), but noticed that the price that Reuters shows is vastly different than that by CMC. Its a lot less volatile. I presume this is because Reuters uses a number of brokers to get its price and CMC is just a single market maker.

I cant get the data from CMC into MetaStock to back test so not sure if it will work.

Im curious how other people cope with this difference in price activity when trading.

This is a 'proper' newbie question, apologies.

Cheers

YachtFund