Help Me Out

[iaincmm]

Hi all,

I'm just starting out so would appreciate some advice or pointers to relevent information. I would like a software tool (and access to data) to help back test the strategy I am developing and hopefully take it forward into a real account. As I am still learning I am going to limit the markets I look at to ftse100 stocks, a selection of indices and maybe a couple of commodities. I am looking to use various technical analysis indicators to do this. I plan to trade of the 1-30 day timeframe.

Thus:

1. Is Metastock a suitable tool?
2. Any opinions on the MetaStock End of Day offering?
3. Do Metastock provide the data I need as part of the deal or do I need get that from somewhere else?
4. If I need external data who provides such a service?
5. Any other more suitable tools out there?

Thanks,
Iain

 

[Chorlton]

Hi all,

I'm just starting out so would appreciate some advice or pointers to relevent information. I would like a software tool (and access to data) to help back test the strategy I am developing and hopefully take it forward into a real account. As I am still learning I am going to limit the markets I look at to ftse100 stocks, a selection of indices and maybe a couple of commodities. I am looking to use various technical analysis indicators to do this. I plan to trade of the 1-30 day timeframe.

Thus:

1. Is Metastock a suitable tool?
2. Any opinions on the MetaStock End of Day offering?
3. Do Metastock provide the data I need as part of the deal or do I need get that from somewhere else?
4. If I need external data who provides such a service?
5. Any other more suitable tools out there?

Thanks,
Iain

Hi Iain,

There are LOADS of useful information on this site that will help to answer your questions one by one.

However, as an initial starter:

1. Is Metastock a suitable tool?

Why have you chosen MS? There are many software packages out there ranging from expensive ones to "Free" ones. These include (in order of cost):

TradeStation
Metastock
BullCharts
Amibroker
ProRealtime (Free!!!)
Plus others... but the list above is a good starter IMO

2. Any opinions on the MetaStock End of Day offering?

I'll probably get shot down in flames but IMO MS is not as good as other packages on offer today. MS is easy to use, especially for beginners, but it doesn't have the same flexibility as some other packages. I should make it clear that I use Amibroker, and rate this package very highly so will be a little biased ;-)

3. Do Metastock provide the data I need as part of the deal or do I need get that from somewhere else?

MS, like most other packages require external data which must be purchased separately. Costs for data vary greatley depending on various factors. Free Data is available from sources such as Yahoo but IMO try and resist the urge to use it. Free Data, although err.. free, is not as clean and reliable as purchased data. Again all IMO. If one is going to develop strategies then the data you use MUST be accurate otherwise you will be wasting your time and ultimately your capital when you begin trading!!

If you decide to use ProRealtime, they offer FREE EOD data as well. The only downside to their package is their backtester.

4. If I need external data who provides such a service?

There are many data vendors out there. I use JustData as they supply both LSE and ASX data.

5. Any other more suitable tools out there?

If you are SERIOUS about System backtesting you will need to have the ability to carry out Monte Carlo Analysis. Any Backtester which only allows one security to be backtested at one time (such as the backtester in MS) is next to useless!!! The backtester MUST have the ability to backtest a PORTFOLIO of securities if you intend to trade Equities.

Hope this helps,

Chorlton