Stock Trading Systems: Is End Of Day Stock Market Data Reliable? - Table of Contents
Reliable stock market data is critical for you to develop a good stock trading system.“Is end of day stock market data reliable?”wasa question I received from one of my clients who I am helping to learn stock trading …
It is important to inspect your data to ensure it is reliable – no matter what timeframe you use!
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A Quick Definition Of EOD Stock Market Data
End of day stock price data (EOD for short) is data that you download after the markets have closed for the day, or after some pre specified time if you are looking at 24 hour markets like forex.
Typically when we talk about EOD stock data we are referring to daily price data where you get the open, high, low, close, volume for the day. When you view daily EODstock prices on a bar chart one bar represents a single day’s trading activity.
So Is It Reliable?
The question of reliability is more related to the data vendor than to whether it is end of day data or not.
There are very reliable data vendors for all timeframes, and there are also very unreliable vendors who have data full of bad tics and incorrect / missing adjustments.
No matter which data vendor you choose, I suggest you get a trial subscription and spend a bunch of time looking at various charts and running scans to check the data for yourself before you commit to a long term contract.
One good strategy is to compare the data from one provider to another. If you only trade a few markets this is pretty easy to do in a spreadsheet or database. If you trade many markets then spot checking several of those markets to ensure everything looks reasonable may be easiest.
There are many data providers out there, but if you do a little bit of research it will quickly come down to a much smaller number of reputable providers with good reputations on the trading forums. Most trading forums have discussions about data providers so I suggest you confirm your vendor choice has a good reputation before proceeding.
I use and recommend stock market data from Metastock. Because I have an arrangement with Metastock, I would like to make you a special offer if you subscribe to their stock market data for your trading system backtesting or charting.
What Should I Check For?
Things to check for are:
- Data cleaned and checked daily
- Automatic downloading and distribution of data
- Automatic adjustments for stock splits and corporate actions
- Futures contracts with both underlying contracts and continuous contracts
- Ability to adjust the roll settings for continuous contracts
- Large database of historical data
- Data checked by vendor for bad tics and errors
Which END Of Day Data Supplier Is Best?
I use Metastock stock market data andI have found them to be highly responsive in their customer service, good quality data and very good value for money for stock trading system development.
Of course they also meet my other requirements above. There are many other data vendors out there and I suggest you do the due diligence yourself to ensure you get the best vendor for your needs.
I use and recommend stock market data from Metastock. Because I have an arrangement with Metastock, I would like to make you a special offer if you subscribe to their stock market data for your trading system backtesting or charting.
One final thought – there is plenty of free data out there, but you generally get what you pay for, so I would avoid being stingy and just buy good data because the mistakes bad data cause will cost you far more than the cost of good data!
Want To Learn Stock Trading Quickly…
If you want to learn stock trading and have someone guide you every step of the way so that you can stay in control and learn how to profit quickly then check out my unique new program by clicking the image on the right.
Iwould love to help you learn stock trading quickly and address your trading questions for you!
Click the image and enter your email to find out more about this unique new program which allows you to learn stock trading quickly with the support you need.
Learn The 10 Commandments For Profitable Trading
Discover the 10 most important lessons from 18 years of profitable trading & reading over 150 trading books.
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Adrian ReidFounder and CEO
Adrian is a full-time private trader based in Australia and also the Founder and Trading Coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable systems trading. Following his successful adoption of systematic trading which generated him hundreds of thousands of dollars a year using just 30 minutes a day to manage his system trading workflow, Adrian made the easy decision to leave his professional work in the corporate world in 2012. Adrian trades long/short across US, Australian and international stock markets and the cryptocurrency markets.His trading systems are now fully automated and have consistently outperformed international share markets with dramatically reduced risk over the past 20+ years.Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.
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