Trade Like the Professionals
Data providers supply market price information, for a fee.
Data Providers - what are they?
The successful systems traders trade on a daily cycle and a day is their information time interval. All their prices cover a market day and of course, all their charts show daily prices.
Prices used are known as OHLC (Open, High, Low, Close) prices and these are available from your data provider as soon as the markets close.
You will also need to keep a file of historical prices for all of the commodities you trade. The price history will extend over the past 5 to 10 years and is made available in continuous form, although in fact commodity futures prices are all based on short term contracts.
Data providers have ways of linking prices so that a continuous prices can be produced which is representative of the differential movements in the daily price.
This is necessary so that realistic testing can be done over extended time periods.
Maintaining accurate and representative information is an expert business and it is essential that you select a reliable data provider. Fees charged for supplying information current daily and historical prices are very small.
Copyright David Bromley 2006
All Rights Reserved.
David Bromley helps
new and aspiring systems
traders establish a complete
trading method to compete
with the professionals