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Is end of day Stock Market data reliable?
Reliable stock market data is critical for you to develop a good stock trading system. "Is end of day stock market data reliable?" was a question I received from one of my clients who I am helping to learn stock trading ...
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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 EOD stock 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.
- Subscribe to Metastock stock market data through this link and get 1 month free
OR - Subscribe to stock market data and the Metastock trading software through this link and get 3 months for the price of 1 (Both are affiliate links, so I get a small commission at no cost to you)
PLUS...Get a Personal Trading Assessment ($69 value) or a copy of my Trading Plan Workbook ($27 value) absolutely FREE as an extra bonus - Just send me a copy of your invoice with my promo code on it to 'admin at tradingsystemlife dot com' and let me know which bonus you want!
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 and I 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.
- Subscribe to Metastock stock market data through this link and get 1 month free
OR - Subscribe to stock market data and the Metastock trading software through this link and get 3 months for the price of 1 (Both are affiliate links, so I get a small commission at no cost to you)
PLUS...Get a Personal Trading Assessment ($69 value) or a copy of my Trading Plan Workbook ($27 value) absolutely FREE as an extra bonus - Just send me a copy of your invoice with my promo code on it to 'admin at tradingsystemlife dot com' and let me know which bonus you want!
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.
I would 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.
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