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If you use indicators or backtest trading systems then your results are going to be thrown way out of line. The chart below shows FMG with a 2 moving average cross and a ATR% (Average True Range) reading.
Your backtesting would have shown either a massive profit on this trade or a massive loss which will completely skew the results. The way around this is to find all the dodgy bits of metastock data and calculate those trades yourself. An incredibly time consuming process. If you use volatility based stops like the ATR (Average True Range) you will notice that it took over a month for the figures to return to normal, once again skewing your trading results. Now you can see first hand the importance of accurate Metastock data before you run any type of system testing. What other errors should I look out for?
If you download your Metastock data prior to the fully adjusted data you may have inaccurate volume or an inaccurate open, high, low or close. The most common is volume and if you use indicators like OBV (On Balance Volume) then your results could be significantly different to what they should be. Hopefully now you are beginning to get a clear picture of the important of clean and accurate metastock data. It is for these reasons that LearnCFDs.com recommends and uses Premium Data from Norgate investment services. CFD Tutorial Disclaimer: Trading Contracts for Difference carry risk where you can lose more than what you start with. View our full disclaimer here.
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