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?

Another example of a metastock data error that is often overlooked is the time you get your data. The Australian Stock Exchange has several closes in their data, like the after market close, then around 5pm all the brokers orders are adjusted, then around 7pm you get the preliminary final data and then after 8-9pm you can download the fully adjusted data.

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.

3 Week FREE Trial Metastock data that is clean and adjusted. Stock, futures & Forex Data for Australia, Asia, USA, Europe and Canada Free Trial Click Here

CFD Tutorial
Why trade CFDs?
7 tips for successful CFD trading
View some CFD example trades
ASX hot stocks
The Best Trading books
Portfolio Management software

  Back to Top

Disclaimer: Trading Contracts for Difference carry risk where you can lose more than what you start with. View our full disclaimer here.