Differences in data from Broker x and Broker Y

• 06/02/2020 at 11:05 PM #134307
  GraHal

  The posts below started on another Topic, but I felt it may benefit from it’s own Topic.

  GraHal wrote:

  Do we not expect broker x CFD to be the same as the underlying except for spread differences and slippage due to speed of execution etc. There should not be wide differences else what is to stop broker x manipulating prices etc??

  Nicolas wrote:

  Yes of course, so I don’t understand what you mean GraHal? By accepting to trade derivatives assets like CFD, you already agreed to use not real market instruments and trading “against” the broker. Just compare 2 CFDs brokers on any instrument and you’ll not get the exact same OHLC values, therefore the subject to over optimization to a specific data serie (broker X) is a concern, what would be the result on broker Y?

  I’m thinking aloud here, so don’t shoot me down … 🙂

  The differences between the data from / used by broker x and broker y should not be so great  (on the same underlying) that, for example … MA[10] Crosses over MA[50]  … would occur with broker x but not occur with broker y using a 1 hour TF (for example)?

  If MA[10] crosses over MA[50]  occurs with broker x at 085959 then it could occur at 085958 or maybe even 090000 with broker Y??

  Could difference in spreads account for above as surely the mid price should be the same?

  But I guess spread can be ‘Buy side loaded’ or ‘sell side loaded’  so then mid price could be quite different??

  At the extreme … the above cross may occur with broker x and then pullback and so maybe not occur at all with broker Y ??  But this would be the exception not the norm?

  So an Auto System which gives good performance with broker x but poor performance with broker y (on the same underlying) must be highly optimised?

  Or broker x spreads are much lower than broker  y ?

  Any other thoughts anyone on what could account for difference in performance between broker x and broker Y??

  Lot of questions above!? 🙂

  

  GraHal

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  06/20/2020 at 5:35 PM #136643
  keewee

  good questions GraHal!

  So for example CFD indicies never follow the underlying instrument? Not even during market hours? If not, Are we “gambling” against other IG customers or against an IG robot?
  (this is surely written in IG’s agreement somewhere but I might have missed it)

  

  keewee

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  06/20/2020 at 8:00 PM #136650
  GraHal

  keewee wrote:

  So for example CFD indicies never follow the underlying instrument?

  Ha … I emptied my thoughts before I went to bed so I could sleep!! 🙂
  I think / hope CFD and spreadbet do follow the underlying apart from the reasons I mentioned?

  If we see differences then I think it is due to logical reasons … Nicolas did a good summary recently, I’ll try and find it.

  Out of Market Hours then IG should follow Futures Prices?

  Weekend prices do not have an underlying (?) … what sort of folk trade weekend DJI ??

  Looks like we are set for further falls at 23:00 (UK time) tomorrow Sunday.

  https://www.ig.com/uk/indices/markets-indices/weekend-wall-street

   

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  GraHal

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  06/20/2020 at 8:10 PM #136652
  JohnScher

  The averages can differ in the indices, especially in the middle time units. This is due to trading hours. ig.com sets prices on Friday evenings longer than other brokers. ig.com also sets prices OutOfOur, e.g. on stock exchange holidays, others do not. This distorts, falsifies. See and compare for e.g. ig.com with jfd.com or even akfx.com

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