Using futures data to trade CFD's with mechanical systems

[awoodj]

Looking for advice if anyone has looked into this. I am already trading some EOD systems (using Wealth-Lab and Deal4free as broker) based on US stocks and indices. I am now looking to expand the instruments i use and as Deal4free now offer Commodities as well as FX in the CFD account i am interested in trading these. However the problem i have is getting EOD data to test and trade against their platform. I believe the commodities and possibly Indices too (not sure on FX) are based on the prices in the futures markets. The question is does anyone know how to relate these correctly to the prices D4Free quote. ie If oil futures are at $55 per barrel in the futures market then how are D4Free calculating their prices. I assume it depends on which contact month they use (which might be different for different instruments) and the interest payments on the futures etc.

Same question i guess for FX futures data too, can i use it after adjusting to trade/test from.

PS I understand there are differences in spot FX and Futures FX prices due to the nature of the markets but i would initially be willing to ignore these and demo trade to see how much of a problem that was.

Anyone know or have a rough idea?

 

[JonnyT]

The daily FX quote on Deal4Free is based on Spot and not futures.

Deal4Free's commodities are based on the futures with the expiry dates given by Deal4Free.

However be aware Deal4Free roll over commodity bets way before expiry...

I use SeirraChart www.seirrachart.com and MyTrack bronze dial database for EOD on commodities.

JonnyT

 

[awoodj]

Hi Jonny

Thanks for the info, so from what you say it seems possible to trade the D4F commodities from futures data but i would also need spot FX. Reason i ask is i was considering Esignal's EOD database which is around $300 for Stocks/Commodities/Indices (and integrates with most software) but they charge $50PM on top for Spot FX (which i think is ridiculous.) It seems that most good historical Futures data providers don't do FX spot. If anyone knows of other suitable providers then let me know.

So far as charting etc i am not that bothered as for recent stuff the D4F new charting is pretty good now and as the systems are mechanical i don't need fantastic charting.

Thanks

 

[JonnyT]

Whoa...

Don't go down that very very expensive road!!!

Spot FX realtime data and charts are free from places like www.dailyfx.com never mind EOD.

You can do EOD on commodities for around £20 pcm using www.sierrachart.com with MyTrack bronze service as the data fee. This includes EOD FX aswell.

I can thoroughly recommend it. ESignal for this kind of trading is like having a Rolls Royce to pick up the groceries from the shop next door.

JonnyT

 

[sidinuk]

ESignal for this kind of trading is like having a Rolls Royce to pick up the groceries from the shop next door.

I prefer to use the Porsche.