How many symbols can I trade with my multi-instrument strategy? Can I scan the whole market and select the qualified stocks to trade? We hear such question from our clients all the time.
In this article we will tell how many symbols can be used in a trading strategy and what factors may limit this number. While the article mostly targets NinjaTrader platform the considerations and conclusions are applicable to other trading platforms as well.
Read moreHistorical market data traditionally is used in back-testing. Technically, it has no difference from real-time market data. However, there are nuances that may change everything.
Many data providers claim that they offer years of historical data. What they don't mention is that the data comes in a form of OHLC (Open, High, Low, Close), which is also known as a bar. Therefore, we do not know how price moved inside bars, that data is effectively lost. For example, if we have 5 minutes bars then for the whole 5 minute period we only get 4 price values
Essentially, it means that 99% of price action will be lost.
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