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There are two things to separate: first a live data feed and second a historical data database (sic!) to use for backtesting.
As IB is ok for the live signal, it is NOT good for historical usage.
For the backtesting - which MUST have a very exact tickdata - IB is not my choice.
Mike is right with his statement concerning historical data on IB.
Many choices to get great historical data, I chose DTN feed for the reason to get adequate data for the different
futures in the past. This is the only go for my statistics to get best stop places for my trading rules to optimize
the longterm profitablity.
GFIs1
Can you help answer these questions from other members on NexusFi?
Understood. My point is, if I switch to using the imperfect IB data tomorrow, I guarantee you it will not turn my trading method from a winning system to a losing one, just because the data feed is slightly imperfect. If you are a directional trader, and you find that a couple of ticks difference in 1 out of 20 bars, turns your profitable method to a losing method or vice versa, you will probably not be in this business for long using that method.
Plot a chart using tick, volume, range or other non-minute based bars using CQG, Zen Fire, Rithmic, TradingTechnologies, IQFeed, Kinetick, eSignal, or other unfiltered data.
Then plot the same chart using IB. I am talking real-time data.
The IB chart will not match the others, because IB is snapshot data and filters data, drops ticks, etc. And the volume data is also not accurate.
Personally, I would rather have good data and the cost is so tiny that it is a no brainer to get a quality data feed.
I'm not saying IB data is accurate, I know it is not. I am asking the question, does it really matter for most typical traders? I trade as small as 4 range charts sometimes, putting my stops 1 tick behind minor swings, so data accuracy absolutely matters to me. @Big Mike, you trade S/R levels on 60min charts, 240m charts, and daily charts, scaling in and out. If you switched to IB data tomorrow, would the results of your trading method really change that much or at all?
No, because I don't use tick based charts. But majority of people on the forum do use tick based charts.
Bottom line for me is this: IB has inferior data. Good brokerage, bad data. No need to give them a free pass. They don't deserve a free pass or to say their data, for tick traders, is acceptable - when it isn't.
these posts have been very interesting discussion to read, appreciate everyones help on this, from what I've read and gathered it appears if I am using tick charts/volume charts, etc. to use another data provider. thanks for the input and help with this.
In fact I never used a IB chart...
thus I have no idea which data will be used/ filtered / not used in an IB chart.
Using IB as a solid brokerage is not touched by this anyway.
Admit - very RIGHT :-)
A system for longterm profitablity should let you staying in the business even if sometimes some ticks will
hit your stops / or not fill your take profit.
So a profitable system needs to be more than "slightly positive".
