My nameís Jason, I'm new to this forum (or any stock forum for that matter) and this is my first post. I have traded on and off for last few years in index CFD via IG Markets casually and would like to quit my dead 9-5 office job to trade full-time.
I only deal with index focusing on the ASX200 data, namely XJO. Unlike most people, maybe Iím strange I donít know, but I have never fancied charts although I have read extensively about them and Iím sure they are very useful. Instead I use ďnumber formatĒ, for example, I combine 14 Day Stochastics with EMA, but I calculate & modify these numbers myself in Excel and then manually analyse the daily prices on paper stretching back the last 12 years since XJO first came into existence in 2000. I would be more than happy to share my insights until I have fully tested the system.
All 4 numbers (Open, High, Low and Close) are critical to my calculation. Last week I took a few days off to have more focus. I opened with FP Markets to gain access to live XJO data (the data set which I been working on) and I noticed a problem. The opening price of XJO is calculated at 10am, however IG Market ASX200 have a price difference compared to XJO at 10am, this does concern me, however the RELATIVE price difference changes from 10am to 10:10am and then the differential will maintain somewhat constant until closing at 4:10pm.
To give you an example, on the last trading day Friday (24/8/12) I waited for the XJO opening at 10:00:36am via FP Market, it opened at 4375, a drop of 8.7 points compared to previous day Close. Accordingly, I anticipate it will most likely to drop further until Closing at 4:10pm. At XJOís opening at 10am, IG Market is 4346, 29 points difference compared to XJO. This does not concern me however, as long as the RELATIVE price movement are similar to XJO. At 10:10am, the XJO is 4353, while IG Market is 4350, or about 3 points difference compared to XJO. This 3 points differential widens againt to around 7 points is somewhat maintained throughout the trading day and thus became in ďsyncĒ with XJO.
The day ended with XJO at 4349 at 4:10pm, with IG at 4341. My anticipation was correct, and XJO indeed did drop (by 26 points). Since I cannot trade XJO however, I would have to use SPI or IG Market. If I short both at 10am, I would in fact lose 1 point using SPI or gain only 5 points via IG, due to the price differential from 10am to 10:10am of both SPI and IG Market.
I am a little bit stumped by this dilemma. If I revise the system to change Opening price to 10:10am, I would need the XJO data stretching back for 12 years starting from 10:10am as opposed to the standard 10am (this begs anther question, why is XJO Opening calculated from 10am anyway, when not all the stocks have been released until 10:10am???), however to segment XJO in time slots going back to 2000 Iíve been told by FP Market is not possible (I use WebIRESS Excel Add-in)
Alternatively, I can revise the numbers based on SPI futures data, however when I try to get past data for SPI futures using the code APSPOT it only provides data for the last year or so and not going back any further.
If anyone been in a similar situation or have any thoughts, it would be much appreciated.