data for cfd trading strategies

Is dukascopy cfd data quality good enough for creating US30 H1 strategies?

Thank you for your help.

Hello,

yes, it is of decent quality and can be used to trade the Dow index using CFD contract but the spread is bit too wide.

I personally prefer trading US indexes using micro-futures contracts where spread is about 1 – 2 ticks while 1 tick equals 50 US cents https://www.cmegroup.com/trading/equity-index/us-index/micro-e-mini-futures.html

We have data for these in SQX too https://strategyquant.com/data-subscription

ill not reccomend to use dukascopy data to trade CFD indices – every broker using different specs and most probably your backtest will be a lie

Hi,

I am new to SQX, and want to create robust strategies for indices too, which I plan to trade on cfd in the beginning due to capital restraints. Does it make sense to develop strategies with future and equity data even if I plan to trade them on cfd?

Kind Regards,
André.

I would say that depends on the strategy since data is never the same only highly correlated. Some strategy will be very similar while others will fail when switched to CFD. The strategy needs to be able to survive higher costs linked to CFD trading due to wider spreads. A general rule I would think of here would be go higher timeframes and longer trades

I developed some good backtest results from another software like SQX on ES, SPY etc.

However, when I deployed that same code on IG (one of the largest/oldest CFD providers), the strategy fell apart.

My advice would be to develop tests on the data you are going to trade; it may be different how they define open, close etc. and you won’t be able to find out whether your strategy failed because the strategy was not robust or due to different data and if you can’t find that out, you won’t have confidence in the system and if you don’t have confidence, you will abandon even a good system.

The problem in that case was IG only had a few years of data from the backtesting application (Prorealtime).

futures and CFDs cant be combined…specification is different. For futures 1 pips is move by 0.25, for CFDs mostly 1 pip is move by 1