Why use a non-broker data feed

[saintalan]

Apologies if this is clear to everyone else but there is one thing I don't really understand.

I have used eSignal for a while but only because I previously used a charting package that required it and thus have been able to test NT free with it not for live trading.

I am now looking to purchase NT and probably use with MBT.

What would be the point of using eSignal or Kinetic etc to trade with MBT (or any other broker) rather than the broker feed as surely even if the non broker feed is deemed to be better/faster etc surely the trade would be made on the brokers price?

I do understand reading the data available that it might be good for historic data.

Many thanks

Alan

[poeds]

Totally agree with you. All brokers should provide data foc and all exchanges should provide data foc. Its not their data its our (the traders) data every tik every bid/offer comes from us and I dont expect to pay for it or to see the prices in Walmart. Cost of entry to this business needs to be as low as possible and free feeds from brokers do the job, expensive 3rd parties not required.

[BobCards]

Look up filtered vs non filtered data. Alot of data that comes from brokers' servers are filtered or snapshots( IB for example). Snapshot data or filtered data is not suffice for many types of data analysis.

Separate the futures market from the spot forex market.
There is no "broker price" in the futures market, it is not a distributed network of ecn's in the futures market like it is in the spot forex market.

If you and I both enter an order for a futures contract, both orders will show up in the same exchange regardless of our broker.

If you and I both enter an order for eur\usd, they may not show up in the same place.
If you use MBT your order will be on MBT's ecn. If I use oanda, then I will not see your order, I will only see my "broker price".

[saintalan]

Look up filtered vs non filtered data. ...If you and I both enter an order for eur\usd, they may not show up in the same place.
If you use MBT your order will be on MBT's ecn. If I use oanda, then I will not see your order, I will only see my "broker price".

Thanks Poeds & BobCards, at least I don't feel quite so naive now.

I use SPOT FOREX so Bob just so I understand correctly, are you saying I am best to use/see my brokers (filtered) price to trade?

Cheers guys.

Alan

[BobCards]

If you trade on MBT's spot ecn then of course you will need to see and execute on their datafeed to enter orders and access the liquidity you see.

I don't trade spot and I don't know what your data needs are; thus I don't know if you need a separate data feed for data analysis.

I just wanted you to see why someone would want\need a separate datafeed.

[Blash]

saintalan

Always remember you get what you pay for. I used IB's feed exclusively for a short time and then purchased Kinetick and boy what a difference. My tick charts are now GREAT. I suggest buy Kinetick and just use it for a month and see if you like it. If not just cancel. It's not like you signing a 1 or 2 year deal, it's just month to month.

[saintalan]

Thanks Blash, I understand what you say but what advantage do you gain re my original post?

I am not complaining about any cost.


Cheers

Alan

[Blash]

Check out the NT help file "Historical & Real-Time Data" you can do a search for this with the search tab or under the Contents section it's under Operations. Is MBT data filtered? I was at their site and could not find an easy answer to this question. A back up data source is ALWAYS a good thing to have too. Also, how is their data in the Time & Sales window for tape reading and also Level 2. If one does not have superior data reading the tape is a waste of time because its not giving you the whole complete story. Why read every other page of a book. If you need to make a decision base on available info, you would want to make the best decision possible and that requires the best information possible. In addition, for back testing strategies historical tick data for the bid and ask can really help.

[saintalan]

Many thanks again Blash.

Most of that went over my head but I will take a look at what you suggest.

At the end of the day I may keep eSignal as well as I get it free with a few trades on another broker, so then I'd have 3 feeds.

Cheers

Alan

[Blash]

Might I suggest.......(and I have zero connection to them aside from the fact that I did this but time is now an issue for me).....If you are free some mornings/days join with a $29 trail membership for 10 calendar days to day trade in the YM room at Puretick.com or at least sign up for their free videos sent to your email. It is awesome!!!

[saintalan]

Many thanks Blash.

Alan

[NinjaTrader_RyanO]

Hi saintalan,

Thank you for your post.

Regarding this issue you can review the historical data link that Blash had mentioned directly at:

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?historical_data.htm

Now, the issue with your data is that you will always need a connection a broker so that the trades you make within NinjaTrader can be placed on your live brokerage account, if you are using a Live Edition License.

The data from eSignal and Kinetick would be supplemental to your broker connection, but the reasons for supplementing your data with a data-only provider would be a preference but some of the reasons were touched upon. For more information on Kinetick:

http://www.kinetick.com/features

Then you can connect to both your broker and supplemental data within NinjaTrader:

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?multiple_connections.htm