# MM CFD providers and TA



## swingstar (17 August 2006)

Since MM CFD providers have differing prices to the ASX, would it pretty much make TA redundant using their data? 

How are the prices actually calculated, just a similar model to what the ASX uses? Are they influenced much by the real u/l, or are they just moved by the CFD provider's participants?

Edit: Another thing... if one was to trade using a MM, should you use their data for analysis or the ASX?


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## Ageo (17 August 2006)

Swingstar i base my analysis on Australian Stock Report (as they trade CFD's). Bascically i then work around that.

Works for me


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## swingstar (17 August 2006)

I'm paper trading a rule-based system using CMC data, and a lot of times entry signals are on CMC's data but not the ASX, so I'm a bit concerned. I suppose it should be fine if I make sure I use CMC for the duration of the backtest? Only problem is, I'm not sure how their prices are evaluated... if it's based on some unknown and not market variables, then I'm not sure if I should expect the same or similar results using a DMA provider, which I will do with real money (probably Mac).


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## porkpie324 (17 August 2006)

If this helps, i use CMC and trade shares as well as the SPI  , although have just started on the SPI, seems to work ok for me so far, porkpie


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