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[USER=725]@Richard Dale[/USER], thank you for raising an important issue - you make an excellent point in cautioning new traders about the potential pitfalls of using Norgate's lower-tier data subscriptions without a full understanding of the limitations. Your feedback highlights the need for a clear disclaimer on our site to ensure transparency about the biases that can be introduced by limited historical data.

Thinking of Using Norgate Data? Beware of the Pitfalls for New Traders
If you're a new trader looking to backtest potential trading strategies, you may have come across Norgate Data as a provider of historical stock market data. While Norgate can be useful, new traders should be very careful about putting too much faith in results obtained using their entry-level data subscriptions.

Norgate offers tiered subscriptions for Australian stock data. The cheapest "Silver" subscription only includes the last 10 years of data for currently listed stocks. This seems to allow you to backtest strategies at an affordable price. However, this limited data can be dangerously misleading if you don't understand the implications.

More experienced traders know these kinds of limited data sets are riddled with biases like survivorship bias and lookahead bias. Survivorship bias means failed companies are excluded since you only have data for companies still listed today. Lookahead bias means you have future index constituents in your historical data.

These biases can lead to grossly overestimating the potential returns of the strategies you backtest. Strategies optimised in such flawed data often perform much more poorly in the real world. This is why professional traders pay large sums for clean, unbiased data sets that accurately reflect historical market conditions.

As a new trader, you likely don't have the experience to anticipate these pitfalls. It's easy to fall into the trap of thinking the strategies you develop are far more profitable than they really would be. You could end up "allocating significant trading capital sub-optimally" or even "losing money on strategies" that appeared sound on biased data.

My recommendation is to think twice before using Norgate's entry-level packages for rigorous analysis as a new trader. The data gaps and integrity issues likely outweigh the small cost savings. Consider paying more for their higher-tier offerings or alternative data sources to avoid developing misleading strategies.

Skate.

<blockquote data-quote="Skate" data-source="post: 1242291" data-attributes="member: 57364">[USER=725]@Richard Dale[/USER], thank you for raising an important issue - you make an excellent point in cautioning new traders about the potential pitfalls of using Norgate&#039;s lower-tier data subscriptions without a full understanding of the limitations. Your feedback highlights the need for a clear disclaimer on our site to ensure transparency about the biases that can be introduced by limited historical data.&nbsp; Thinking of Using Norgate Data? Beware of the Pitfalls for New TradersIf you&#039;re a new trader looking to backtest potential trading strategies, you may have come across Norgate Data as a provider of historical stock market data. While Norgate can be useful, new traders should be very careful about putting too much faith in results obtained using their entry-level data subscriptions.Norgate offers tiered subscriptions for Australian stock data. The cheapest &quot;Silver&quot; subscription only includes the last 10 years of data for currently listed stocks. This seems to allow you to backtest strategies at an affordable price. However, this limited data can be dangerously misleading if you don&#039;t understand the implications.More experienced traders know these kinds of limited data sets are riddled with biases like survivorship bias and lookahead bias. Survivorship bias means failed companies are excluded since you only have data for companies still listed today. Lookahead bias means you have future index constituents in your historical data. These biases can lead to grossly overestimating the potential returns of the strategies you backtest. Strategies optimised in such flawed data often perform much more poorly in the real world. This is why professional traders pay large sums for clean, unbiased data sets that accurately reflect historical market conditions.As a new trader, you likely don&#039;t have the experience to anticipate these pitfalls. It&#039;s easy to fall into the trap of thinking the strategies you develop are far more profitable than they really would be. You could end up &quot;allocating significant trading capital sub-optimally&quot; or even &quot;losing money on strategies&quot; that appeared sound on biased data.My recommendation is to think twice before using Norgate&#039;s entry-level packages for rigorous analysis as a new trader. The data gaps and integrity issues likely outweigh the small cost savings. Consider paying more for their higher-tier offerings or alternative data sources to avoid developing misleading strategies. Skate.</blockquote>

[QUOTE="Skate, post: 1242291, member: 57364"] [USER=725]@Richard Dale[/USER], thank you for raising an important issue - you make an excellent point in cautioning new traders about the potential pitfalls of using Norgate's lower-tier data subscriptions without a full understanding of the limitations. Your feedback highlights the need for a clear disclaimer on our site to ensure transparency about the biases that can be introduced by limited historical data. [B]Thinking of Using Norgate Data? Beware of the Pitfalls for New Traders[/B] If you're a new trader looking to backtest potential trading strategies, you may have come across Norgate Data as a provider of historical stock market data. While Norgate can be useful, new traders should be very careful about putting too much faith in results obtained using their entry-level data subscriptions. Norgate offers tiered subscriptions for Australian stock data. The cheapest "Silver" subscription only includes the last 10 years of data for currently listed stocks. This seems to allow you to backtest strategies at an affordable price. However, this limited data can be dangerously misleading if you don't understand the implications. More experienced traders know these kinds of limited data sets are riddled with biases like survivorship bias and lookahead bias. Survivorship bias means failed companies are excluded since you only have data for companies still listed today. Lookahead bias means you have future index constituents in your historical data. These biases can lead to grossly overestimating the potential returns of the strategies you backtest. Strategies optimised in such flawed data often perform much more poorly in the real world. This is why professional traders pay large sums for clean, unbiased data sets that accurately reflect historical market conditions. As a new trader, you likely don't have the experience to anticipate these pitfalls. It's easy to fall into the trap of thinking the strategies you develop are far more profitable than they really would be. You could end up "allocating significant trading capital sub-optimally" or even "losing money on strategies" that appeared sound on biased data. My recommendation is to think twice before using Norgate's entry-level packages for rigorous analysis as a new trader. The data gaps and integrity issues likely outweigh the small cost savings. Consider paying more for their higher-tier offerings or alternative data sources to avoid developing misleading strategies. Skate. [/QUOTE]

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