Continuous Reliability
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- Roundtable Knight
- Posts: 154
- Joined: Fri Apr 22, 2005 9:14 pm
- Location: Vancouver, Canada
Continuous Reliability
I have been backtesting stocks for a while and would like to start looking at futures. I have been holding off on this because I worry that the testing may look OK but real life is going to be much different because of inaccuracies caused by continuous contract gymnastics, something I am obviously unfamiliar with coming from the stock world (though don't get me started about splits!). I am wondering how legitimate this concern is, or if am I just not sufficiently knowledgeable/experienced on this topic?
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- Roundtable Knight
- Posts: 1842
- Joined: Tue Apr 15, 2003 11:02 am
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Continuous contracts are not inherently unreliable, however, you should take into account the costs of doing a contract roll if you do any backtesting using continuous contracts.
I wouldn't let this aspect of futures trading scare you away. A much more difficult problem for most people is the amount of capital required to trade many different futures contracts.
- Forum Mgmnt
I wouldn't let this aspect of futures trading scare you away. A much more difficult problem for most people is the amount of capital required to trade many different futures contracts.
- Forum Mgmnt