When we login to there is live data provided by zerodha in browser (Kite/Pi) itself which shows different price movements, volume and lot more. But how is it different from paid data feed vendors for example velvenet technologies , global data feeds, amibroker or similar who charge a monthly fees for this data.
I hear a lot about data feed by Data vendors, but how is it different from live data provided by zerodha?
Brokers like us can provide data feed only within our trading platforms (within a trading login). Data feed vendors can provide it on any platform of your choice. Amibroker for example is an extremely popular technical analysis platform, to power this you need data feed which can be gotten from the vendor.
Apart from this, until now there was also a difference in quality of data being sent. Data vendors get data from exchange on TCP IP, whereas brokers on multicast. Once this data is received, it is in turn sent to the clients to power the platforms. You can read about TCP IP, Multicast etc here.
With TCP IP there can never be a packet loss, what it means is that every tick streamed by NSE would be received by the data vendor, who in turn streams it to the end user.
With multicast, if there is a packet loss, ticks aren’t received by broker and hence in turn not by the end user on the trading platform.
Hence the quality of data provided by a data vendor was better compared to what is received by broker (but the variance being extremely small). That said, exchanges have now decided that everyone should get similar data, hence all the data vendors have been asked to move to multicast. Post which, the quality of data should ideally be the same through a broker or through a data vendor.
Apart from what @Nithin said, would like to add
- What can you do with the data ?Can you run scanners on the data you get ? Kite does not seem to have any scannners ( I am not kite user, not aware of it).
- Although PI has some scanners, it is orphaned now. And has performance issues.
- If you get the data to a charting s/w, you can do lot more. Moreover, ease of use of UI is a big advantage.
- Giving a chart is a optional from broker’s point of view. They need not be super serious about it. They give just enough to attract and maintain the customers.
- For charting s/w companies + Data feed, providing high quality interface and performance is their survivability.
If you are a serious full time day trader, trading multiple instruments, then it makes sense to have the data feed+charting software.
Thanks for better answer. I was surprised answer from @nithin is not full. From what I saw and heard about him, I thought he was a honest leader but his partial answer which does not include all differences between brokers vs vendors’ ,( in this example kite/pi in comparison to data feed vendors) sounds biased. (may be he is too busy to include all) My respect is little reduced for him. Do you know any broker who provides data feeds and charting software similar to amibroker for example? and what is your choice of data feed provider which has most useful scanners? is it Amibroker or metadrader or ninja or ???
I thought you were question was what is the difference between data feed from broker and that from a vendor. My answer is related to that question.
Platforms like Amibroker and Ninjatrader are useful only if you know the respective programming languages. If it is only for looking at charts, I think Kite charts is more than enough.
Have you checked out Streak? Allows you to do a lot without any programming knowledge.
@curiousvi, Consider answer is from broker’s point of view and mine from trader’s point of view. It would be too fast to question his honesty based on one question… have no doubts about his thoughts and intentions. They have worked consistently to break the barrier of investing and trading . He has been in broking business for long now… His thinking interms of a small trader might have come down over a period of time (my doubts). Ofcourse as he is a businessman, you should expect him to be biased (which is quite normal).
I have a/cs in 2 discount brokerages primarily for tech. glitches. All brokers would get similar data. I use Amibroker+Global data feed (data pro, amibroker specific). If you want to trade with orderflow data then true data + ninjatrader is beter.
Thanks. Enrolled for the trial. Looks simple to use. Please include divergence (RSI, MACD)detection. If you could also include HH-HL LH-LL detections for Price action traders, it would help. S/R detection also is a must.
Can they also publish how much money (across the users) people have made on real trades (no. of wins, loses etc) on daily/weekly basis ? That will help to take a call.
What I am going to write dose not exactly match the topic but is close to it.
See when ever we people need data for back testing and testing our own strategies, wee need some mocked live data at tick level. So finally a perfectly minting machine (So I call the strategy designers as alchemists)can be used with real market.
Is it possible to provide mocked (old data) at tick level. where we can subscribe for a very small price. Or you create such a product for people like us. Personally I would be interested in F&O.
What do you exactly mean by tick level?
Usually the history data is provided at minute level. Which we use for back testing. But if we get this as live feed tick by tick. the live (mocked but real old data) feed is provided tick by tick.
Level : interval
Wondering what kind of back testing requires this data for retailers? if it is okay with you can you please let me know what type of strategies you are testing?
See, If you are working on Options. Its very volatile. Its within 10 seconds you get to see the twist. So totally counting on previous candle can generate you huge loss.
Let me take a hypothetical situation.
I have set stop loss if the previous candle is negative and goes below some x. but because of some market conditions the it falls 50 % of x then the trader would have to incur huge loss. For this we need to immediate sell. This condition can not be simulated in back testing.
SL normal = if last candle closes below y.
Immediate Sell = if the current price is less than 30% of y. this condition would be checked at every tick.
Also Sometimes I need to see if how many times it crossed below given band or above a certain band. this increases the probability of correct future moment prediction.
I think what you meant is kind of a sandbox environment, where everything is mocked.
This is provided for API users on every first Saturday.
Historical tick data is very hard to store and deliver.
I din’t get this but we don’t have any historical tick data.