$INDU at open vs IAB

[fastflyer]

Something that I have wondered why for quite some time -

Why does E-signal's value for $INDU often vary so dramatically compared to Interactive Brokers value for INDU at the begining of the trading day ?

When the open is about the same as the previous day's close ( per IAB ) , E-Signal and IAB are about the same at the open.

When the open is far away from yesterday's close ( per IAB ) - like today May 19 - it takes E-Signal quite awhile to "agree" with IAB about where the Dow 30 is.

The values for the mini futures (YM) is comfortably the same for E-Signal and IAB regardless of a gap open or not ( unless that volume freeze hits ) .

Best Regards,
Glenn

[eSignal_AveryH]

Using the date 5/14/2010 of this post we do see a very big difference between eSignal and IB's opening prices.

eSignal Opening price 10780.68

IB's Opening Price 10724.90


We've also compared the opening to Yahoo Finance as well as the Dowjones.com and as you can see eSignal matches their open.

After much research and several calls it appears that IB may be adding the pre and post market trades to the opening and closing numbers causing them to have larger gaps the other providers.


Hopefully this helps answer your questions.

[fastflyer]

Many Calls ?

Well that was extremely considerate, Thank You. What I've been thinking along the way is IB calculates the Dow 30 formula real time, or about as fast the the little hamsters can, running in place the way they do on that wire wheel in the cage. Uh oh, is that my attitude, bad sense of humor showing again : ).

I guess my question is, how is E-signal doing the calculation ? Or, are we relying on the NYSE's feed when Charting E-Signal's value ?

If so, would it not be better to use the IB method. Since, " Are We Not Men ? " I never liked that song, and I've never been DEVO. ( BAADDD sense of humor again )

Or at least another possibility would be to have something like, as an example, YM #F=2. In this case, a suffix to the symbol would denote the calculated value without having to wait for the good folks at the NYSE. We all know why we call them good. We get to absorb their liquidity.

Humor and attitude aside - I don't think you folks get enough compliments.

My humble opinion is, you guys are incredible.

Please Keep Up The Great Work.

Best Regards
Glenn

[eSignal_AveryH]

Let me start with a very BIG THANK YOU!! We always appreciate a kind words and it is much appreciated. It people like you that make it easy for us to continue doing what do.

On to business:

I guess my question is, how is E-signal doing the calculation? Or, are we relying on the NYSE's feed when Charting E-Signal's value?

We do get our quote from the NYSE, it help reduce the number of discrepancy reports and it make is easy to verify when reports come in.

Would using the method IB uses be better? This is a matter of option and when the number is incorrect there no point of reference that can use to verify the information be give. We also have to consider when the instruments within the list change. This means having to calculate a new divisor number for the average to continue to be correct. A good example would be 8/Also when instruments within the list changes (June 5th 2009, GM and Citigroup removed and Cisco and Microsoft Added) changing the divisor from 0.125552709 to 0.1323190125. Not that the instrument change often but it still work that would have to be done.



Thanks again.