Date Padding and Price Adjustment

Hello, how are you, a newbie here.
I hope my question is not too ridiculous and thanks in advance to whoever answers me.
I'm not sure how I should configure Date Padding and Price Adjustment to backtest systems or browsers.
Any suggestions or guidance on this?
Thank you so much

What DATA SOURCE are you using?

Please follow this advice: How to ask a good question

If you are asking about Norgate, consult their documentation: Norgate Data - AmiBroker Usage

Thank you very much for answering me Mr. Tomasz.
Yes, I use Norgate Data although my question was generally for traders who use AmiBroker to do Backtests, Explorations, etc.
Is there any recommendation on whether it is better to use data with/without dividends, with/without splits, filled with/without sp500... that's what I mean.
As I read, it is recommended, for example, not to adjust the data to dividends so as not to distort the results...everything I find is very similar...it depends and that is why I am not clear.

@yonsi72, a full answer to this question, about the differences and purpose of the Norgate plugin regarding Padding, Price & Adjustments, is the realm of Richard Dale @NorgateData.

One thing that is important to take into account is to use their constituency functions (see @Tomasz answer link) to verify when a stock in their watchlists "???? Current & Past" was part of an index, otherwise, you may incur a serious bias, trading stocks that were not yet included (knowledge of future events).

Moreover, you may need to use additional Norgate functions to reference the original unadjusted Close and Volume (depending on your plugin configuration settings) if your formula uses some "filter" on min/max price and/or volume/turnover to generate signals.

We provide a variety of adjustment methods to suit user requirements - the exact usage of them depends upon how you have coded your trading system, and which instruments you are trading.

Take, for example, a trading system that trades rotates through different ETFs depending upon market regimes. Let's say one of the ETFs that is traded is USFR (WisdomTree Floating Rate Treasury ETF).

If you use the adjustment of "capital events" only, which is configurable in the Norgate Data AmiBroker plugin:

Then your chart will show this:

Let's say your trading system had entered this in early January 2023 - on a backtest in AmiBroker you'd be showing very little return on this ETF has barely moved price-wise. However, in reality you would have received a number of dividends since then.

To incorporate the dividends into Amibroker you have two methods:
a) Create additional (complex) low level custom backtest code to "inject" the dividends into your account
b) Use a different adjustment method that incorporates dividends by adjusting prior prices.

Using b) is much simpler - just a couple of clicks:
image

The chart then changes to this:

Using our previous example of an entry in Jan 2023, your position in Amibroker would now be showing an increase from $46.50 to $50.34 today, providing a better represtation of your return.

As to padding - this also varies. You might want to use padding if using a rotational system on illiquid securities that don't trade each day (All Market Days padding), or trading across different venues - such as US and Australia that have different holiday schedules (All Week Days Padding).

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Thank you very much Beber!

Thank you very much for this help.
I really appreciate this customer support from NorgateData.

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