Disliked{quote} So now you have the bars OCHL AND the volume. The volume is very interesting. One thing to remember though about volume is, that you are messuring the volume at your brokers data - nothing more. So volume might be very different at another broker during the same bar. But still a nice parameter to have.Ignored
The argument I've heard before in regards to volume being so broker specific is a group mentality type of argument.
If 90% of traders are putting in longs on NASDAQ cause of X and y and z Indicators, then usually that fits around the board on other brokers.
When I have two charts running side by side, one through topstepX and one through my personal tradeovate acct, volume and volume profile are pretty much identical. Volume amounts can vary significantly depending on the size of the broker and their client base. But the general consensus of more going long or more going short stays the same.
Actually a cool experiment might be to do volume based trades solely on either the broker with the absolute highest volume amounts and some relatively new broker(with less clients) that has less volume amounts.
Maybe even find what broker has the highest number of hedge funds as clients and see how their volume is being distributed since hedge funds tend to be on the opposite side of trades as a lot of us.
Curious if something like that could actually be a leading indicator.
Hedge fund broker > volume significantly rises(institutional activity)
Large retail broker > volume picks up following price action due to initial institutionial activity.
Small retail broker > slower reaction but the same none the less. Volume picks up due to price action.
There is also a chance that could be all nonsense as I don't fully understand exactly how institutions and hedges funds trade TBH.
For example I don't understand high frequency trading. How are these guys placing SO MANY TRADES in meer seconds without racking up an Exuberant amount of commissions and contract fees??? Anyways just a random side note question I've always wondered. Do they broker themselves and not have to pay the fees? I thought fees for futures contracts goes to CME or whoever provides those contracts. I dunno
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