Hello fellow traders,
I'd like to share with some of my ideas regarding solving one interesting Forex problem - Real Volume!
As we all know forex is decentralized and as the result we cannot see and use the real volume indicator in our trading. The only "volume" we see is the Tick Volume which is just a number of price changing events which happened - number of ticks up and down. But we understand that it's not really a volume - for example one can open a position with 1 lot - and it could be one tick, another guy then opens a position with 100 lots and it will be also only one tick. So as the result we have a volume of 101 lots (contracts whatever...) BUT the tick volume will show us only 2. So if on the next bar it will be another two guys - one opens 1 lot and another also opens 1 lots the real volume will be 2 (50 times smaller than previous one!) but the tick volume will be the same - 2.
So I've got an idea on how it could be solved.
First of all it would be interesting to hear - whether you're are really interested in have the real volume in your terminals? If you're fine with using tick volumes - good for you and you can skip the rest of this post
If an answer is "yes" - meaning you would like to use the real volume - than let's thing about following approach. Feel free to criticize it, post any of your ideas, comments etc - I would really appreciate it!
So how we can get the real volume? My idea is following. In order to get the real volume we need to have some centralized storage of the data - and this storage should be broker- and platform-independent. So if we have 10 brokers supporting mt4 platform and 5 brokers with let's say ZuluTrade - they should all see the same picture. The idea is to create a special indicator which - once added to the chart - will be posting the information on current positions on this terminal to centralized DB and on the way back will be receiving the information about total positions sizes for the given pair. This approach means that person who uses this indicator and wants to see the volume must voluntarily become the contributor himself. This is very important point and my question to the community here - how do you think, would you share some info about your positions in exchange of the info about other positions? In general - would it be interesting for people for such kind of exchange? Please not, that the information is 100% anonymous - it will not store any info about who got what positions - only the size itself.
Second thing - it will work only on big numbers. If there will be only 300-500 traders using it the data will not be reliable. So it will only work when there will be 1000's and tens of 1000's of volunteers/contributors.
So guys - any thoughts?