Setting volumes to work with different tools

Volume search cluster profile

Now I’ll tell you what I shouldn’t tell. My partners and colleagues believe that every trader should always keep quiet on it.

But I decided to “open my cards”, because I do not want and do not even have any right to remain silent about it in my mailing. Read this letter to the end, and you will get it!

It’s about individual program settings. Properly configured data will be more informative to give you the best entry signals. This is a great advantage over other.

To begin with, what you have to do by yourself. Initially, you need to configure the following information:

  1. Volume in clusters.
  2. Volume in vertical histograms.
  3. Volume in horizontal histograms.

I usually use 2 level volume designation – an important volume and extra volume. An important volume is a volume which happens in less than 10% of cases. Extra’s less than 5%.

In order to configure the alarm volume in clusters, I use the Volume Search module of Volfix platform. Choose the period (for futures – the start date of the current and the previous contract, for stocks – 3-6 months), choose the interval (15 and 60 min.), set the correct Price Scale, which is displayed in my chart, and click Apply. Then I make a selection by the column Max Volume, and watch the values of 5% and 10%.

For example: Date from 1/1/2016 till 9/3/2016, 6E, Interval 60 min. Price scale 0.0002.

Volume search 2

There are 1083 periods, 5% of 1083 is 54 – I look for a MAX value in 54th cell, and memorize it. (it’s 3777)

Then I see a value in the 108th cell (10% from the 1083), and memorize it.

Volume search 3

Then I open Cluster Profile chart > SETUP > Volume Limit – set the value in Limit 1 – as an extra, in Limit 2 – as a important volume. Then click Apply, and the picture on the chart immediately changes.

Volume search 4

In the same way you can adjust the vertical bar graph using the data in Volume Search, in Total Volume column. In Cluster Profile chart you can set it up in the following way: SETUP>T.Hist. Volume Limit.

Setting horizontal volumes is much harder. As they are accumulated over different periods, and each new period will add data. Therefore it is better to use just three periods: daytime – for intraday trading, quarterly and annual. To do this, you will need to use the module ALL PRICE.

Set the predetermined period, corresponding Price scale, and in Volume column you’ll see the same 5% and 10% of the volume signals. In Cluster Profile chart you can set it up in the following way: SETUP>P.Hist. Volume Limit.

Then look at the chart again. You’ve probably noticed how it changed. You should see significant and extra volumes immediately. Try to test your strategy on historical data, using the volumes that you have set.

You can also watch our videos how best to adjust the volumes Here.

If you have any difficulties – please, email me. I will gladly answer.

At this link I will show you the volume setting on the 6E futures (СМЕ, euro / dollar pair).

Have good profits!

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