Steidlmayer Market Profile then who created Volume Profile? | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

Steidlmayer Market Profile then who created Volume Profile?

  #8 (permalink)

Super Moderator
Sarasota FL
 
Trading Experience: Intermediate
Platform: NinjaTrader, Sierra Chart
Favorite Futures: ES, YM
 
bobwest's Avatar
 
Posts: 5,152 since Jan 2013
Thanks: 39,838 given, 17,460 received


bunkerman View Post
I think they are the same and I have heard from one of Mr. Staidlmayer's friends that Volume Profile was just a name to allow TOS to NOT pay trademark or copyright fees.

Volume profile existed long before ThinkOrSwim, which is only a few years old, and it is different, although they will render fairly similar profiles of trader activity at different price levels. Market Profile is based on whether a given price level was visited, even once, during the trading day. Volume Profile shows the actual volume transacted at each price level.

It is true that the CME has the rights to the price-based Market Profile, and it does even today extract a fee from platforms that use it (which they generally pass on to their users.) Volume profile, which many find more useful, does not have any such issues.

TOS has a "TPO" profile indicator, which is the same as Market Profile but is not limited to 30-minute bars, and a "Monkey Bars" bar type, which is standard time-based Market Profile. I don't know how they deal with intellectual property issues, other than the fact that they are not fixed on 30-minute time spans. TOS also has a Volume Profile, which gets around the CME property rights simply by being based on different statistics, as are all Volume Profiles.

Bob.

Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to bobwest for this post: