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How is futures volume reported (split/combined/?)

  #21 (permalink)

Trading Experience: Intermediate
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The shorter the time horizon is, the more it is normally crowded with algos.
Same with more liquid assets like e.g. futures as ES, CL, or ZN or stocks like FAANG.
As a result many classical businesses like e.g. human market makers, human short-term arbitrage,
or pit trading were virtually extinguished by machines.

The ideal climate for algos is tons of data combined with a high proportion of short-term retail order flow
- i.e. pure noise - which they can exploit. From there on it boils down to the only question of that race:
Who has enough speed to get the trade? - All others get nothing.

Interestingly many rookies just blindly jump into dabbling assets like index futures intraday and wonder
why they end up as a gnawed-off bone before they even had the opportunity to learn. (If you read some
threads on FIO, you will find that there are many people who shredded several accounts before they even
realized what their competition is (doing).)

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