I know some people use a combination of futures volume in a combination with Forex trading. I know for the most part Forex trading does not have volume readily available unless you are a institutional investor. Then you can use like FXCM. Any feedback would be great!
What an interesting concept. Would be interesting to see the actual system and how they combine the data.
What comes to mind is using the volume feed from 6E futures and then somehow comparing this to the spot forex data feed. But have not done any backtesting on this idea. Would be great to hear from someone already doing this.
Would be interesting to see how much correlation exists between 6E and EUR/USD data feed.
Last edited by sledmt; July 22nd, 2015 at 02:25 PM.
Reason: adding more text
That's exactly, how one person I know does it. Just wondering if it is common practice or a rarity.. It is a more manual process and I don't think any systems incorporate the two. But that would be neat if a system Or add on did.
On a side note, I know that FXCM does provide an directional forex volume number for minute charts and greater timeframe. Don't know how closely this would mirror the volume numbers from the 6E future data.
I don't find futures volume useful in trading forex. One reason is if you are looking at EUR, it is not just EUR/USD alone which the market participants are involved with. The sellers or buyers can be working on others EUR crosses such as EUR/JPY, EUR/CHF and EUR/GBP which has no futures contracts. These crosses do have an impact on EUR/USD
I always check the pip spreads before trading. That gives me an idea of what I am paying for liquidity. FXCM's Marketscope has a front panel that gives you a list of the currency pairs with the pip spreads. Marketscope has volume and something called "transactions" but I never use it.
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