It seems to show sizable moves, which is perfect for daytrading, but the volume seems pretty tepid. Is it viable to daytrade this without incurring a massive slippage?
It obviously depends on how you trade. Spreads are a problem if you need immediate fills and take liquidity from the order book. But spreads can make you money if you keep an order at just the right place on the order book, although this isn't easy to do these days and requires a great algorithm and automated trading. The question should be: Are you making money trading palladium? Don't let slippage or anything else make your decision for you.
It us one of the worst futures for day trading due to the horrific volume, horrific margin requirement
As I've tested my algo on various instruments, PA yielded the highest profit margin. But when I saw how illiquid it was, it wasn't very appealing, especially considering that my system is based solely on market orders. For it to work, the order needs to be filled almost immediately. But with such a wide spread, not sure if it's feasible.
Your correct, backtesting PA has highest profit margin, but slippage is a horrible plus gaps leave me gasping. Options just as bad. Volume is a joke. Coffee has good moves day trading.
Extremely dangerous market period, not just for day trading but in general. Must have VERY deep pockets but look at volume on the 5 minutes chart on a move that was $4800 in 15 minutes....Expect slippage, expect inability to get in and out at prices you think.... On paper/ chart looks like an attractive market but not the case in my humble opinion.
TradeStation doesn't have a daytrading margin rate, standard overnight is currently $37950. No thanks.
I trade Bitcoin Long term and has wild moves, trade lumber as well long term, but to day trade either, think profits be luck.