The first sentence of the paper pretty much supports @schweiz viewpoint vs the 1 lot theory. Abstract This research discusses optimal limit order strategy for large institutional investors. Institutional investors are influential for the market due to their large position. Thanks for the link. Some bedtime reading
ROFLMAO new category “trailer park traders” I live much of the time in a 40 ft motorhome. At times I am racing down the interstate trading away. Could we please make another category of traders too ...”motorhome traders” PS the market is 95% institutions trading against institutions. They could care less about the trailer park 1 lot trader and even less about a motorhome trader. They are after the BIG BUCKS not the does.
Perhaps the articles are written by ivory chair professors that haven’t traded a day in their life and are just spouting out nonsensical info and far from reality info between their teeths. On the otherhand, they may be really smart LOL. The market “in the real world” only moves 1 tick because there is an institution that wants it to move that tick. The trailer park 1 lot is not going to move it unless the trailer park trader quits chewing baca long enough to hit the offer. And that offer is there ONLY because there is an institution making the offer. I should know. I am a motorhome trader. MARKETS only move because bullish or bearish institutions want them to move. Whether it is 1 tick or 50 ticks. The grandeur of being the 1 lot trader that moves the market is egotistical and such w.v. distortions will eat away the “trailer 1 lot trader’s” profit 1 tick at a time until he has no more baca money.
do you think a.i. will debate like we do? lol. all good points i trade out of my food truck. franks and beans for sale daily..now wheres that baseball
80% of futures trades now a days are all 1 lots so how uvcan even begin to say a 1 lot doesnt have impact.for the love of god..i sold one after the fed decision and look what i did to the mkt!! lol.. next time you are about to trade...dont forget my 1 lot could come outta nowhere and get you!!!..
Wrong, it should be around 50-55% only. Average size should be 3-5 contracts. Depends of which day you take. Check time and sales. Oh, you are a real professional full time (food) trader! ROFLMAO.
LOL Market (in this case ES)only moved because the institutions pre-positioned themselves in what they “thought” or considered to be a neutral price position while they awaited the announcement. Since both bearish and bullish institutions were awaiting to see the reaction to the news (as neither side really knows beforehand) one side or the other will be right in their assessment and the other side will be wrong. Bam....bears win ...bullish institution scramble to get out...bears selling like there ain’t no tomm... together those pressures form that big bar down..then pb as bulls assert themselves (i.e. bullish institutions not 1 lot retail traders) begin pushing back....probing...but....bears win again...and Bam..that forms the second big bar down ..then third..and the 4th..and the fifth. Little 1 lot trade trailer traders didn’t do this. ROFLMAO as i type it is more balanced out and a triangle is forming. It can break in either direction. But the context pressure is down. PS the markets always move to a level to rack up the most transactions.
is there some kind of data that gives us insight into the percentage of total volume that is institutional vs retail? for example, daily volume for NQ futures so far is a little over 680,000 contracts. it would be interesting to see how much of that volume is done by institutions. i'm actually not so sure that markets "only move" because of bullish/bearish institutions like volpri is suggesting. there were probably at least more than 100,000 retail traders globally today trading NQ. if the avg contract size is 2-5, that's a huge % of the daily volume. this notion that the whales move markets i think is false. this is true for the cryptocurrency markets but for CME futures markets, esp with their position limits, it sounds far-fetched.