Smaller/faster bars would be unwise as the only time a six-tick scalp with a high probability of small risk would present itself would require a confluence of factors derived from a longer time frame setup, and a < 2K volume bar chart could not provide that. Speedo, can you clarify about knowing Al for years, have you have traded with him and can you testify as to his real-time expertise in execution and price prediction as an ES day trader?
Good question. E-mini S&P500 future is very heavily traded typically getting over a million volume a day. With a faster bar like 500v chart, it will display so many bars making harder for me to see previous highs and lows as well as pullbacks in one screen. With 2000v chart, I am expecting about 250 bars or more within 2 hour period, which I can handle no problem. Second reason is that with 500v chart, range from top to bottom is too tight, which preventing me from seeing the whole picture. In conclusion, in my opinion, for targeting 6 ticks, 2000v shows the best for now. If ES gets twice the volume with higher volatility, I am willing to increase the number of volume per bar. Hopefully this answers your question.
We used to trade charts and trade ideas back in the early 2000s. At the time we were both trading the old Russell 2000 contract on short TF tick charts. He sent me his first book but by then he had moved to the ES and 5 minute charts and his way of looking at price action had changed and gotten more complex. I can speak to his intelligence and work ethic and believe he can trade but have no current proof of that.
That's interesting, his method and market changed and soon after that he released a book teaching that method/market context. That seems somewhat hasty, for a profitable day trader to switch methods and then go public so quickly with the new method.
Why are you guys so infactuated with volume bars ? Tick bars make a lot more sense (especially for algo trading) and aren't affected by large volume players in the market.