What are the differences? Say an illiquid instrument vs a liquid instrument such as EURUSD, does it move better “technically”? Does higher volume help you to push price with smart money? Are your stats better on a liquid or illiquid market?
Sorry I meant high volume instruments like the EURUSD compared to say a random cryptocurrency or third world currency.
Every instrument has their own factors that make them move. Instruments as in equities, forex, crypto, etc... Liquidity is key, you want to get in and out. I don't know how you would formulate a trading strategy based on an illiquid market. I would imagine the slippage alone would render the best models useless. I could be wrong though. I'm no expert. Maybe theres some crazy spread trading strategy that attacks illiquid markets with crazy bid/ask prices and does some magic.
I will do such trades in stocks so long as they have somewhat decent options so I can hedge, I will sell short a down trending heavy volume company/buy lighter volume company as a spread in same sector, they don't come up too often, but marvels of automation...
%% Depends; RE is the ultimate low[ or No volume LOL] volume market+ profitable. So it really depends.