I have read a few(understatement) of your posts and this is the first time I recall you saying that there was a leading indicator of volume for equities. I was hoping you would elaborate on how you use leading indicators of volume to trade the stocks breaking out in price on unusual volume. In general though to the thread operator, having the correct universe will help a lot with the overall profitability. A stringent high quality universe for trading long on Unusual vol break outs and a Stringent low quality universe for trading short on Unusual vol. take a look at Spydertraders journals for details.
There are so many ways to skin a cat. But for anybody that is looking for an "answer", or a starting point, or even a tweek, the man here is giving you a gem. TRADE THE SAME STOCKS EVERYDAY. If you had to buy it, it would costs thousands. It could be worth millions. Try it. Volume abnormality? You'll know it immediately.
I looked up the table. All I see is, Tuscon is a good place to live and trade. You get up 6 o'clock in the morning and trade until 1 pm. You still have a whole afternoon to do whatever you want.
Pro-rata volume (PRV), with a correlation table (showing expected volume by 30 minute increments through the day based on many normal days distribution) could be thought of as a leading indicator of volume for equities. The first derivative (positive rate of change) of volume in other words, giving an early indication of DU moving to FRV, say.
this is not that many trades. how far back was this approach backtested (using both the volume table and the best stock universe)?
Here's a 6 month backtest for you: http://elitetrader.com/vb/showthread.php?s=&postid=1370637#post1370637
start on EOD with STOCH (5, 2, 3); the signal is up through 50% for long and down through 50% for short. If you move to rocket level (15% a day) use the 15 or 30 min chart.
This is why God made gliders and thermals. Did you see me scurry over (white with 50 foot wingspan) Tiger today just before the rian hit. They thought it ws sudden but it was just the regular thermals moving across and the usual dust suppression we use out here.