Why cumulative delta looks different?

Discussion in 'Trading' started by heispark, Apr 11, 2023.

  1. heispark

    heispark

    I compared several different futures platforms and they are not identical. Unlike common indicators such as RSI, Stochastics, MACD, ...etc why cumulative delta looks different platform by platform? Any idea? IMHO, cumulative delta is a powerful tool but its credibility is questionable.
     
    Laissez Faire likes this.
  2. Real Money

    Real Money

    The NYSE dow 30 order flow market internal is the best ($TIKI).

    The other relevant order flow things to watch are bond spreads, the index futures basis, and USD crosses/indexes/commodity prices. The volatility trade is king anyway.

    Those orderflow solutions (market delta, cumulative delta, volume flow whatever) are kinda just reinventing the wheel. I mean, if the NYSE is giving it to you, then why do you need those other ones?
     
    Sekiyo and Laissez Faire like this.
  3. Using the same data provider? And on which markets?

    If using the same data the obvious answer must be that the logic of the indicator differs between the platforms.
     
  4. heispark

    heispark

    I use Rithmic and trade Nat Gas (/NG) only. My guess is cumulative delta needs data cumulation by data or platform providers and their cumulation method or period makes differences.... For example, Rithmic doesn't provide this cumulation data directly, instead, my trading platform (Motivewave) does this using their own server.
     
  5. heispark

    heispark

    This is today's /NG 1M chart. Unless its data is corrupt, cumulative delta gives a decent edge. I find it works nicely with /NG.

    2023-04-12_00-47-20.png
     
    Real Money likes this.
  6. Sekiyo

    Sekiyo

    Seen you have different calculation methods,
    For exemple Sierra Chart has different ways to calculate it.

    Orderflow can mean different things …
    That’s why we have different indicators.

    Flow of funds industries or ETFs wise,
    Orderflow TICK (up down tick) exchange wise
    Different Cumulative delta (Ask-Bid) calculations
     
  7. easymon1

    easymon1

    What is the calculation used by your platform, heispark?
     
  8. SunTrader

    SunTrader

    Needs to use NBBO data.
     
  9. Overnight

    Overnight

    He said he's trading just NG futures. CME futures do not have a NBBO system. It is what it is on the single exchange.
     
  10. Sekiyo

    Sekiyo

    #10     Apr 11, 2023
    heispark likes this.