Hi guys,
My friend is using a strategy consisting of trading only during extreme volatile situations, such as NFP. Right now, he has a couple grands and this strategy works perfectly.
However, as his trading capital increases, he also wonders if him alone could really see the situation where his broker starts to lack liquidity for his order during this kind of situation.
My point is: Although volatile news releases could see a lack of liquidity, but since this is the most liquid market in the world, the liquidity could still be pretty decent for one single retail trader.
Although there is no true answer to this question, can you give me a very approximative trading size beginning to which we need to mind the possible lack of liquidity in volatile news realeases?
ex: number of lots traded in these situatinos?
Again, no good answer exists in this kind of situation. Any kind of help is welcomed.
Thanks!
Wllen1
My friend is using a strategy consisting of trading only during extreme volatile situations, such as NFP. Right now, he has a couple grands and this strategy works perfectly.
However, as his trading capital increases, he also wonders if him alone could really see the situation where his broker starts to lack liquidity for his order during this kind of situation.
My point is: Although volatile news releases could see a lack of liquidity, but since this is the most liquid market in the world, the liquidity could still be pretty decent for one single retail trader.
Although there is no true answer to this question, can you give me a very approximative trading size beginning to which we need to mind the possible lack of liquidity in volatile news realeases?
ex: number of lots traded in these situatinos?
Again, no good answer exists in this kind of situation. Any kind of help is welcomed.
Thanks!
Wllen1