“Prop traders have to make money in the markets and it’s been increasingly difficult to do that. The main issue is the lower volatility, and when there is volatility it’s this mad volatility which is difficult to trade”
Low volume and narrow require a lot more patience and looking for trades at the edge looking for vwap reversion.
This is a chart of first 60 mins (Initial Balance) vs OHLC. I just took a 60 min export and filtered by “15.30” in the time column (it is 3.30 pm here when the IB is set).
It shows that not all low volume days lead to pullbacks, they can also signal lack of supply.
Initial Balance and daily Volume are closely correlated.