When entering the foreign exchange market, it’s best to come prepared. Traders can face allocation and execution challenges when trading in less liquid currencies or trying to maximize alpha capture without creating price impact. Incorporating volume forecasts in either algorithmic or non-algorithmic trading strategies can lead to a better view of your trading capacity and better risk management while minimizing price slippage.
Using CLS’s FX Forecast data can enable a more accurate view of FX markets on an hourly basis. Delivered on a daily basis for the week ahead, you can achieve more clarity around timing your trades to better optimize your strategies in liquid and illiquid pairs and identify correlations between volume and volatility.