There are a few things to keep in mind when it comes to developing footprint trading strategies: 1. Know your asset class. Each asset class has its own unique characteristics and tendencies that can affect how a particular trading strategy behaves. For example, commodity stocks tend to have longer holding periods than stocks in the technology, telecommunications, or financial services sectors. 2. Understand your instrument selection. Different assets will exhibit different performance characteristics when traded using different instruments. For example, stocks tend to experience more volatility when traded in smaller sizes, while commodities tend to exhibit more continuity in price movement over time. 3. Understand your risk tolerance. Each trading strategy carries with it a certain degree of risk. It is important to know how much risk you are willing to accept in order to maximize your profits. 4. Consider liquidity. The availability of liquidity is a critical factor in determining how well a particular strategy will perform. Volume is a critical indicator of liquidity. When volume is high, it suggests that the underlying securities are being traded frequently and that buyers and sellers are engaged in active transaction. When volume is low, it indicates that the securities are not being exchanged frequently, and

they may be less liquid. There are a few different things that you can look at when trying to determine why volume might be low. You can examine the price of the assets being traded, the number of buyers and sellers, and the speed at which the assets are moving. Price If the price of the assets being traded is low, it may be because the security is not being exchanged frequently and is less liquid. When volume is low, it indicates that the securities are not being exchanged frequently, and they may be less liquid. Number of Buyers and Sellers The number of buyers and sellers can also be indicative of the liquidity of the assets. If the number of buyers and sellers is low, then it may be indicative of a less liquid security. When volume is low, it indicates that the securities are not being exchanged frequently, and they may be less liquid. Speed of Movement Another indicator of the liquidity of a security is the speed of movement. If the assets are moving quickly, it may suggest that the security is more liquid. When volume is low, it indicates that the securities are not being exchanged frequently, and they may be less

liquid. footprint charts are a popular tool for securities research, as they can provide a visual representation of the volume of a security’s trading activity. This information can help analysts determine whether a security is more or less liquid, and whether it’s likely to be traded frequently. One of the most important things to remember when reviewing Footprint charts is to be aware of the Volume-Weighted Average (VWA) formula. This formula helps to determine the importance of each security’s trading volume relative to the rest of the market. A high VWA ratio indicates that a security is disproportionately influential in terms of trading volume. Keep in mind that Footprint charts are only a snapshot of the market at a given moment. While they can be a valuable tool for securities research, always remember to use other sources of information, such as technical indicators, to make more informed investment decisions.