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Large Trade Frequency

Quick Reference

PropertyValue
Dimensionquality
Categoryorder_flow
Versionv1.0
Output Columnlarge_trade_frequency

Frequency of trades above a given size threshold 鈥?counts large trades per window

Formula

rolling_sum((size > size_threshold), window)

CDM Inputs

ColumnCDM TableDescription
sizecdm_trade_enrichedTrade data enriched with bar context 鈥?price, volume, side, trade type

Parameters

ParameterTypeDefaultDescription
size_thresholdfloat1000.0Minimum trade size to be considered large
windowinteger100Rolling window size (row count) for counting large trades

Output

Column: large_trade_frequency

Count of trades above size threshold per rolling window

Market Intuition & Trading Rationale

Large trade frequency counts trades exceeding a size threshold per rolling window: rolling_sum(size > threshold, window). Large trades are the footprint of institutional activity 鈥?retail traders rarely execute in size. A spike in large trade frequency means institutions are active, and their direction (captured by signed_volume or trade_sign on those large trades) reveals informed positioning.

Large trades also consume more liquidity. When large_trade_frequency rises, market impact increases 鈥?these trades walk the book further. This makes it a useful leading indicator for execution costs: when institutions are active, your own execution costs will be higher because you're competing for the same liquidity.

Usage Cases

  • Institutional activity detection: Rising large_trade_frequency signals institutional participation. Cross-reference with signed_volume on large trades 鈥?if institutions are predominantly buying, join the trend; if selling, fade or exit.
  • Execution cost forecasting: High large_trade_frequency 鈫?higher market impact for your orders. Widen your execution schedules or reduce order sizes during these periods.
  • quality context: Used in large_trade_pressure pack 鈥?large trade frequency provides the activity baseline; the pack's signal features (volume_above_percentile) capture the price impact of those large trades.

YAML Definition

name: large_trade_frequency
description: Frequency of trades above a given size threshold 鈥?counts large trades
per window
category: order_flow
dimension: quality
version: v0.9.0 (Beta)
required_inputs:
- size
output_column: large_trade_frequency
output_description: Count of trades above size threshold per rolling window
tags:
- quality
- flow
- volume
parameters:
size_threshold:
type: float
description: Minimum trade size to be considered large
required: false
default: 1000.0
window:
type: integer
description: Rolling window size (row count) for counting large trades
required: false
default: 100
formula: rolling_sum((size > size_threshold), window)