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Rolling Average Trade Size

Quick Reference

PropertyValue
Dimensionquality
Categoryorder_flow
Versionv1.0
Output Columnavg_trade_size

Rolling average of individual trade sizes 鈥?measures typical trade magnitude

Formula

rolling_mean(size, window)

CDM Inputs

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

Parameters

ParameterTypeDefaultDescription
windowinteger60000Window for rolling average

Output

Column: avg_trade_size

Rolling mean of trade sizes

Market Intuition & Trading Rationale

Rolling average trade size measures typical trade magnitude: rolling_mean(size, window). A rising average trade size means larger orders are dominating 鈥?institutions, algorithms executing parent orders, or informed traders. A falling average trade size means the market is fragmenting into smaller trades 鈥?retail activity, algo slicing, or low-conviction flow.

Average trade size is a useful complement to trade_intensity. High intensity + small average size = many small trades (algo execution, retail). Low intensity + large average size = few large trades (institutional block trading). High intensity + large average size = broad institutional participation (most informative regime for directional signals).

Usage Cases

  • Flow composition analysis: Rising avg_trade_size 鈫?institutional flow dominating. Falling avg_trade_size 鈫?retail/algo flow dominating. Adjust strategy accordingly 鈥?institutional flow is more informative for direction; retail flow is noisier.
  • Execution algo parameterization: When avg_trade_size is large, your orders can be larger without standing out. When avg_trade_size is small, large orders will be conspicuous 鈥?slice more aggressively.
  • quality context: Used in large_trade_pressure pack 鈥?avg_trade_size provides the baseline against which size_threshold for large trades is calibrated.

YAML Definition

name: rolling_average_trade_size
description: Rolling average of individual trade sizes 鈥?measures typical trade magnitude
category: order_flow
dimension: quality
version: v0.9.0 (Beta)
required_inputs:
- size
output_column: avg_trade_size
output_description: Rolling mean of trade sizes
tags:
- quality
- volume
parameters:
window:
type: integer
description: Window for rolling average
required: false
default: 60000
formula: rolling_mean(size, window)