I've been looking at client sentiment data (how clients are positioned with a broker) and wrote a brief blog post on some findings. Many brokers provide client sentiment data (Oanda, FXCM, Saxo etc). Has anybody spent time looking at client sentiment data and found it useful?
Yes, I've found Oanda order and position book data marginally useful when conditioned on other indicators. Interestingly, the Game account books seem to be as information-rich as the Live account books without being perfectly correlated.
... even then, you're only seeing a minuscule sliver of information. You're missing 99% of the market.
Analyse garbage and you get garbage. Stop analysing Client sentiment data. Instead go analyse the charts !
Been there, done that. I've spent quite some time with analysing Oanda's order book in conjunction with myfxbook's Community Outlook. I created analyzer running in Azure cloud, loading myfxbook data every minute, loading Oanda's data every 20 minutes. I got tons of data. I spent days in RStudio trying to slice and dice the data into some reasonable result but have not found anything significantly useful. Having said that it does not mean it's impossible, it can just mean that I went in wrong direction....