What Is The Difference Between Orderflows Trader And Other Order Flow Software?
This is a question I am often asked by potential users. I have users that are brand new to order flow and users that have switched from other software such as Market Delta, Rancho Dinero, Fin-Alg, etc.
I think what separates Orderflows from many of the other software out there is that I don’t just sell software and that is it. I also show you how to trade with order flow. I write about my trades on my blog, orderflows.com. I have written a 150 page book on trading order flow which is included with the Orderflow software package.
Let’s face it there is not a lot written about order flow. I think part of the reason for that is not many people really understand how to trade with order flow. It is hard to be a self-taught trader in order flow because you won’t really understand the reason orders and trades flow into the market. I spent my professional career trading with order flow. I spent 20 years trading for banks and commodity trading firms. You can see my profile on Linkedin to see my full background and feel free to connect with me. While trading for the banks I learned how to get information out of the market and how to trade off that information into a profitable position; when there is an opportunity to earn a significant return relative to risk you get into a position. While trading at commodity trading firms I learned to think how commercial end-users think; you are always in a position just by being in that business whether or not you chose to hedge a position in the futures market. While trading for myself I learned to take low risk high return trades; I do not try and capture every random move in the market. What I look for is what I call “Stress Free Trades” which to me are low risk entries that have high profit potential. I have a few trades that I look for all the time that have as little as 1 tick risk.
I think another aspect that separates Orderflows from many of the other software is that Orderflows deals mainly about trading with Order Flow. I don’t try and introduce other indicators such as VWAP, moving averages, Market Profile, etc into the order flow.
Sure there are some instances where another piece of information may help you make a decision but at the same time it takes away from the reading the order flow. So instead of taking trades based on order flow you are all of a sudden thinking of where you are in relation to VWAP and you freeze when it comes to get into a trade. It works both ways when you start introducing other indicators into the mix. There will be trades you make money on, there will be trades you lose money on. But I think more importantly you are moving away from order flow itself.
If you are going to trade with Market Profile then why even bother with order flow? There are many successful traders using Market Profile to trade. I used Market Profile in the 1990’s to trade but I moved away from it as I evolved more into order flow in and of itself. There are some pretty powerful ways to use Market Profile to earn a living, don’t get me wrong. I know people who do. But as a trader I evolved from longer term outlooks into a shorter term outlooks.
You need to ask yourself what kind of trader you are. Orderflows is not for everyone. Orderflows is geared more for shorter term traders, intraday trading. I do use order flow on 30 minute and 60 minute charts to find opportunities that stick out like a sore thumb and buy calls or puts for longer term outlooks. I like to pour over charts in my spare time. You never know what golden nuggets you can find late at night, sometimes my best thinking comes late at night after the kids are asleep.
Finally, I think that one of the main things about Orderflows.com that separates it from many of the other software packages out there is that even if you don’t buy my software I will still try to help you understand how to trade with order flow.
If you want to learn more about trading with Orderflows Trader be sure to drop me a message.
Happy Trading
Mike
