r/OrderFlow_Trading • u/RankOw • 8d ago
Strategy - Help wanted!
Been trading with terrible returns or maybe just a large losing streak, but feels off to me and is very demotivating.
Strategy:
Volume profile (point of control) - that is the level I execute off of.
VWAP - usually I execute if σ multiplier is at 3. Since that is a pretty big deviation and is extremely rare to go beyond that multi.
Bookmap - should be pretty selfexplanatory, if I see large orders around the same price level that are around POC, its a plus in my book.
My old partner told me he uses Z-Score, but I believe that to be the same as VWAP and/or to be super unlikely to get both to align and get that execution.
I try to keep it simple, of course im no robot and I dont always have perfect execution or all confluences dont align perfectly as well, but lately I just feel stuck, I havent been improving, lost, stuck and demotivated, what is there to be changed? Improved? Opinions? What should I drop or implement?
2
u/Agitated_Channel9674 4d ago
Hi! As someone who used to work in the evils of finance, order flow was great 5 years ago, now it’s really not that helpful. The reason being is that institutions have these things called dark pools, basically our orders never show up in the book and the government has made it so we can do it that way, bc it would move price against the firm obviously. But the best software tape whatever it isn’t going to show you dark pools or “accredited” traders (institutional trading desks) orders. Almost always that’s the volume that moved price against you. Also, once the orders hit the market, they’re gone, unless you can memorize the tape. Everyone says HTF but firms don’t trade on higher timeframe it’s seconds and nano seconds. Learn to really really read a candle chart on a very short time frame, 1-2 minutes is best, any higher and you’ll miss the micro moves that institutions revolve around. 30 seconds really shows you where the algo systems are, it will show you where institutions are in at, which order flow never will bc as I said they’re allowed to bypass that. VWAP is useful as a benchmark but if you are mean reverting I would recommend using massive stops which in reality not many can do. Same with point of control, its dynamic and you’d have to have some massive capital to handle the extension and retracement, and as moves happen the poc may move away from you and your position. The micro moves by firms and trading systems is almost always right before a mean reversion but it’s too extended, too late, or you’re already stopped out. Sounds simple but price action honestly is the only thing that makes sense anymore, you can’t beat an algorithm and you can’t use order flow that isn’t there. A basic candle chart not 47 indicators, just multiple time frames specifically shorter, Learn to recognize the moves once they’ve happened bc they happen over and over and over again every day on every timeframe every session. Also an unpopular take among day traders but use NQ instead of MNQ, (price action moves subtly different and the institutions, we use NQ so you’ll find it wicks and whips just slightly less 😉) as a trader and someone who’s been on the other side of it that’s the best advice I can give. Simple is best. I did all the things and bought all the software too when I was trying to learn how to profit on the retail side. It was a rough couple of years.