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Originally Posted by Darkstar All of those examples exploit order flow (a sequence of orders), but that does not mean they are engaged in "Order Flow Trading." |
I think a better analogy would be that Deutsche Bank is doing "DB Order Flow Trading (TM)", while you are doing "Darkstar Order Flow Trading (TM)". Both use most of the same building blocks (knowing or guessing current positions, future flows, stop locations, sentiment, liquidity gaps, ....) but arranged in a different and proprietary way.
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Order Flow Trading is a metagame analysis technique for predicting future trader behavior. It short it relies on the premise that by knowing what traders are going to do, you can construct an approximated order book and THEN exploit the sequence of orders for profits. And as far as I can tell, prior to its development, by me, in 2006, the concept did not exist.
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Strictly by this definition fading a bubble is order-flow trading - you see that everybody is buying, is getting long and then you anticipate their hasty exit. Some of the trades in "Reminiscence of a ..." also fit this description. I'll venture saying that what most people here assume is order-flow trading existed before 2006, but not under this umbrella name.
However your own realization of these concepts under the "Orderflow Trading" brand together with everything surrounding it is indeed your creation. Also the fact that you (and others) shifted FF attention from losing 100% chart based TA to more complex forms of trading.