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Originally Posted by pipmutt Ok, I'm none the wiser!
Can anyone give a practical demonstration of this OF trading in action, preferably in real time?
There seems to be lots of conjecture, speculation, and innuendo but not a lot that anyone can actually use in the practical sense to make money. |
Pip,
Speaking purely theoretically here, if we define orderflow as net market orders (buys (positive) + sells (negative)), the signed result would be the "flow" (positive or negative). So if you knew there was a strong imbalance of market orders (in volume) at a particular location, and by market orders I especially mean stop orders (SL/TP/pending long/short stop orders) as they become market orders and thus generate signed orderflow, do you not think you could use that in any practical sense to make money, whether by itself or as some piece of a strategy?
I'm not saying you can or can't, or that this is what orderflow trading necessarily is. But does that make sense?