Order Flow Analytics

[dandxg 10]

I was wondering if anyone had any feedback on this software. I posted here because it appears related to MP and MD and this forum gets a lot of views.

http://www.orderflowanalytics.com/Home.aspx

 

http://www.youtube.com/profile?user=OrderFlowAnalytics#g/u

 

It kind of reminds me of Market Delta, but seems a bit different. I had a hard time processing MD when I looked at, at least the footprint. Just too much going on.

 

Just curious if there is any feedback on OFA?

 

Good trading to all,

 

Dan

[FulcrumTrader 10]

I have looked at this software in the past and in the 1st and 2nd YouTube videos they make assumptions about market dynamics that are not the reality. This companies software can be useful for a trader to continue to understand the order flow process which is always a good thing....but some of there explained set ups have nothing to do with "retail" traders stuck holding inventory that is about to go 2 points underwater (hitting stops). What they did show in the second video of three was actually a level that had an "inventory grab" event. A large group of resting LONG inventory had been neutralized (shows as HEAVY sell side action as that LONG inventory went to neutral in a small several tick range) which many times will cause a pause in the market. As sellers that had sold inventory from HIGHER pricing levels have price trade down to lower zones of resting LONG inventory, they use this resting LONG inventory as the EXIT for the held sellers inventory from higher pricing levels. Sellers DRIVE price lower to the point where they can COVER OUT into the capitulating resting LONG inventory with minimal slippage. The market is constantly trading back and forth between zones of held resting INVENTORY....once I learned this, everything then made sense to me in the "Supply & Demand" driven markets.

 

I myself watch this exact same information, but I use Cumulative Delta bars specifically so I can INDEX the Delta Thresholds or Zones of resting inventory. I ALWAYS want to know WHERE are participants holding resting inventory and WHAT will they do as price trades back to these levels of resting inventory (what I call REAL support and resistance levels BACKED by some actual significant inventory). I also use the Cumulative Delta bars to track who is in control of the order flow at all times and when "order flow transitions" take place....learning how to track the "Supply & Demand" driven markets imo IS the ultimate edge.

[FulcrumTrader 10]

As a reference, we had a key "Inventory Grab" event on Thursday during the sell off....then on Friday pre-market we had some newly initiated LONG inventory accumulation. Here is a chart of Thursday and Friday showing this "supply & demand" activity.......

 

Images | ChartHub.com

[Karish 10]

Thx FulcrumTrader

 

Can you explain what do you mean by cumulative delta bar

[BlowFish 10]

'Delta' is a term that has been coined to describe the difference between volume traded at bid and volume traded at ask. You can learn more about it at marketdelta.com. Investor RT (the charting package) has some stuff on it too. Cumulative delta just means that you are not resetting the delta (you are accumulating the net value). Some people reset it each bar (and look for divergences) some reset each session and use it as a proxy for order flow on the day. Yet others (like fulcrum) run it from the start of the contract using it almost like a proxy for open interest.

[pfx111 10]

'Delta' is a term that has been coined to describe the difference between volume traded at bid and volume traded at ask. You can learn more about it at marketdelta.com. Investor RT (the charting package) has some stuff on it too. Cumulative delta just means that you are not resetting the delta (you are accumulating the net value). Some people reset it each bar (and look for divergences) some reset each session and use it as a proxy for order flow on the day. Yet others (like fulcrum) run it from the start of the contract using it almost like a proxy for open interest.

 

Any delta indicators today are lier....

[Tams 20]

"Lies, damned lies, and statistics"

Benjamin Disraeli

 

"There are three kinds of lies: lies, damned lies, and statistics."

Mark Twain

[Karish 10]

thx for clarifying blowfish, I though that commutative bar is referring how a new bar is contracted.

[BlowFish 10]

"Lies, damned lies, and statistics"

Benjamin Disraeli

 

"There are three kinds of lies: lies, damned lies, and statistics."

Mark Twain

 

A couple of my favourite quotes (though always forget who to attribute them to). I guess you know 83.4% of all statistics are made up on the spot

[FulcrumTrader 10]

Any delta indicators today are lier....

 

Cumulative Delta did not at all lie to me today (or any other day)..........

 

Images | ChartHub.com

[paolfili 10]

In Intraday prospective (the only I can manage ...) some divergences seem not respected.

 

Cumulative Delta did not at all lie to me today (or any other day)..........

 

Images | ChartHub.com

[FulcrumTrader 10]

In Intraday prospective (the only I can manage ...) some divergences seem not respected.

 

Divergences are not the key aspect to track for using a method to track the "Supply & Demand" in the market.....the zones of actual resting inventory are the key component to learn and then track (then you will know where and when to use Divergence set ups....regular divergence, hidden divergence, or "inventory grab" set ups).

[FulcrumTrader 10]

 

Who would give away a working ES strategy for peanuts if he has the key to print money nearly as the FED does?

 

I show how to track zones of resting inventory and what trade set ups are the most optimal as price trades between the zones of resting inventory.....it is still up to the individual trader to create their own success. I am not giving away anything that will ever take away from my opportunities in the market each day.....too many futures instruments and too much liquidity available.

 

The charts I put up show how important it can be to track zones of resting inventory and also how to track accumulation in the market during key events....not giving anything away that is not already tracked by much bigger groups in the market.

[paolfili 10]

FulcrumTrader, I' m following your posts from months.

With UrmaBlume' s posts I think you express some of the more interesting ideas of the last months in TL forum.

Anyway in yesterday (as in some other days) market dynamics from a CumulativeDelta only prospective there are a lot of question mark.(from MY point of view).

 

Let' s try to open a little the timeframe view for the ES.

 

You talk about a grab inventory event in the UE morning.

Probably I' m on a wrong assumption, but I' think in UE session begin the FESX leads the Market till the 13.00/13.30 CET when (usually) ES take again (in term of $/timeframe)

the leadership.

I think that +5k in the ES night session (institutional market) cannot balance the FESX Cumulative Delta persistence in the morning.

.. probably I need to use renko 0.75 bar visualization and buy your delta course ....

 

 

 

 

Divergences are not the key aspect to track for using a method to track the "Supply & Demand" in the market.....the zones of actual resting inventory are the key component to learn and then track (then you will know where and when to use Divergence set ups....regular divergence, hidden divergence, or "inventory grab" set ups).

[ZOSO 10]

I show how to track zones of resting inventory and what trade set ups are the most optimal as price trades between the zones of resting inventory.....it is still up to the individual trader to create their own success. I am not giving away anything that will ever take away from my opportunities in the market each day.....too many futures instruments and too much liquidity available.

 

The charts I put up show how important it can be to track zones of resting inventory and also how to track accumulation in the market during key events....not giving anything away that is not already tracked by much bigger groups in the market.

Another legendary paper trading vendor.

[FulcrumTrader 10]

Another legendary paper trading vendor.

 

Another legendary poster who adds nothing to the thread discussion as usual.....BTW, there are MANY who know me personally in the trading community that will refute your false assumptions.

[ZOSO 10]

.BTW, there are MANY who know me personally in the trading community that will refute your false assumptions.

I suppose your videos are also false assumptions.

 

10 contracts in SIM.

 

Carry on Mr. Vendor.

[FulcrumTrader 10]

I suppose your videos are also false assumptions.

 

10 contracts in SIM.

 

Carry on Mr. Vendor.

 

No false assumptions at all....they show various set ups perfectly and FULLY WITHIN all NFA/CFTC current guidlines.

[ZOSO 10]

No false assumptions at all....they show various set ups perfectly and FULLY WITHIN all NFA/CFTC current guidlines.

I love when a vendor tries to explain why they never show real trades.

 

There is absolutely NOTHING in the CFTC/NFA regs that prevents anyone from showing live trades in a real, not sim, account. But, of course, you know that.

 

Good luck with your sim trading.

 

P.S. I think you should step up your sim size to 100 contracts. Be a heavy hitter. :haha:

[paolfili 10]

FulcrumTrader can you add some words to my questions?

 

i)Can you confirm FESX leads UE morning Market?

ii)An "inventory grab" event is more important than a persistent divergence of a different sign?

 

Thanks

 

P.S.Please ZOSO let the Vendor and the Buyer continue the conversation.

 

 

FulcrumTrader, I' m following your posts from months.

With UrmaBlume' s posts I think you express some of the more interesting ideas of the last months in TL forum.

Anyway in yesterday (as in some other days) market dynamics from a CumulativeDelta only prospective there are a lot of question mark.(from MY point of view).

 

Let' s try to open a little the timeframe view for the ES.

 

You talk about a grab inventory event in the UE morning.

Probably I' m on a wrong assumption, but I' think in UE session begin the FESX leads the Market till the 13.00/13.30 CET when (usually) ES take again (in term of $/timeframe)

the leadership.

I think that +5k in the ES night session (institutional market) cannot balance the FESX Cumulative Delta persistence in the morning.

.. probably I need to use renko 0.75 bar visualization and buy your delta course ....

[FulcrumTrader 10]

FulcrumTrader can you add some words to my questions?

 

i)Can you confirm FESX leads UE morning Market?

ii)An "inventory grab" event is more important than a persistent divergence of a different sign?

 

Thanks

 

P.S.Please ZOSO let the Vendor and the Buyer continue the conversation.

 

When the EU markets are trading live the DAX will frequently have the most impact on the ES movements during that period (in the after hours session for the ES market). Once the US pre-market "news release" time periods trade then at times you can see ES price movements lead other instruments according to the news reaction. There are also times when you will see the ES trade directionally while the Asian markets are trading flat (but the EU markets are not yet trading).....this will happen when some commercials are driving price to levels where they are willing to add more inventory to positions they have already started building previously. There are multiple ES behaviors/patterns in the after hours session possible according to the recent context of price/volume action.

 

Inventory Grab events can be greater or less prominant than an intraday or multi-day Delta Divergence....it usually comes down to the amount of inventory neutralized and how that held inventory zone was developed prior to getting fully neutralized. Before a trade day even starts, I already know what zones of resting inventory if neutralized will be very significant inventory grab events to trade from.

 

As far as compliance issues go, there are definitely guidlines that need to be followed when trading funds for others or for those who are a CTA (and who also provide trading education to included live trading of funds demonstrations for clients). Just last week I was talking with NFA reps in Las Vegas at the Online Trade Expo...I always like to know what their current "hot" issues are for compliance.

[ZOSO 10]

Are you a CTA? If so, what is your NFA number?

[FulcrumTrader 10]

Are you a CTA? If so, what is your NFA number?

 

I do not currently utilize the CTA (setting that up for myself at this time though) but I do and have traded funds other than my own over the years. I am currently going through the set up process to trade funds in a manged futures arrangement as a CTA with a new fully automated system (based on Cumulative Delta).

[shrike 10]

Hi

 

sad telling this but

night and day European markets are driven by USA futures ,and when open ,by the USA markets .

 

try it with matlab this Kolmogorov-Smirnov Test

[sevensa 10]

Hi

 

sad telling this but

night and day European markets are driven by USA futures ,and when open ,by the USA markets .

 

try it with matlab this Kolmogorov-Smirnov Test

 

Why are you sad about it?