Hey everyone,
I currently trade using ThinkorSwim (for options) and TopstepX (for futures).
My style is pretty simple:
- I trade index futures (mostly intraday)
- I usually take 2–3 trades per day max
- I also swing trade options in TOS
Recently, I’ve been seeing a lot about order flow (DOM, footprint, Bookmap, etc.), and it got me thinking…
Am I missing anything by not using order flow?
Since I’m not scalping and I don’t take a lot of trades, I rely mostly on:
- Chart structure
- Levels
- Price action
I’m not currently using DOM or footprint tools at all.
So I’d really like to hear from people who:
- Trade indexes (ES/MES/NQ)
- Use or don’t use order flow
– Do you think order flow actually adds an edge for someone with my style?
– Or is it more useful for scalpers / fast traders?
Trying to figure out if this is something worth learning or just unnecessary complexity for how I trade.
Appreciate any insight
Am I missing something by not using order flow? (TOS + TopstepX user)
byu/writer66 inoptions
Posted by writer66
1 Comment
Orderflow stuff can be real and has edge but it requires fast orderbook data from all exchanges at microsecond latencies that HFT uses. Other signals that last a period of hours to multiple days requires fine grained data and some machine learning on top but signal exists. Looking for patterns ain’t doing shit. Google the “vomiting camel” pattern if you like. This is all possible with work and spending a few hundred to a thousand bucks a month. Needs some STEM and coding background. Otherwise stick to fundamentals sort of trading and read earnings reports. Made up orderflow patterns using candles is jack shit. If you read Euan Sinclair’s options trading book he talks about how HFT and Hedge funds have market making, event trading, stat arb and long short desks. No one’s ever heard of the Japanese candles trading desk. None of these service providers have serious orderflow data that’s usable. Your eyeballs can’t see stuff that trades in microseconds. It’s all selling stuff to people that sounds fancy to make money.