We have subscribers worldwide and many of them don't speak English as a first language. As such, we're going to be making some plain-text posts in addition to our video posts. I hope you like it. I use a questions and answers format in this post. Enjoy!
Question:
I've seen other order flow software on the market. What makes your program different from other "order flow" programs on the market?
Answer:
First, in broad terms, we didn't actually set out to develop a trading software but after reviewing all the major programs on the market: we realized that nothing met our demands. Second, we are real traders and not just developers. Even from the earliest "alpha states" of our program, we were using it in our trading and seeing what was really working vs that which wasn't. Our motivation wasn't appealing to a customer base but rather making a software that really made a difference in our ability to trade. I think that our results-driven development process really helped. Likewise, our software is very specialized. Most of the other "big name" products on the market are not really specialized for reading the tape but rather are designed to appeal to a very large audience: this is no mistake because futures trading a very niche market.
Second, from the practical standpoint, our program incorporates advanced depth analysis or resting order analysis. None of the other order flow programs do this. They just focus on market orders. Market orders are important but they're only 1/2 the story. Doesn't it make sense that price movement is the result of the interaction between resting limit orders and market orders? A lot of patterns that our program "foreshadows" can't even be seen in other software because its only possible to see these patterns as the interaction between the resting and market orders! We also provide more advanced market order analysis which makes it easier to read the market oriented flow.
Question:
I've heard that the depth is "all spoofed" and that it can't be trusted: what do you think about that?
Answer:
As a tape reader who worked seriously at my craft for a long time, I was one of those people who believed that the "depth" didn't matter because I couldn't read it. The reality is that without our software it is virtually impossible to make sense of the depth. I never developed that ability, and always considered myself very strong at reading the tape. Today, I use the depth extensively in finding low risk and high quality trades. I can place limit orders at a precision that would otherwise be absolutely impossible without this software. Just as importantly, I can place market orders with an intelligence that would not be possible. The combination of depth analysis with our order flow analysis gives us a stereo vision into the market.
Question:
Some traders/courses I've taken claim that all that is needed to read the order flow is a time/sales display?
Answer:
If those courses appeal to you then you will absolutely want to try our software. I've taken some of those same sorts of courses. The techniques they share may have worked a long time ago before the market became algorithmically dominated. But, they don't work very well today. Our tools such as the Q-TrackerTM and PressureVolumeTM are far more advanced, powerful, and easier to read then the time/sales displays found in other charting programs. If you are set on reading from a time/sales display then you'll still want to try our program because our time/sales inspector is way more powerful and easier to read then the time/sales display found in other charting programs.
Question:
Some order flow programs claim that order flow always leads price? Is this true?
Answer:
I take a "theory agnostic" approach which means "I don't believe much of anything". In my experience, price movement is actually the result of the interaction between market and limit orders. We feel that this is why so many traders who tried "first generation" order flow software felt lost or confused because they didn't see the complete picture. The actual dynamic is complex but I can say that the ability to see the order flow in our software interacting with the limit orders gives me a tremendous advantage. There are some days and times when the market orders become very dominant, like "bold brush strokes", and at those times the market orders are the most important factor. But, most of the time the price movement is the result of that interaction between the limit and market orders.
Question:
I'm really motivated to learn this stuff. How long should I give it?
Answer:
I would give it at least 6-9 months of serious effort and training before making a decision. Of course, our trial isn't that long but our trial is only designed to show what the software can do. If you don't feel like its working after 6-9 months of training then this style of trading may not be a good fit for you. Training can make a big difference in the learning curve, and we're planning to offer both more free training and even premium training. We don't have an ETA on the premium training but I'll be posting stuff here on a regular basis.