Trading On OrderFlow Levels

This post is in response to the queries I’ve received over the OrderFlow spreadsheet. As you know a copy of the spreadsheet is uploaded at the close of the sessions on NSE and MCX.

You Can find the spreadsheet at this link

The OrderFlow system of Trading is an automated buy/ sell trigger system with pre-determined exits.

The system generates two kinds of messages :

1) An automated Buy/ sell alert based on volume activity between buyers and sellers. A Buy signal will thus be generated when there are more buying volumes and a sell signal for more selling volumes.

2) The Other alert is the Info Alert based on Prime Levels. The Prime Levels are areas of supply and demand based on previously traded volumes and are apt places to keep stops or book part profits.A copy of the Prime Levels is updated every day before the open at this link

For all the new signals generated a Stop Loss is the previous Prime level and the first target is the next prime level above(below) the Buy(sell) signal. This is explained in detail in this post

In the spreadsheet you would find Stop Losses at a the previous prime level or an info level such as 2Ib or 3Ib which comes in the info messages.

The Targets are also from the info messages and would be prime levels or other levels such as 2Ib or 3Ib etc.

All Information is taken from!/V2OF

We always advise to trade in multiple lots. One can use the Nifty Minis instead of the larger Nifty or choose Gold Minis or silver Minis instead of the larger lot sizes One can also buy ITM option calls or puts in the direction of the OrderFlow calls if trading on the Nifty.

As the system is based on background volume activity, it will move immediately as soon a s a buy or a sell signal is generated as volumes increase on the side of the new signal. Consequently in a majority of the cases, the stop loss in the form of the Prime pivot below(above) the signal will be hit in the first ten minutes of trade if the signal is a fake one or the opposite party subdues with bigger volumes.In most cases, if the call remains alive over ten minutes it should go to the nearest prime level at least.

The best way to trade the system is to be very mechanical in the approach. Accept the stop losses if they occur as they are part and parcel of any trading system. I have not know a single successful trader who has made his way to profits without his share of stop losses.

Also accept periods of whipsaws which will be 2-3 stop losses in a row. The Brighter side of looking at whip saws is that the losses are small. Also the break out signal away from the whipsaw is a big winner guaranteed to wipe away losses from the earlier fake signals.

The system is conservative in it’s working and will not catch the very top or bottom, but over time it is one of the better methods of generating consistent profits for your account.