Using Orderflow to Make $4000 in 1h — Transcript

Full transcript

1. 0:00I've made a little over $4,000 trading
2. 0:02the S&P 500 futures in a single session
3. 0:04using order flow. I will show you
4. 0:06exactly the strategy I have used with an
5. 0:08exact trading breakdown. So, the first
6. 0:10thing I do when I open my computer is
7. 0:12open my deep charts platform and have
8. 0:14the 1-minute chart on this side and the
9. 0:165-minute chart on this side. On the
10. 0:175-minute chart, I typically have these
11. 0:19big bubbles that are the big trades
12. 0:21taken through the order flow of the
13. 0:23entire futures market filtered by size
14. 0:26so we can filter out the noise and just
15. 0:28see the big trades from big banks, from
16. 0:30the smart money, the trades that
17. 0:31actually matter. And on this side
18. 0:33instead, I have a more, let's say, old
19. 0:35school type of footprint chart, your
20. 0:37very classic bid-ask footprint chart
21. 0:39where you can see the numbers, the
22. 0:40needy-greedy details, all the statistics
23. 0:42of each candle with the deep stats, and
24. 0:44the cumulative volume delta. I also keep
25. 0:46typically a volume profile on this side,
26. 0:48and this is my basic setup. You can find
27. 0:50it here on the templates of deep charts
28. 0:52full version under Achimi ES. This is
29. 0:54the 5-minute on this chart, and this is
30. 0:56the 1-minute template on this chart.
31. 0:57But, before we see the actual trades
32. 0:59that taken during this session, you
33. 1:01might want to see, "Hey, I don't want to
34. 1:02only see the charts. I want to see that
35. 1:04you actually took these trades in a real
36. 1:06account, in the real market." And that's
37. 1:09completely true. So, first I'm going to
38. 1:10show you that I have actually executed
39. 1:12these trades. Just going to log out for
40. 1:14a second from my Thinkorswim platform,
41. 1:16and I'm also going to log out from my
42. 1:18brokerage and re-login just to make sure
43. 1:20we're talking about the same thing. So,
44. 1:23let's re-login. Let's not make any cut
45. 1:25here, editors, please, and so they can
46. 1:27see it's all real and we're not faking
47. 1:29anything. And this is my real account.
48. 1:32I've I'm not a prop firm trader anymore
49. 1:34since probably at least 2 years. I
50. 1:36haven't been trading prop firms. I use
51. 1:38my money. I basically trade it kind of
52. 1:40conservatively conservatively because I
53. 1:42want to grow my money through time, and
54. 1:44I don't use trading necessarily as a
55. 1:46cash flow business. But, still, I've
56. 1:48deposited 50K in September, managed to
57. 1:51put them up at around 65, 66,000 dollars
58. 1:54in a matter of, what is it, like 2
59. 1:56months, 1 month and a half? Then
60. 1:58November was a very high drawdown phase.
61. 2:00I I probably lost, I don't know, around
62. 2:03$6,000, not much.
63. 2:05Uh and I didn't trade throughout all the
64. 2:07entire winter because I was doing
65. 2:08holidays. And then I've deposited 75K
66. 2:11and then 75K more. And on January 26th,
67. 2:14I started my trading once more. And as I
68. 2:17promised to share a little bit of, you
69. 2:18know, my journey through trading, the
70. 2:20good, the bad, and the ugly, I want to
71. 2:22transparently show you my exact track
72. 2:25record. And I'm going to do it more
73. 2:26times in inside of this channel for
74. 2:27transparency purposes. So if you
75. 2:29appreciate that, uh join the community
76. 2:31by subscribing to the channel. And so
77. 2:33starting in January 26th, for now
78. 2:35starting at $209,000,
79. 2:38we've been going up until 217. Well,
80. 2:41I've taken a screenshot just in case.
81. 2:42These are the actual trades. I've taken
82. 2:45the screenshot on the same day, uh but
83. 2:46you can see them clearly here.
84. 2:48Uh that's exactly the trades that I've
85. 2:51took. And now I can show you why I
86. 2:53executed these trades and go to the
87. 2:56actual breakdown of the trades. Let's go
88. 2:58and understand how I frame my entries.
89. 3:00I'll typically start on a 5-minute
90. 3:02chart. And what I want to see is where
91. 3:04is most likely price is going to stay
92. 3:08throughout the day, or what's the most
93. 3:09likely path for the price and for the
94. 3:12auction throughout the day. And I And to
95. 3:14do that, I use volume profiles. I use
96. 3:17two types of volume profile. The most
97. 3:18important one being for framing the
98. 3:20bias, my composite volume profile. And
99. 3:23this composite volume profile basically
100. 3:24takes the entirety of the volume of the
101. 3:27chart that I have loaded. And I
102. 3:28typically load the last 10 days. And
103. 3:31what I can see is we have a double
104. 3:33distribution. So this is a first
105. 3:35distribution, and this is a second
106. 3:36distribution. We have a low volume node
107. 3:38right over here. And that's going to be
108. 3:40a crucial point, and I'll explain you
109. 3:42why in a bit. And the second thing I'm
110. 3:45looking is how is the previous cash
111. 3:47session profile unfolding. So this dark
112. 3:51orange one is the volume profile of the
113. 3:54regular trading hour session, the
114. 3:55so-called New York session. The Asian
115. 3:58and the London session are in this
116. 3:59lighter color because there's less
117. 4:01volume into those areas. These are the
118. 4:03ETH or extended or electronic trading
119. 4:06hour session. And then again, this is
120. 4:08the session I've actually traded. We
121. 4:10have another volume profile cuz that's
122. 4:12the next New York session, as you can
123. 4:13see from volume. So, since yesterday in
124. 4:15the last session, this was the main fair
125. 4:18valuation. And we are in a fair
126. 4:21valuation area where most of the money
127. 4:24has been traded over the last sessions,
128. 4:26then this I consider this to be a very
129. 4:30strong area of comfort where price is
130. 4:32likely to be keep trading because
131. 4:35already 70% of the trading activity
132. 4:38happened within this range in the
133. 4:40previous session. So, what I want to see
134. 4:42is one of two things. We either break
135. 4:45out from this area, so aggressive buyers
136. 4:48are not considering these prices to be
137. 4:50fair anymore and instead consider higher
138. 4:54prices to be the new fair valuation of
139. 4:56the asset and not just with an impulse.
140. 4:58I don't want to just see an impulse
141. 5:00during the breakout. Basic market
142. 5:02structure is not enough. What I want to
143. 5:04see is a range being formed outside of
144. 5:08the previous day valuation because that
145. 5:10will tell me that both sides of the
146. 5:12auctions, both the aggressive seller and
147. 5:15the aggressive buyers, consider this to
148. 5:17be a fair valuation of the asset because
149. 5:19just the face of price discovery doesn't
150. 5:22mean price acceptance. This would be
151. 5:24only price discovery. This is price
152. 5:27acceptance. So, in order to qualify a
153. 5:29breakout, I wait for a range to form.
154. 5:31And I would like to see this range
155. 5:33formed either outside of this range or
156. 5:36inside of this other distribution. And
157. 5:39as we open our session right over here,
158. 5:41the first thing price did was pump up.
159. 5:44And I was genuinely waiting for a
160. 5:45breakout, right? But then as traders we
161. 5:47adapt to what the market tells us. We
162. 5:49don't need to marry an analysis. We need
163. 5:52to adapt our idea as the market gives us
164. 5:54new information, and we want to align
165. 5:56ourselves where the biggest flow of
166. 5:57money is. Already a very important piece
167. 6:00of information I can see is where did we
168. 6:02open the session? Well, we opened the
169. 6:03session exactly
170. 6:05inside of the previous value area. This
171. 6:07is already a good sign that we're
172. 6:09probably going to stay inside of this
173. 6:10range for the rest of the day because
174. 6:11there was no relevant news or price
175. 6:14discovery auction during the Asian or
176. 6:17London session, and we're about to open
177. 6:19the session exactly where most of the
178. 6:21money was traded yesterday. So, if from
179. 6:23here, again, we move outside and we
180. 6:25create fair valuation, then I'm looking
181. 6:27for longs. But for now, I have more
182. 6:29information that I'm probably going to
183. 6:30look for bouncing from this area or from
184. 6:33this area and wait for an order flow
185. 6:35pattern to unfold over here where I can
186. 6:37see buyers being absorbed. And you can
187. 6:39kind of already see it now with the big
188. 6:41trades. Let's zoom in to understand what
189. 6:42happened. So, right at the top of this
190. 6:44area, we had buyers genuinely trying to
191. 6:48push the auction up and up and up, but
192. 6:50they were absorbed by seller in all of
193. 6:53this effort. They put a lot of effort
194. 6:55into trying to get out, but sellers
195. 6:57consider these prices to be very
196. 6:59interesting to sell for them, way more
197. 7:02than aggressive buyers were, and the
198. 7:04auction has been pushed down. The first
199. 7:06trade idea happened around here when we
200. 7:08had the first fail uh breakout to the
201. 7:11downside. So, this was my first trade
202. 7:13idea. I saw this was the initial
203. 7:16balance, and we had an attempt that
204. 7:18already failed, another attempt that
205. 7:20already failed. So, I know that this is
206. 7:22already fair value. We're in a ranging
207. 7:24market. So, the first idea I had is when
208. 7:25I saw these aggressive sellers being
209. 7:28absorbed at the bottom, it's simply the
210. 7:30same thing that happened over here, but
211. 7:32from the sell side of the market. And
212. 7:34that's when I drop into the lower time
213. 7:36frames. And that's when I drop into the
214. 7:38lower time frames. And let's see what
215. 7:39exactly happened here and made me pull
216. 7:42the trigger on this exact candle over
217. 7:45here. If we zoom in, we can clearly see
218. 7:47there was a lot of effort. Look at the
219. 7:49numbers over here. 3,000 contracts,
220. 7:515,000, 8,000 contracts. A lot of sellers
221. 7:55over here and I can see those
222. 7:57thousands of contracts being absorbed
223. 7:59over here and right after a very strong
224. 8:03volume reversal. This is very crucial
225. 8:05for me. A strong low happens when we,
226. 8:09for example, break out with a lot of
227. 8:11volume, 5,000, 6,000. You see volume
228. 8:14here increasing on the way out, but then
229. 8:16also increasing all the way up back
230. 8:19inside of the range. We still kept a
231. 8:21very strong pace, 6,000, 6,000. When I
232. 8:23saw this huge volume and I started
233. 8:26seeing sellers also from the CBD being
234. 8:28absorbed, so you have a negative delta
235. 8:31with a positive price action. That's a
236. 8:33very clear divergence in market
237. 8:35pressure. There was an effort from
238. 8:36seller that is not having any follow
239. 8:39through. And the 5-minute was about to
240. 8:41close right over here and that was my
241. 8:43signal for the entry. I have a clear
242. 8:45absorbed seller. This stuff you cannot
243. 8:47see it with price action, unfortunately.
244. 8:48And then I traded all the way to the
245. 8:50other side of the range where sellers
246. 8:52are likely to get aggressive. And as you
247. 8:54can see, that's the trade being closed
248. 8:56over here. So, we opened the trade over
249. 8:57here, we closed it over here. And then I
250. 8:59simply waited for this thing to happen
251. 9:02here once more. I saw a lot of
252. 9:04aggressive buying, to be honest. I was
253. 9:05waiting for this level to be broken
254. 9:07above a very strong candle, a lot of
255. 9:10buyers and maybe trading an opening
256. 9:12range breakout type of setup. But what
257. 9:14happened again is buyers very aggressive
258. 9:16at the top of the wick completely
259. 9:18reabsorbing the price action. And then I
260. 9:21zoomed in again into the needy-greedy
261. 9:22details and I can see again exactly the
262. 9:25same thing. During the breakout, really
263. 9:28high volume. We had 3,000 contracts
264. 9:30averaging the previous candles and then
265. 9:325,000, 6,000. And then again, 3,000 and
266. 9:364,300 on the way down. And I think this
267. 9:39is where I said, "You know what? This is
268. 9:40a very good sell idea because the
269. 9:42auction is clearly telling me, without a
270. 9:45shadow of a doubt, that the party is not
271. 9:47going anywhere up on the upside. That
272. 9:49the money is not ready to go up. They
273. 9:51told me this with numbers in a very
274. 9:54objective way." We had a very strong
275. 9:56rejection with a lot of volume. The buy
276. 9:58candle had little to no volume, 3,000
277. 10:00contracts, that's negligible stuff. And
278. 10:02instead, as we broke back inside, the
279. 10:05activity started rising. Buyers and
280. 10:07sellers start auctioning very
281. 10:08aggressively again on both sides of the
282. 10:10auction, but with a clear selling
283. 10:12dominance. 4,000 contracts, 4,000
284. 10:14contracts again. So, the party is going
285. 10:18inside of the range once more. The fair
286. 10:20valuation is still this one. We're not
287. 10:22ready to break out. This is a clear
288. 10:24failed auction. And that was exactly the
289. 10:26second trade. I've probably opened it
290. 10:28already here as I saw the candle
291. 10:31reabsorbing. Stop was likely somewhere
292. 10:33above here, and we took profits around
293. 10:35the beginning of this candle. So,
294. 10:37probably somewhere around here. And
295. 10:38that's already another one to four risk
296. 10:40to reward. Why did I take profit so
297. 10:42early? Well, because the beginning of a
298. 10:44strong impulse happened here, and that's
299. 10:46typically a very strong area for a buyer
300. 10:49response. We had big buyers on this
301. 10:51candle with the candle closing within
302. 10:53the big trade, a lot of low volume
303. 10:55areas, which is, you know, pure
304. 10:57momentum, pure buying pressure. So,
305. 10:59that's where I want to be out, where I
306. 11:01have a risk that buyers will take
307. 11:03control again. And as you can see, they
308. 11:05kind of did, right? They've consolidated
309. 11:07into this area for some time, and then
310. 11:10we finally had the breakout that I was
311. 11:12waiting for. Look at this breakout. We
312. 11:13broke the opening range with a strong
313. 11:15sell candle, big trades inside of the
314. 11:18candle, which is a very crucial point of
315. 11:20information for me. Another sell candle,
316. 11:22and look at this. What happens to the
317. 11:24volume when we break out? Do we have a
318. 11:25dry up in volume immediately? No. We
319. 11:27have a lot of volume in this. The party
320. 11:29is going down, okay? So, what I wanted
321. 11:32to see now was from this area, from the
322. 11:35sell zone, value being created inside of
323. 11:39the big range. This is exactly what
324. 11:40happened. We had a very strong momentum
325. 11:43down, a lot of volume here, small failed
326. 11:46auction above here, absorbed buyers on
327. 11:48top right over here. I can already see
328. 11:49it from the candles, but if you see it
329. 11:51right here, there was a very weird
330. 11:53exhaustion movement from buyers where
331. 11:54they tried to buy up, but they got
332. 11:56completely rejected. So, how I frame
333. 11:58these type of entries is I take my
334. 12:00volume profile from the top to the last
335. 12:02of the range, and whenever I see on this
336. 12:04short-term bearish value area, I want to
337. 12:06see a breakout of this level. And when I
338. 12:08saw it, I think it was right over here.
339. 12:10Yes, that's exactly when I saw this
340. 12:11breakout on the test, I think I've
341. 12:13executed my sell trade, and I've exited
342. 12:15and took took my target after this big
343. 12:18bearish leg of price. So, basically took
344. 12:22this movement, very short-term. I could
345. 12:24have honestly taken another short trade
346. 12:26over here, and it would have been a
347. 12:27pretty successful trade, but I was
348. 12:29pretty much done for the day. Three
349. 12:31trades, perfectly executed, no need to
350. 12:33force the hand anymore. I just got the
351. 12:35out of the market, but ultimately,
352. 12:37we reached the final target, which was
353. 12:39the other side of the previous day value
354. 12:41area. So, to summarize, we had a range,
355. 12:43the first idea was aggressive sellers
356. 12:45absorbed, buyers taking control, let's
357. 12:47head to the other side of our range
358. 12:49because that's where most money's being
359. 12:51traded. Secondly, buyers being absorbed
360. 12:53at the top, same thing, let's sell until
361. 12:55the other side of the range, more or
362. 12:56less, and then let's wait for a strong
363. 12:58breakout where a clear auction is
364. 13:00unfolding, and wait for a breakout of
365. 13:02this area to go to the other side of our
366. 13:04main value area, which would be our
367. 13:06value area low. So, two setups were
368. 13:08reversal trades, one setup was a
369. 13:10continuation trade, but always following
370. 13:12the money, always following order flow,
371. 13:15and reading the auction in real time
372. 13:17without any preconception, without any
373. 13:18bias, just objectively looking at where
374. 13:21the party's going, and where the money
375. 13:24is telling me it's going. I just simply
376. 13:26join the party. They show me the
377. 13:28invitation. So, don't need to force
378. 13:29trades. I don't need to guess. Whenever
379. 13:31they show me the invitation, I join or I
380. 13:34choose to not join. I hope this video
381. 13:35give you some value. Let me know in the
382. 13:36comments if you want to see more of this
383. 13:38trade breakdown videos. I'll keep you
384. 13:40posted on how my real account is going.
385. 13:42So, subscribe to the channel and I'll
386. 13:43see you in the next one. Ciao.