Algo Futures

How To Read & Use Weiss-Order-Weighted (WOW) Index

Order Flow - Why It Is Important To Your Trading | A Video Primer

These videos are very good starting point to better understand why and how changes in order flow affect changes in price.
It covers many of the basic precepts that are the cornerstones of our work....we think that the information provided within is both eye-opening and obvious.
We hope that you find this as interesting as we do.

Why Monitoring Order Flow Matters in the Electronic Futures Markets
S&P 500 - Nails the High of the Week	S&P 500 - January 03, 2011 - Nice Signals...Nice Entry Algorithms	Day Trading Order Flow Momentum	Insiders and Smart Money Selling Before The Inventory Announcement

Algo Futures predicates its work on the simple philosophy that:

1.   Changes in Price are always a function of changes in Supply & Demand - regardless of the market

2.   The best way to evaluate changes in Supply and Demand in the stock and futures markets is to monitor Order Flow

Algo Futures focuses on creating algorithms that monitor and interpret Order Flow for the purpose of harvesting real-time trading opportunities that either piggy-back Institutional, High-Frequency and Prop Desk trading campaigns, or enter into trades where the lack of order flow creates price vacuums - which are the underpinnings of short-term reversals.

The WOW Index is generated by our algorithms which monitor and interpret Order Flow Heat in the e-mini S&P 500, Crude Oil, Dow 30, and STOXX 50 futures contract.

For all trades - Never fight the Tape - Align your trades with those that drive the market by trading in the direction of the dominant program trades - which are visualized in real-time on the WOW Index Monitor.

If you see consistent green across the trading day, do not go short.  It will only cause you pain.  Conversely, this does not mean that if the day is all green, you can jump in at any point.  But it does give an indication that you should be looking for long entries only.

Additional Algo Futures Educational Resources | WOW Index | Wo-Mo | Moab

1. Learn more about the WOW Index and how it Explains Changes in Price here.

2. Learn about Wo-Mo [Weiss Order Momentum] how to to use the Moab annotations on this chart to your trading by understanding:

• How automated trading programs invoke other automated trading programs
• Why the analyzing the Momentum of of Order Flow offers clues to immiment changes in price
• How the disparate yet aggregated automated trading programs are the forces under the hood of price discovery