SenZoukria.Mnq :
Order flow is an execution model. For retail traders, it's mainly useful for execution, key levels, and confirming bias. On its own, execution isn't optimal enough to consistently generate an edge, which is why I combine Hurst cycle analysis and mean reversion with execution tools like absorption.
Also, in futures, the market structure is different. You have a centralized order book, MBO data, and tighter spreads, which makes order flow much more reliable than in many other markets.
Can you make money using order flow alone? Yes, it's definitely possible, and some traders do get funded or achieve payouts using only order flow. But it's generally much harder than using it alongside another statistical or structural edge.
For scalping, order flow alone can work well because execution is the main source of edge. But for intraday or day trading, relying only on order flow often becomes overly complex. You still need to define your higher-timeframe zones and maintain a clear daily or intraday bias.
So you're about 80% right. It's very difficult for a retail trader to achieve a sustainable edge with a Sharpe ratio around 1 using only order flow. That's why I believe order flow should be combined with another framework rather than used as a standalone strategy.
2026-07-30 21:19:37