Order Flow Analytics
Order Flow Analytics is one the oldest 'Order Flow' educational service providers. The owner of the company, Don 'DB' Vaello certainly seems like a nice person, but unfortunately, he has absolutely no verifiable track record of ever trading successfully. Maintains a twitter page of supposed trading performance, which includes 100% winning day trades, and thousands of dollars of trading profits. However, when confronted with these supposed profits, he quickly admits that he is simply an educational provider and has no verifiable trading results.
Furthermore, publishes a series of "real trading videos" as part of his marketing scheme which gives the impression of live trading and amazing profit potential. However, once again when confronted with verifying the validity of these trading video's, Mr. Vaello is not willing to verify performance. We must simply trust him, and trust that his magic trading indicators are statistically valid.
Thanks for reading today’s review of Order Flow Analytics
What is Order Flow Analytics? The company is a day trading educational business owned and operated by Don (DB) Vaello.
In the past 6 years, Order Flow Analytics has offered a multitude of day trading products. Some of these products include an “Intensive Boot Camp” at $2500, an “Apprentice Upgrade” for an additional $2500, and a “Bootcamp Extended Access” at $250 per month.
TradingSchools.org interviewed 5 purchasers of the educational product. The average money spent was $3,500 per student. These totals represent the aggregate sum that each student spent on courses and educational materials, as well as the $97 per month to lease the trading indicators.
Order Flow Indicators
Before I jump into the concept of Order Flow Analytics Indicators, let me first start off by saying that ‘Volume Visualization’ trading indicators are nothing new. In fact, the available data to create these sorts of technical analysis tools have been around since the early days of electronic trading aka Globex (1992). Essentially, the Bid/Ask information that is being displayed on a trading DOM is being parsed and spread-out over a graphical display. And from this graphical display, somehow we are supposed to see these magical patterns emerge.
Some trading educators will gleefully proclaim that “Huge orders are hitting the bid! And this means that perhaps a higher price move is imminent. Other trading educators will use fancy and authoritative terms like, “That Delta Divergence and Volume Cluster is where the BIG BOYS are standing their ground!” Yet others will proclaim that “Those massive 500 lot iceberg (lettuce?) orders that appeared only 60 seconds ago signify greater things to come!”
The one thing that all of these order flow indicator salesman all seem to have in common is that none of them have a verifiable track record of success. (at least none that I can find) When pressed for authentic results, they usually return an answer like,
When I developed the software, it was exclusively engineered by the world’s largest prop-trading organization.
Look, my software would of never been approved by XYZ trading platform if it were a scam.
I once had coffee with group of prop-traders in Singapore. And this lady uses a set-up named the Alligator to made consistent profits. She is happy and rich.
If you want to learn how to scalp the markets…you must use Order Flow.
Am I saying that Order Flow indicators are a complete and total scam? Am I calling DB Vaello a con-artist? No. But I am simply stating the obvious. He has no verifiable track record of ever trading successfully. And in my opinion, I have yet to find a vendor of ‘Order Flow’ trading indicators with a verifiable track record.
Supposed Performance Claims
DB Vaello of Order Flow Analytics maintains a flawless record of winning trades. At least, on his Twitter page. For the past year…DB Vaello posted the following list of day trades that he supposedly executed using his unique “Order Flow Analytics Analysis Software”.
Obviously, these sort of results appear to be ultra impressive. For the past year, not a single losing trade. Yet the Twitter page is replete with fantastic compliments and self-aggrandizement of the amazing Don ‘DB’ Vaello and his magic order flow analytics indicators.
I really enjoyed reading some of Don Vaello’s twitter comments, regarding his amazing day trading success…
- “$1600 in only 22 minutes”
- “$2260 in only 28 minutes. How was your trading today?”
- “Cha-ching another $1300”
- “Like taking candy from a baby. Another $2,000+ day”
- “$10,500 profits trading crude oil. With only a 5 tick stop!”
On and on it goes. Twitter post after twitter post, all profits and never a mention of losses. All of this can be yours with the amazing Order Flow Analytics trading indicators.
Obviously, with such amazing results, I needed to reach out to Don ‘DB’ Vaello and verify that these trades actually occurred. Unfortunately, Don ‘DB’ Vaello can show absolutely nothing to the TradingSchools.Org audience to validate the authenticity of these results. In fact, when questioned about these results, he readily admits that the posted results are only for “educational purposes” and “these are not real trades”.
In my opinion, what is most frustrating is the sneaky nature in which he markets his trading indicators. Have a look at the following video…notice the recording of a supposedly live trade in crude oil. The video gives the impression that he is casually monitoring the market, and then a trade set-up appears. He shorts the crude oil market at 6 contracts, and of course, the trade is a huge winner for over $1,000. The key takeaway with this video is the subtle sleight of hand. The narrative is that we are supposedly watching a live trade, and as the trade unfolds, the magician walks the audience through the video. All the while telling the audience “I dont know what will happen next”. But of course, he knows exactly what is going to happen next, a huge winner of $1,000+. The clever nature of the presentation gives the viewer a deep sense of hope, simplicity, ease-of-use, and lusty smell of profits.
In my opinion, the what is most impressive which the marketing videos of DB Vaello is the very smooth and calming nature of his voice. He is definitely an expert salesman. He just sounds authentic. He sounds like a trader. He say’s all the right things. It all makes you feel so confident.
But the hard and cold truth can be found by simply asking DB Vaello for any sort of proof of turning a profit, or proving the validity of these trades. He won’t. He simply responds, “this is for educational purposes only”, or “OFA is not a trading system and I have no results.”
Wrapping Things Up
I will finish this post with a little story from my past. Back in 1992, I was looking to learn how to trade. And just like you, I found a promotional advertisement in Futures magazine. A guy by the name of George Lane was willing to teach anyone to trade. He had developed a “weapons grade”, rocket mathematics trading indicator that could only be leased for a monthly fee of $250 per month. Supposedly he had been the head trainer at Bear Stearns, Goldman Sachs, and several other large trading firms. He had supposedly made millions of dollars and was now retired. But for the one-time fee of only $3,500, he would train anyone to trade. He was rich and taught this educational course because he, “simply loved to teach others to fish, to be successful at trading, to be financially independent, to make their dream comes true.” All could be conquered by learning how to use the super-amazing trading indicator called Stochastics. Yep, you are reading this correctly…stochastics.
Well, I bought into the dream, hook, line, and sinker. In those days, there was no internet. And so to learn this amazing trading indicator, I had to fly out to Illinois. In January, the freezing ass cold month of January. And so I went to spend several days with George Lane to learn these amazing trading secrets. For several days, I toiled away on a trading simulator that copied the price action in the SP500 Futures pit. Though I was mostly break even, old George Lane told me that I simply needed to keep looking at his amazing stochastics trading indicator and that the “patterns will emerge”.
Well, things didn’t work out so well. In those days, a trade cost $30. Or, $15 per side. And the trades had to be called into the pit, over an old telephone. As crazy as this sounds, I used to call a phone and place an order. After about 15 minutes, the broker would call me back and give me the fill price. At which you were either totally screwed, or totally confused about what to do next. As you can imagine, things didn’t work out so well.
Only after several years, did I invest in a program by Omega Research and backtest my Stochastics indicator. Wow was I shocked to learn that a Stochastics indicator has no more predictive value than a coin flip.
This is the underlying and fundamental problem with ‘order flow’ indicators…none of these developers can apply science that proves or disproves the theory that volume structure predicts directional price movement. It’s all interpretive. And just like stochastics, at some point, it will hit critical mass and these order flow indicators will be given away for free, or included in every major trading platform. But in the meantime, it appears to be the fashion of the day, with vendors galore selling what appears to be fancy looking Christmas lights.
Thanks for reading. I know this post is probably going to rankle a few folks. Plenty of people love these sorts of indicators, and plenty more love Don Vaello. But once again, this is just my opinion. Thanks for reading and don’t forget to leave a comment below.