FlowAlgo is an innovative data algorithm that can be used to help track down smart money transactions in the stock and equity options markets. The software actively monitors the tape (time and sales) across financial markets. You can use FlowAlgo to track smart money in real time and send you alerts you when there are notable orders taking place on the stock and equity options markets. In this FlowAlgo Review, we will take a look at what it can do in more detail with a view to helping you decide if this could be a useful trading tool for you to include withing your trader’s toolbox. Now without further ado, let’s get right to it!
What is FlowAlgo?
FlowAlgo gives the average retail trader real-time institutional level option order flow. It has a complex data algorithm that tracks down smart money transactions to give you alerts when there are significant orders occurring on the stock and equity options markets. This trading tool can be useful to remove the noise from the markets so that users can focus on what matters the most to them. It actively monitors the tape (time and sales) market wide and gives you clear insights that can be used right away.
FlowAlgo can identify Smart Money transactions by analysing various data points on each order as they hit the tape including the order type, order size, the speed of the order, the pattern in which the order fills, the order volume, average volume, among many more.
Smart money refers to investments or transactions made by ‘expert’ investors who are said to have a comprehensive understanding of financial markets – some believe that they can identify or foresee trends before others. However, many people believe this is a myth and that wealth managers – people who manage and advise on clients’ portfolios – perform no better than the overall stock market’s average trend over any given period.
FlowAlgo can be used to track down only what’s truly valuable to you when it comes to making customised and informed trading decisions. You can leave out everything you don’t want or need and make sure that every order that FlowAlgo alerts you to has a high potential of being a valid signal according to your own trading strategy.
One of the main advantages of the FlowAlgo trading tool is that you don’t need to spend countless hours looking for relevant data and maintaining complicated spreadsheets for your market analysis. It can alert you to real-time order data as and when you need it.
The data that you need will be displayed in your dashboard as it becomes available. It can be accessed through any web browser or computer. You can also filter through intraday and historical data by multiple tickers and date ranges. There is real time and historical data available. When it comes to options order flow and stock market research, FlowAlgo is one of the most powerful yet simplistic trading tools available for retail traders and investors alike.
What is option order flow?
In order to understand FlowAlgo, it is important to understand what option order flow is. Option order flow is effectively the time and sales for options, similar to the time and sales tape you see for stocks. Of course, watching flow for all the tickers in the market would mean there is an obscene amount of data, so many services exist that help filter and analyse it for you, such as FlowAlgo.
Order Flow can be used as a trading strategy on its own, without charts to enter and exit the market but you also have to be able to recognize different market conditions and I would personally make sure that I conduct my own additional market analysis before taking any position. There is nothing magical about option order flow but it can help to give you an insight into possible market movement.
What does FlowAlgo track?
FlowAlgo is primarily focused on stocks and options trading, amongst its many powerful features, it can track the following:
Intermarket Sweep Orders
The order type for stealth and execution speed. An intermarket sweep order is generally a large quantity limit order that is sent to multiple exchanges simultaneously. It’s an order that sweeps across the market place, picking up as many shares as possible at the best prices available using an algorithm. It’s a sort of digital exception to the ‘order protection rule’ that says orders have to be filled at the lowest possible price. FlowAlgo tracks the multi-exchange footsteps of Intermarket Sweep orders and consolidates the data for you.
Option Block Trades
Privately negotiated option block trades that are usually substantial in size. A Block Trade is a privately negotiated futures, options or combination transaction that is permitted to be executed apart from the public auction market. Participation in block trades is restricted to Eligible Contract Participants as that term is defined in the Commodity Exchange Act. FlowAlgo is always scanning across the markets and can alert you of block trades as and when they happen.
Equity Blocks & Darkpool Prints
Large equity block trades across lit (public) and dark (private) exchanges. Block trades are privately negotiated futures, options or combination transactions that meet certain quantity thresholds and are permitted to be executed apart from the public auction market. In the context for block trades, private negotiation includes trades consummated directly between the counterparties or via a broker. However, a block trade would not be considered to be privately negotiated if it was transacted on a system or facility that functioned like a trading venue or central limit order book. A dark pool is a financial exchange or hub that is privately organized where trading of financial securities is held. Dark pools are in stark contrast to public financial exchange markets, where there is a high degree of regulation and media attention. FlowAlgo can alert you when it spots large blocks in the lit or dark markets. Due to the nature of dark pools, it is not possible to report transactions in real-time, instead it can take a few hour or days to appear.
Now that we have covered what FlowAlgo can do for investors and traders, lets summarise some of the key features:
- Realtime Option Order Flow
- Equity Block & Dark Pool Order Data
- Alpha Ai Signals
- Dark Pool Insights
- On-Demand Historical Data
- FlowAlgo Levels (Institutional Zones)
- FlowAlgo Snapshot / Day Recaps
- Voice Alerts
- Unusual Option Flow Smart Highlighting
- Flow Smart Filtering
- Trader Chatroom
- Top Open Interest Changes
How much does FlowAlgo cost?
The price varies depending on the package that you opt for. Plans start at $99 per month when paid annually whilst you can get a 2-week trial for a discounted rate of $37. There are no long-term commitments required and you can cancel or upgrade/downgrade your subscription at any time.
FlowAlgo tracks down only what’s truly valuable to you, leaving out everything that you don’t want or need to distract you away from what is important. Every order that FlowAlgo reports to you can be customised into an easy to interpret trading signal for your rapid reaction. This is a leading and powerful tool when it comes to identifying Option Flow, Unusual Option Activity and Darkpool Flows. It can save you many hours of scouring around various resources for real-time data and saving it. Instead, all of the required data is collated in one place for your convenience.
One of the things I like about FlowAlgo compared to some other similar services such as Market Chameleon, is the user-friendly interface and simplicity. It does not look as complex to utilise as some of the other option flow and stock scanner tools that I have previously reviewed. Thus, I would say it can be suitable for traders of all experience. However, that doesn’t mean that you should blindly take every signal. Make sure you do your own additional market analysis to further filter trade opportunities and never risk more than you can afford to lose.
- Realtime Option Order Flow
- Equity Block & Dark Pool Order Data
- Customised signal alerts
- Web and desktop platform
- User-friendly trading tool
- Institutional data for retail traders
- Reasonably priced
- Filter out market noise
- Actionable insights
- Smart Money Tracker
- Not the cheapest option
- Limited options order flow scanning features
- Too much Information sometimes
- Takes some time to learn
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.