VWAP-Based Order Flow (VOF) Trading Framework

A practical execution guide for trading VWAP deviation mean reversion and continuation in ES futures

📖 Abbreviations

Abbreviation	Meaning
AVWAP	Anchored VWAP
CVD	Cumulative Volume Delta
ET	Eastern Time
ETH VP	Extended Trading Hours (18:00-09:30 ET) - Volume Profile
ETH VP-VA	Extended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area
ETH VP-VAH	Extended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area High
ETH VP-VAL	Extended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area Low
ETH	Extended Trading Hours (18:00-09:30 ET)
GEX	Gamma Exposure
HSI	Horizontal Stacked Imbalances
OFA	Order Flow Analysis
OP	Opening Price
PD Range	Previous Day Range
PD	Previous Day
PDH	Prior Day High
PDL	Prior Day Low
PVD	Periodic Volume Delta
RTH VP	Regular Trading Hours (09:30-16:15 ET) - Volume Profile
RTH VP-VA	Regular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area
RTH VP-VAH	Regular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area High
RTH VP-VAL	Regular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area Low
RTH	Regular Trading Hours (09:30-16:15 ET)
VA	Value Area
VAB	AlgoStorm™ Value Area Breakout Framework
VAH	Value Area High
VAL	Value Area Low
VD	Volume Delta
VDB	AlgoStorm™ Volume Delta Bars (similar to Periodic Volume Delta)
VDT	AlgoStorm™ Volume Delta Thrust
VOF	AlgoStorm™ VWAP-Based Order Flow Framework
VP	Volume Profile
VPA	Volume Price Analysis
VSI	Vertical Stacked Imbalances
VWAP	Volume Weighted Average Price

📘 What is VOF?

The VWAP-Based Order Flow (VOF) framework is a systematic approach to trading ES futures by identifying when price reaches statistically extended VWAP deviations (±2σ, ±3σ) and exhibits order flow confirmation for mean reversion or continuation.

Core Principle

VWAP represents session fair value. Price at ±2σ or ±3σ deviations is statistically overextended, creating high-probability mean reversion setups when combined with volume profile confirmation, strong volume delta, and order flow exhaustion signals.

Starting Points

VWAP (fair value - for continuation or breakout setups)
VWAP ±2σ (extended deviations - primary mean reversion zones)
VWAP ±3σ (extreme deviations - highest probability mean reversion)

Who This Is For

Traders who prefer statistical/probability-based reference levels
Those who want to trade mean reversion at extremes
Systematic traders who follow checklists
Traders comfortable with VWAP as primary reference

Prerequisites

Read the Essential Theory for VAB & VOF document
Understand VWAP theory and standard deviations
Understand Volume Profile structures
Understand CVD patterns
Understand Opening Cases
Understand Gamma Exposure (GEX) concepts

Framework Overview

Category	Detail
Analysis Starting Point	VWAP & VWAP Standard Deviations
Core Strategy	VPA + Relatively High VD + 2-min Candle Close Beyond 30-min VP's VA
Confluences	CVD, VDT, HSI / VSI, Volume Bubbles (Big Trades), GEX
Trading Hours	09:40 – 12:00 ET (NY Morning Session)
Timeframes	15-min (Context), 2-min (Execution)
Default Target	1:2 – 1:2.5, no partials
Breakeven Target	After 12:00 ET (end of trading zone) and 1:1.5 R:R achieved
Risk Per Trade	0.25%
Max Daily Loss	−0.5%
Max Trades Per Day	1–2 (one trade if opening price Case 4 occurs; two trades per day at most otherwise)

⚙️ Indicator Settings

VWAP (Volume Weighted Average Price)

Property	Value
Type	Session
Session Reset	18:00 ET (prior day close)
Standard Deviations	Enable 2nd and 3rd bands
Display	VWAP, ±1σ, ±2σ, ±3σ
Timezone	America/New_York

Critical: Verify your platform resets VWAP at 18:00 ET for ES futures.

Periodic Volume Profile (PVP)

Volume Profile	Volume Type	Period	Value Area %	Ticks Per Row
30-Minute VP	Delta	30-min	40%	1
RTH VP	Delta	09:30-16:15 ET	70%	1

Anchored VWAP (AVWAP)

Type: Session (resets at 18:00 ET)
Anchors: Custom (from major pivots - see Daily Preparation)
Standard Deviations: Enable 2nd and 3rd bands (±2σ, ±3σ)

Volume Delta (VD) / AlgoStorm™ Volume Delta Candles (VDC)

Calculation Timeframe: 1 second
Display: Read relatively (no fixed threshold)

Periodic Volume Delta (PVD) / AlgoStorm™ Volume Delta Bars (VDB)

Lower Timeframe: 1 second
Indicator Timeframe: 10 minutes
Display: Benchmark for relative VD strength

AlgoStorm™ Volume Delta Thrust (VDT)

Lower Timeframe: 1 second
Speed: Balanced
Smoothing: Smooth

Cumulative Volume Delta (CVD) / AlgoStorm™ CVD

Anchor Period: 1 day (or RTH session)
Timeframe: 1 second

Volume Footprint Chart

Imbalance Threshold: 400%

Gamma Exposure (GEX)

Source: SqueezeMetrics or equivalent data provider
Review Frequency: Daily, before market open
Purpose: Macro volatility context and framework bias

✅ Daily Preparation Workflow

Pre-Market (After 09:30 ET and Before 09:40 ET)

1. Check Calendar & Blackout Periods

Economic calendar for major releases during 09:40-12:00 ET window
Not a blackout day (FOMC, Jackson Hole, Holy Week, late Dec/early Jan, bank holidays)

2. Check Gamma Exposure (GEX)

Review daily GEX reading (High Positive, Neutral, or Negative)
Note Zero Gamma Level (if available)
Identify major Gamma Walls near current price
Set framework bias:
- High Positive GEX → VOF is IDEAL (mean reversion expected, choppiness, VWAP magnetic)
- Negative GEX → Expect breakouts through ±2σ (trending behavior, less mean reversion)
- Neutral GEX → Standard conditions, both mean reversion and continuation viable
Adjust target expectations:
- High GEX → Favor 1:1.5 to 1:2 targets (quick snaps back to VWAP)
- Negative GEX → Favor 1:2 to 1:2.5 targets (but watch for breakouts through ±2σ)
- Neutral GEX → Standard 1:2 to 1:2.5 targets

3. Review Higher Timeframe Context

Open 15-minute chart
Identify daily/weekly trend
Note weekly high/low, monthly high/low if relevant

4. Mark Previous Day References

PD-Range: Mark PDH (prior day high) and PDL (prior day low) from RTH session only
RTH VP-VA: Mark RTH VP-VAH and RTH VP-VAL (70% VA from prior RTH session, 09:30-16:15 ET)
PD-POC: Mark prior day Point of Control
Note: These are used for Opening Case classification, not primary entry triggers

5. Verify VWAP Display

VWAP line visible and resetting correctly at 18:00 ET
All standard deviation bands visible: ±1σ, ±2σ, ±3σ
VWAP updating in real-time as volume comes in
Check timezone settings (America/New_York)

6. Draw Anchored VWAPs Draw AVWAP from:

Overnight high (highest price during 18:00 ET - 09:30 ET)
Overnight low (lowest price during 18:00 ET - 09:30 ET)
Prior day high (PDH)
Prior day low (PDL)
Prior week high (if within 2-3 days)
Prior week low (if within 2-3 days)
Any major swing highs/lows from prior sessions

7. Draw Anchored Volume Profiles (AVP) Anchor AVP from same pivots as AVWAPs to identify:

High Volume Nodes (HVNs) - potential resistance for shorts, support for longs
Low Volume Nodes (LVNs) - potential rejection areas or gaps
Note significant nodes within 10-20 points of current price

8. Mark Key Levels

Round numbers (ES: 4500, 4550, 4600, etc.)
Visible HSI (Horizontal Stacked Imbalances) on footprint chart
Visible VSI (Vertical Stacked Imbalances) on footprint chart
Prior day high/low (PDH/PDL)

9. Workspace Verification

All indicators loading correctly
2-minute execution chart open
30-minute VP visible
CVD displaying with correct anchor
VWAP and all standard deviation bands clearly visible
Bracket order functionality tested

📊 Opening Case Classification

At 09:30 ET: Classify the Opening Case

Opening Price (OP) is the first RTH price at 09:30 ET.

Case	Condition	Action	Max Trades
1	OP inside PD-Range and inside RTH VP-VA	Skip unless the previous day was a skip day for the same reason	x0
2	OP inside PD-Range but outside RTH VP-VA	Start your OFA after the price returns to starting point	x2
3	OP outside PD-Range, re-enters within 30 min	Wait until 10:00 ET, then start your OFA after the price returns to starting point	x2
4	OP outside PD-Range, remains outside 30+ min	Wait until 10:00 ET, then start your OFA after the price returns to starting point	x1

Case #1 Exception: If yesterday was also a Case #1 skip day (opened inside PD-Range and RTH VP-VA), you may trade today. This pattern signals a multi-day consolidation, which can precede a breakout. All core setup criteria must still be met, and you may not take more than two trades.

🎯 Step-by-Step Execution Process

Step 1: Determine Trade Eligibility (09:40 ET or 10:00 ET)

Classify Opening Case (see table above)
If Case #1 (and not Day 2+ exception): Close platform, day is over
If Case #2: Begin monitoring at 09:40 ET
If Case #3 or #4: Set alarm for 10:00 ET, do not trade until then

Step 2: Monitor Price for VWAP Deviation Levels

Wait for price to reach one of these key levels:

Primary Setups:

VWAP +2σ → Mean reversion short setup (price in premium zone)
VWAP -2σ → Mean reversion long setup (price in discount zone)
VWAP +3σ → Extreme mean reversion short setup (highest probability)
VWAP -3σ → Extreme mean reversion long setup (highest probability)

Secondary Setups (Advanced):

VWAP → Continuation or breakout setup (requires strong directional bias)
VWAP ±1σ → Weaker edge, generally avoid unless very strong confluence

Do NOT trade between levels (e.g., price between VWAP and +1σ = "no man's land" with no statistical edge)

Step 3: Wait for Core Setup Criteria

All three must be present:

1. Location Requirement

Price has reached VWAP, OR
Price has reached VWAP +2σ or +3σ (for potential shorts/mean reversion), OR
Price has reached VWAP -2σ or -3σ (for potential longs/mean reversion)

2. Volume Profile Breakout

2-minute candle CLOSES beyond 30-minute Volume Profile's Value Area
- For longs: 2-min close above 30-min VAH
- For shorts: 2-min close below 30-min VAL
Note: Wicks don't count—only the candle close matters

3. Volume Delta Confirmation

Current 2-min candle's VD is relatively strong in the setup direction
Compare to recent 10-minute PVD/VDB readings (top 25-30% of session)
Not just positive/negative—must be strong relative to recent context

If ANY of these three are missing → DO NOT TRADE

Step 4: Verify Mandatory Core Checklist

Before entry, confirm ALL items:

⚠️ MANDATORY CORE CHECKLIST - ALL MUST BE TRUE

If even ONE item is missing → SKIP THE TRADE

Step 5: Evaluate Optional Confluences

Once core checklist is complete, check for additional conviction factors:

🔍 OPTIONAL CONFLUENCE CHECKLIST

Confluence Scoring:

3+ confluences: Good setup → Full 0.25% risk
5+ confluences: High-quality setup → Maximum confidence, full 0.25% risk
1-2 confluences: Acceptable if core is very strong → Consider 0.20% risk
0 confluences: Skip the trade

Important: Confluences add conviction but NEVER override core requirements.

Critical for VOF: At VWAP ±2σ/±3σ, CVD behavior is especially important. For mean reversion setups:

At +2σ (short setup): Look for CVD exhaustion, divergence, or flatlining
At -2σ (long setup): Look for CVD exhaustion, divergence, or flatlining
If CVD is accelerating INTO the deviation (not exhausting): Skip or wait for reversal confirmation

GEX-Specific Considerations for VOF:

High Positive GEX Day (Mean Reversion Regime - VOF'S IDEAL ENVIRONMENT):

VOF mean reversion setups have HIGHEST probability (market makers suppress volatility, price snaps back to VWAP)
This is VOF's edge over VAB on high GEX days
Consider:
- Taking setups with only 3 confluences (if core is perfect and GEX alignment is strong)
- Slightly tighter stops (mean reversion happens faster)
- Targeting VWAP aggressively (1:1.5 to 1:2 may hit quickly)
- Increasing trade frequency if multiple ±2σ touches occur
Caution: Even in high GEX, if CVD accelerates through ±2σ with news, respect the breakout (don't fade blindly)

Negative GEX Day (Trending Regime):

VOF mean reversion setups have LOWER probability (market makers amplify moves, breakouts through ±2σ sustain)
Best approach on negative GEX days:
- Skip pure mean reversion setups at ±2σ unless 5+ other confluences present
- Focus on continuation setups (VWAP reclaim/loss with CVD confirmation)
- If taking mean reversion setup, reduce target to 1:1.5 (accept quick partial reversion, not full VWAP)
- Watch for breakouts through ±2σ—these may continue to ±3σ or beyond
Consider: Switch to VAB framework on negative GEX days (better alignment)

Neutral GEX Day:

Standard VOF execution rules apply
Mean reversion and continuation setups both viable
Follow standard 1:2 to 1:2.5 target range

Step 6: Execute the Trade

Position Sizing Formula: Position Size = (Account Size × 0.0025) / (Stop Distance in Points × $50)

Round down to nearest whole contract (never round up).

Stop Placement Rules:

Place stop behind meaningful structure, such as:

Recent swing high/low that invalidates the setup
Extreme VWAP deviation (e.g., entering at +2σ short, stop above +2.5σ or recent high)
Strong momentum candle high/low that defined the extreme
Key AVWAP level that should hold
HVN/LVN that defines the trade thesis
For mean reversion: Typically 3-5 points beyond entry at ±2σ (structure-dependent)

Never use arbitrary distances. Stop must be logical within current market structure.

Entry Execution:

Preferred: Limit order (control price, reduce slippage)
Acceptable: Market order if momentum is strong and immediate fill critical
Best practice: Pre-stage bracket order (entry + stop + target) before execution

Target Setting:

Default: 1:2 to 1:2.5 risk-reward ratio
High Positive GEX: Consider 1:1.5 to 1:2 (quick mean reversion expected)
Negative GEX: Consider 1:1.5 for mean reversion setups (partial reversion only); 1:2.5 for continuation setups
No partial profit-taking (maintains R:R integrity)
Set target at logical levels:
- Mean reversion from ±2σ: Target VWAP or ±1σ (depending on R:R and GEX)
- Mean reversion from ±3σ: Target VWAP, +1σ, or even opposite deviation
- Opposite 30-min VA extreme
- Key AVWAP level
- HVN cluster (resistance for shorts) or LVN gap (for longs)
- Round number
- Prior day high/low (PDH/PDL)

Mean Reversion Targets (Most Common):

Enter at +2σ (short) → Target VWAP or +1σ
Enter at -2σ (long) → Target VWAP or -1σ
Enter at +3σ (short) → Target VWAP or beyond
Enter at -3σ (long) → Target VWAP or beyond

Step 7: Trade Management

During the Trade:

Do NOT interfere unless clear invalidation occurs
Monitor CVD for exhaustion/divergence near target
Watch for VSI formations that could accelerate/reverse
Check price behavior at intermediate levels (VWAP, ±1σ, AVWAPs, HVNs, round numbers)
GEX-aware monitoring:
- High GEX day: Expect quick snap back to VWAP, watch for rapid target achievement
- Negative GEX day: If in mean reversion trade, watch for re-acceleration away from VWAP (consider early exit)

VWAP Interaction:

If targeting VWAP from deviation, watch for acceptance/rejection at VWAP
Strong move through VWAP with CVD confirmation = consider holding for extended target
Rejection at VWAP = take profit, don't overstay
High GEX: VWAP acts as strong magnet—price likely to stall there (take profit)
Negative GEX: VWAP may be weaker magnet—price may slice through

Breakeven Rule:

After 12:00 ET (end of trading zone) and 1:1.5 R:R achieved
Once at BE, never move stop back

Exit Conditions:

Default Exits:

✅ Target hit at 1:2 or 1:2.5 R:R (take profit)
❌ Stop hit (accept loss)
🟦 Breakeven stop hit (accept breakeven)

Discretionary Early Exit (optional, must be tracked separately):

CVD shows strong exhaustion/divergence well before target
Price consolidates at VWAP for 15+ minutes (if VWAP was your target)
Major structural level shows strong rejection
Opposing setup forms against position
Negative GEX day + mean reversion trade: Price re-accelerates away from VWAP after brief retracement

Step 8: Post-Trade Documentation

Immediately after trade close, journal:

Trade Logistics:

Date and time
Opening Case (#1, #2, #3, or #4)
GEX Regime: High Positive / Neutral / Negative
Entry location (VWAP, +2σ, -2σ, +3σ, -3σ)
Entry price, stop price, target price
Position size (contracts)
Actual P&L (dollars and R multiples)

Setup Quality:

Which VWAP level triggered entry?
Was this mean reversion or continuation?
VPA context (30-min VP shape/breakout)
VD strength (relative to 10-min benchmark)
Confluences present (list which ones, including GEX alignment)
CVD behavior during setup (exhaustion, divergence, acceleration?)
GEX alignment: Did GEX regime match the setup type? (Y/N)

Execution Quality:

Why did you take this trade? (1-2 sentence narrative)
Stop placement reasoning
Target reasoning (did GEX influence target selection?)
Any deviations from plan

Trade Performance:

Outcome (TP/SL/BE/discretionary)
R:R achieved (actual)
MAE (Maximum Adverse Excursion - worst drawdown)
MFE (Maximum Favorable Excursion - best profit)
Time in trade (minutes)
Did price reach VWAP? (if targeting VWAP)
GEX accuracy: Did market behave as expected given GEX regime?

Reflection:

What went well?
What could be improved?
Would you take this exact setup again? Why/why not?
GEX-specific: Should I have adjusted expectations based on GEX?
VOF-specific: Did mean reversion work as expected, or did price break through deviation?
Screenshot/chart save

Daily Limits:

After 2 trades (including BE), STOP for the day
If daily loss reaches -0.5%, STOP immediately

🛡️ Risk Management Rules

Position Sizing

Fixed: 0.25% of account per trade
Optional GEX adjustment: Reduce to 0.20% if GEX conflicts with setup type (e.g., mean reversion setup on negative GEX day)
Never increase based on confidence
Never decrease based on fear (if setup is valid, take it at 0.25% or skip)

Daily Loss Limit

Maximum: -0.5% per day
Enforcement: If hit, close platform immediately
No exceptions - even for "perfect" setups

Trade Count Limit

Maximum: 2 trades per day
Includes: Breakevens (they count toward the limit)
Rationale: Prevents overtrading and revenge trading

Blackout Periods (Do NOT Trade)

🚫 US Bank Holidays
🚫 FOMC Meeting Days & Fed Chair Speeches
🚫 Jackson Hole Symposium Week (late August)
🚫 Holy Week (week before Easter)
🚫 Last 2 weeks of December & first 2 weeks of January
🚫 Case #1 Days (unless Day 2+ exception)
🚫 Major economic releases during 09:40-12:00 ET window (CPI, NFP, GDP, etc.)

❌ Top 10 Common Mistakes

Trading between VWAP deviations (no edge zone)
- Entering at +0.5σ or between VWAP and ±1σ
- Fix: Wait for price to reach ±2σ, ±3σ, or VWAP itself
Not waiting until 10:00 ET for Case #3 or #4
- Acting too early, misclassifying opening case
- Fix: Set alarm, do not trade until 30-minute confirmation
Using wicks instead of candle closes for VP breakout
- Entering on intra-bar moves without commitment
- Fix: Only trade after 2-min candle CLOSES beyond 30-min VA
Ignoring CVD exhaustion/divergence at VWAP ±2σ/±3σ
- Taking mean reversion trades when CVD is still accelerating into deviation
- Fix: At ±2σ/±3σ, require CVD exhaustion, divergence, or flatlining for mean reversion setups
Fading breakouts through ±2σ without confirmation
- Automatically shorting at +2σ without checking if it's a news-driven breakout
- Fix: Check CVD—if accelerating with volume expansion, respect the breakout (don't fade)
Exceeding 2 trades or -0.5% daily loss
- Revenge trading, trying to "make it back"
- Fix: Hard stop after limits hit, close platform
Placing stops inside VWAP deviation bands instead of beyond structure
- Stop at +1.8σ for a +2σ entry (gets hit on normal volatility)
- Fix: Place stops beyond meaningful structure (swing high/low, +2.5σ+, recent extreme)
Trading Case #1 days (OP inside PD-Range AND RTH VP-VA)
- Trading balance days with no edge
- Fix: Skip Case #1 unless Day 2+ exception applies
Not verifying VWAP reset time (18:00 ET)
- Using platform default (may reset at different time)
- Fix: Verify VWAP resets at 18:00 ET for ES futures; check timezone settings
Targeting beyond VWAP without strong conviction
- Entering at -2σ long and targeting +1σ or beyond without HTF bias or CVD strength
- Fix: Default mean reversion target is VWAP; extended targets require exceptional confluence
Ignoring GEX regime when selecting framework or setup type
- Taking mean reversion setups on negative GEX days expecting quick VWAP snap
- Fix: High GEX = VOF's edge; Negative GEX = consider VAB or continuation setups only
Not checking GEX before the session
- Missing critical volatility context that directly affects VWAP mean reversion probability
- Fix: Make GEX review part of daily pre-market routine (Step 2 in preparation workflow)

❓ FAQs

Q1: Should I always trade mean reversion at ±2σ, or can I trade continuation?

A: Default is mean reversion at ±2σ/±3σ (statistics favor return to VWAP, especially in high GEX environments). Trade continuation through ±2σ ONLY if:

Strong news/catalyst driving one-way flow
CVD accelerating (not exhausting) into and through the deviation
Volume expanding (not drying up)
HTF bias strongly aligned
Negative GEX regime (market makers amplifying moves, not suppressing)

These are rarer setups. When in doubt, trade mean reversion, especially on high GEX days.

Q2: Can I trade at VWAP itself (not deviations)?

A: Yes, but it's a different setup type:

VWAP reclaim (price crosses above VWAP with CVD crossing above zero) = bullish continuation
VWAP loss (price crosses below VWAP with CVD crossing below zero) = bearish continuation
Requires strong directional bias and CVD confirmation
Less statistical edge than ±2σ/±3σ mean reversion
Better suited for neutral or negative GEX days (not high GEX days where VWAP acts as magnet)

Most VOF traders focus on ±2σ/±3σ for highest probability setups, especially in high GEX regimes.

Q3: My account is too small to trade ES with 0.25% risk. What should I do?

A: Trade Micro E-mini S&P 500 (MES) instead. MES is 1/10th the size of ES ($5/point vs. $50/point). Even with MES, you may need $15,000+ to trade comfortably with proper risk management. Do NOT increase risk above 0.25% to compensate for small account size.

Q4: What if price reaches +3σ with massive CVD acceleration (news event)?

A: Do not fade it immediately. This is likely a news-driven event where fair value itself is being repriced, not just a deviation from old fair value. Wait for:

CVD to flatline or reverse
Volume spike with poor follow-through (exhaustion candle)
Price to form a reversal structure (higher low after touching +3σ)

Even at +3σ, respect the order flow. Mean reversion is probability, not certainty. Check GEX:

High GEX: +3σ should eventually mean revert, but wait for confirmation
Negative GEX: +3σ breakout may continue (market makers amplifying, not suppressing)

Q5: Should my take profit be at 1:2 or 1:2.5?

A: In most cases, your take-profit target should be 1:2. This provides a balanced reward-to-risk ratio while maintaining a high win probability. However, if your analysis indicates a strong directional bias with sustained momentum — supported by volume delta, trend structure, or multiple confluences — you can extend the target to 1:2.5. Additionally, consider GEX regime:

High Positive GEX: Favor 1:1.5 to 1:2 (quick mean reversion to VWAP expected)
Negative GEX: Favor 1:1.5 for mean reversion setups (partial reversion only); 1:2 to 1:2.5 for continuation setups
Neutral GEX: Standard 1:2 to 1:2.5

Q6: My prop firm or broker doesn't support Futures, or I'm not eligible to trade Futures due to my citizenship or location. What should I do?

A: If you don't have access to Futures markets, you can trade CFDs (Contracts for Difference) as an alternative. CFDs typically mirror the price movement of the corresponding Futures contracts (e.g., NAS100 CFD tracks Nasdaq-100 Futures, US30 CFD tracks Dow Futures), allowing you to follow the same setups and directional bias.

It's recommended to perform your market analysis on Futures charts, since Futures data offers accurate volume, structure, and institutional context. You can then execute your trades on CFDs with your broker, as the price action will usually align closely.

Keep in mind the following differences:

CFDs are broker-based instruments, not exchange-traded, so spreads, pricing, and execution may vary by broker.
CFD volume data is not real Futures volume, so always rely on Futures charts for volume-based or contextual analysis.
Leverage, margin, and swap costs differ by region and broker; adjust your position sizing and risk management accordingly.

In short, analyze using Futures data, execute through CFDs, and be aware of the structural differences between the two instruments.

Q7: How important is GEX for VOF compared to VAB?

A: GEX is MORE CRITICAL for VOF than VAB. Here's why:

VOF's Edge:

VOF is fundamentally a mean reversion framework (trading statistical overextension at ±2σ/±3σ)
Mean reversion probability is highest in high GEX environments (market makers suppress volatility, price snaps back to VWAP)
High GEX = VOF's sweet spot

When to Use VOF vs. VAB:

High Positive GEX days → Favor VOF (mean reversion optimal)
Negative GEX days → Favor VAB (breakouts sustain, mean reversion less reliable)
Neutral GEX days → Either framework works (trader preference)

Priority for VOF:

Core requirements (VWAP deviation, VP breakout, VD) - Mandatory
CVD exhaustion/divergence - Critical for mean reversion
GEX regime - HIGHLY IMPORTANT (determines if mean reversion will work)
Other confluences - Supporting evidence

If you're trading VOF on a negative GEX day, you should either:

Skip mean reversion setups entirely, OR
Only take them with 5+ other confluences and reduced targets (1:1.5)

Q8: Can I trade VOF without access to GEX data?

A: Yes, but you're trading "blind" to a critical macro factor. VOF can still be profitable without GEX, but:

Your win rate may be lower (you'll take mean reversion setups on trending days)
Your expectation management will be poorer (surprised by breakouts through ±2σ)
You'll miss the optimal entry timing (high GEX days are VOF's best days)

If no GEX access:

Be MORE selective (require 5+ confluences for every trade)
Default to 1:1.5 or 1:2 targets (conservative)
Watch CVD even more closely (it becomes your primary regime filter)
Accept that some "perfect" setups will fail (trending days override statistics)

Recommendation: Even free GEX approximations (SqueezeMetrics shows DIX/GEX publicly) are better than nothing. Make it part of your routine if possible.

Q9: What if GEX is High Positive but CVD is accelerating through +2σ?

A: This is a conflict scenario—GEX says "mean reversion," but order flow says "breakout."

Best approach:

Do NOT blindly fade based on GEX alone
Respect the order flow (CVD acceleration > GEX regime in real-time)
Wait for reversal confirmation:
- CVD flatlining or reversing
- Volume exhaustion (large spike with poor follow-through)
- Price forming reversal structure (double top, long upper wick, etc.)
If no reversal confirmation within 5-10 minutes, skip the trade

Key principle: GEX sets the probability baseline, but real-time order flow has final say. Never fade strong order flow just because statistics suggest mean reversion. Wait for the order flow to agree with GEX.

🎯 Final Checklist: Am I Ready to Trade VOF?

Before going live, confirm:

If any box is unchecked → Return to study/simulation before live trading

Framework Selection Note

VOF and VAB are nearly identical frameworks with different starting points. Choose ONE and stick with it—do not mix them in the same session. Most traders find one resonates more with their cognitive style:

VOF: Prefer statistical/probability thinking, comfortable with VWAP as primary reference, especially on high GEX days
VAB: Prefer structural/institutional thinking, comfortable with value area extremes as primary reference, especially on negative GEX days

Both work. Pick the one that makes the most sense to you.

📖 Abbreviations​

📘 What is VOF?​

Core Principle​

Starting Points​

Who This Is For​

Prerequisites​

Framework Overview​

⚙️ Indicator Settings​

VWAP (Volume Weighted Average Price)​

Periodic Volume Profile (PVP)​

Anchored VWAP (AVWAP)​

Volume Delta (VD) / AlgoStorm™ Volume Delta Candles (VDC)​

Periodic Volume Delta (PVD) / AlgoStorm™ Volume Delta Bars (VDB)​

AlgoStorm™ Volume Delta Thrust (VDT)​

Cumulative Volume Delta (CVD) / AlgoStorm™ CVD​

Volume Footprint Chart​

Gamma Exposure (GEX)​

✅ Daily Preparation Workflow​

Pre-Market (After 09:30 ET and Before 09:40 ET)​

📊 Opening Case Classification​

At 09:30 ET: Classify the Opening Case​

🎯 Step-by-Step Execution Process​

Step 1: Determine Trade Eligibility (09:40 ET or 10:00 ET)​

Step 2: Monitor Price for VWAP Deviation Levels​

Step 3: Wait for Core Setup Criteria​

Step 4: Verify Mandatory Core Checklist​

Step 5: Evaluate Optional Confluences​

Step 6: Execute the Trade​

Step 7: Trade Management​

Step 8: Post-Trade Documentation​

🛡️ Risk Management Rules​

Position Sizing​

Daily Loss Limit​

Trade Count Limit​

Blackout Periods (Do NOT Trade)​

❌ Top 10 Common Mistakes​

❓ FAQs​

Q1: Should I always trade mean reversion at ±2σ, or can I trade continuation?​

Q2: Can I trade at VWAP itself (not deviations)?​

Q3: My account is too small to trade ES with 0.25% risk. What should I do?​

Q4: What if price reaches +3σ with massive CVD acceleration (news event)?​

Q5: Should my take profit be at 1:2 or 1:2.5?​

Q6: My prop firm or broker doesn't support Futures, or I'm not eligible to trade Futures due to my citizenship or location. What should I do?​

Q7: How important is GEX for VOF compared to VAB?​

Q8: Can I trade VOF without access to GEX data?​

Q9: What if GEX is High Positive but CVD is accelerating through +2σ?​

🎯 Final Checklist: Am I Ready to Trade VOF?​