OK, here's what I do.
I have a simple desktop install of Elite Dangerous from Frontier (no need for a separate Steam installation and no need for a separate Oculus installation).
Startup Oculus Home, select Settings in the left hand menu, select the General tab, next to "Unknown sources" click to allow content from unknown sources (you'll only need to do this once).
Now startup Elite as normal from your desktop shortcut.
Go to the graphics settings and under the 3D option select "HMD headphones".
That should pretty much be it. You may have a problem with not hearing sound from the Oculus. If this happens you need to click on the speaker icon in your Windows system tray, click the top where it says something like "Speakers" and pick the Rift option instead.
Re: the graphics settings for Elite in VR - I STRONGLY recommend installing DrKaii's EDProfiler utility which allows you to set up different "profiles" (collections of graphics settings, etc) for both VR and non-VR gameplay. Then what you do is pick which profile you want to use before launching Elite.
You can read about and get EDProfiler over here:
https://forums.frontier.co.uk/showt...er-Robust-Settings-Profiler-Switcher-Detector!