 $149,000. That's about what you would have made trading with Magic8Ball over the last few days. How did we get to that number? Well, let's back up a little bit. First off, what is Magic8Ball? It is a stock market prediction engine that I've built. My name is Brian. You can join by clicking the link. It is down below. Why did I build this? Well, like you, I one day got into options trading and I went out to YouTube and typed in options trading and I found a bunch of these type of videos where everybody's trying to sell you their secret sauce. Everybody's saying you can make billions of dollars and quit your job tomorrow. What a lot of these videos don't tell you is you can also lose everything in a single trade if you're not smart. So I wanted to be smart and I wanted to understand how the market works and in the process started building this software. So I hate calling it a prediction engine because really what it is is just a lot of math and that math. Let's just go down and show you. I've done this in other videos but we have predictions for different underlines. Each prediction is split into a text wall versus a chart. The text wall has some verbiage here tells you what the price is, where we think it's going to go, where it'll range metrics to back up that claim and areas of interest specifically volume profile and open interest. Both of those tend to pull that price like a magnet and then I don't know what this is called. I call it hot spots because I don't know what else to call it but it's just areas of the market that really draw that price. A very brief forecast and that was really you know kind of version 1.0 and then a lot of people said hey how do I trade this because like you or like me they were going out to YouTube they stumbled across one of my videos on it and they wanted to trade it but they didn't know what to trade. So I kind of tacked on this trading system. The problem is I wrote the trading system and I am not an expert in options trading. So immediately I said okay this is crap and I went out and I started researching all these YouTube channels and all these people that are really good at trading and each trade is based on or emulating one of my my heroes you know one of my idols. So for example butterfly trades actually is kind of trying to emulate Ernie with a zero DTE strategy. A few other traders as well but Ernie is a very big influence on that. Iron Condor pulls very heavily from Tom in X options. We'll cover X options here in a minute and then verticals also really heavily pull from the X options group and a few other groups that I've been in but mainly X options. I'm kind of emulating about a dozen different traders and their trading habits and trying to summarize it into one style of trade. So if you haven't watched my other videos please do. I really in depth talk about each one of these trades and how to use them and the fact that you can literally just copy this and paste it into thinkorswim. It makes it just mind-numbingly easy. Also has this chart again covered this chart in previous videos but quick recap the blue line is the volume profile it literally points right to where it's going to go. This red line really highlights where we think that price is going to go. Then we have a three-point range here of where the price is going to range and then these golden lines are the hot spots these areas of interest and you can see the magenta line the price and the green line the predictions. This is pretty typical of SPX is first thing in the morning it'll spike in one direction another and then of course the price follows that spike and then drops back down and the chart really helps you see what's happening here and then over time the prediction tends to stabilize on a certain part of the market and the price will just gravitate right towards it and it's kind of interesting to watch. When it hits one of these gold lines or these hot spots it tends to just kind of bounce along it until it figures out what it wants to do. So for point of reference today is December 12th I'm sorry December 23rd 2020 and it is 3.38 in the afternoon with the mark it's going to close soon and that's what SPX is doing and we're predicting a close near 38.42 right here. So for it to go to 38.42 it's going to have to pull up a little bit right up into there that blue dotted line could do it. All right so then I released the software and a lot of people came in and said well how much money does it make how much have you made now show me what it's made in the last 10 years I can't this is brand new it hasn't been running for 10 years it hasn't even been running for a year but with the help of some folks let's go up here especially for this video Grand Calabash and Vance Lauren we were able to plug in the profit and loss calculations for the last few days so if you started trading on 1215 and went all the way through 1222 blindly taking every single SPX trade this thing generates every single one of them without question you would have made $149,000 now that's also assuming that you had the capital to back up any drawdowns so let's dive into these logs real quick I'm going to pull this down you bet you I want to download that I'm going to download it it's Michigan and I have I'm recovering from a cold and I do not want to edit this video so I'm going to apologize in advance if I cough or sneeze I don't want to edit this video because I want to show you I'm not hiding anything all right so in there we have the logs for every single day and let's just pull one open I'm gonna have to move some stuff around the screen I already tell there we go all right so and I'm gonna resize this just to make sure it's actually in the view area there we go logs very simple we have the date time in UTC the underlying there's there's multiple the name of the trade butterflies iron condors verticals the premium the predicted and the closing amount what it actually closed at and whether or not it expired this is what I'd personally track is did it expire in profit yes or no because I'm looking for trades that 100% make money every single time then the actual trade that way if you want to do any sort of back testing I don't I'm not smart enough to know how to do that yet and then the actual profit and loss right here for each and every trade now again this is assuming you took only SPX and you blindly followed every single trade that it did and let's just go down and down and all the way down there's a lot of trades so this generates three take three trades for every single underlying every five minutes which is why we got about a thousand some odd trades so the total profit if you take in every single trade was this astronomical number here most of that's in part to NDEX I have a love hate relationship with NDEX because it's such a big index that when it goes good it goes good when it goes bad it really pulls that number down so we're focused on SPX right here and let's just the sake of argument highlight some stuff so we're going to talk about SPX only and our profit for that day on SPX was about 40k again that's assuming you had the capital actually cover any drawdowns and blah blah blah it's overall accuracy for all the predictions was 96% butterflies were 90% and then Vance and I had talked and he kind of convinced me to do this to split the butterflies up into three different data points the number of pins plus or minus five bucks zero the number of butterflies that made over 50% profit 44 the number that made less than 50% 33 but those were still in profit iron condors 100% accurate if you watch my previous videos you know why iron condors in the system are huge and then verticals are 97% accurate so really the main takeaway here is we're talking about following SPX and only SPX blindly every single trade that it does meaning you would have entered all these winners and losers for a total of 231 222 of them would have expired full profit nine would have been complete failures that was a good day at 215 I'm sorry 1215 again I'm not editing this video and if you look at this list you'll notice that it's not all peaches and cream everything is not good on 1222 so in the interest of full disclosure let's look at that day and see what's going on here so let's go here and 1222 we can open all these other logs but we're gonna focus on the bad day here 1222 let's see what happened okay let's scroll down I'm actually get rid of this little window here again same deal log same format got the trades you got the profit and loss off to the side here and you can see the expired versus not expired let's just go down all the way down and using NDX you can see NDX really pulled this thing way down that's why I hate NDX because when it loses it pulls the metrics and everything else down but we're talking SPX right here and this is why I wanted to focus on this so the reason why we had such a bad day that day is because SPX was only 58% accurate why butterflies I have a love hate relationship with butterflies but even on this crap day you can see the iron condors were 80% accurate and the vertical accuracy was 80% again iron condors that 20% failure rate would have completely been a massive drawdown which as I suspect is a big part of that number right here so really what are we getting at here the system's not perfect but even with its in just complete flaws bugs inaccuracies it's still able to generate money that being said if you just completely blindly followed every single trade you still got a good chance I wouldn't recommend it unless you have billions of dollars to just watch the world burn what I would recommend doing if you're going to start with the system is start with iron condors because they are big they are slow and they're usually 100% accurate this was a very bad day in the market made a lot of movement verticals would be your next stop takes a little bit more finesse to work with verticals and then butterflies of course are probably the hardest thing to get done right that being said let's just crack open another log again Michigan winter I got a cold losing my voice let's just I'm going to randomly pick a day what is this 12 19 we're going to go down let's just see what happened on 12 19 oh yeah that would have made pretty hefty chunk of money here 46 K let's go down and you see and that's even with all these flaws like 0% butterflies for NDX but let's go down to SPY I'm sorry SPX because that's what we're baselining here and there's SPX and all it's glaring see butterflies only 39% I am working on the butterfly code it is not perfect the overall accuracy was drawn down because of that butterfly code being inaccurate but iron condors we got 100% verticals 90% again this is this assuming you got into Magic 8 ball followed SPX and just blindly took every single trade that it generated I wouldn't recommend doing that but you could if you had a lot of money so to follow up and kind of close this video before I start coughing again if you're new what I would recommend you do is you kind of go in observe check these logs some things are better than others like SPY is actually been slightly more accurate than SPX I'm kind of surprised to see that SPX was more accurate this day but a lot of folks focus on SPX so I'm using that as a baseline and don't just take what these trades are giving you I mean don't just blindly follow the system we have an education section in here where I have already gone out to YouTube and I found people that know what they're talking about or in some cases they found me and I'm blown away by their knowledge and let's just go through them so Ernie with his zero DTE it's sorry it's zero dash DTE.com he really specializes in butterflies so I'm like hyper focused on watching his videos Tom with the Aramir trading really super smart guy amplified investing big shout out to Vance really helped me with those numbers I appreciate that and his videos are actually really good you should watch those axe options my second home away from home I'm in the axe options trading group let's just kick that open big shout out to the axe options group again these trades kind of emulate different people and a lot of the people that I'm emulating are actually in this axe options group so you know go out there and join the group if you can't find them it's just axe like the axe they chopped down a tree with options and go in there I'll see in there and then there's trading made simple with Sandra and of course my videos with Magic Ape Paul and I just put a lot of two videos out there sorry losing my voice put a lot of how-to videos out there the major takeaway here is if you join up you know don't just rely on the service definitely seek out these mentors and each one of them either has their own YouTube channel or their own service and I'm not I'm not getting paid a dime to say this they're just people that I have mad respect for and I can tell you without a doubt you will not waste your time going through their videos as opposed to going through this ocean of YouTube which is just abysmal definitely follow people that know what they're talking about and once you get into the swing of things and you are comfortable and you may be done some paper trades with this then put in some real money real quick if you want the service dead free iron condors are the way to go I'm just gonna level with you if you trade an iron condor it has a 99% chance of making profit do not ride that to full expiration because the risk to rewards horrible I cover how to trade iron condors in another video on my channel but if you want to get to service free you do an iron condor and even late in the day it would be $45 to nail this iron condor I recommend you get into the iron condor around 945 Eastern Standard Time and just that one trade will pay for a month's worth of the service and you'll even have profit because you typically enter at about 50 to $75 so happy trading I hope to see in my group if you do just you know jump in and say hi to everybody it's a really great group of people that we're building and I also again cannot recommend enough these folks down here in the education channel definitely check them out talk to you later