 Hey everybody. My name is Brian and we're going to talk about Magic A-Ball, the stock market prediction engine that I've developed. I've made a few other videos about it, but this is the official how to guide. What is Magic A-Ball? Well, it predicts price movement and it works on basically any stock and basically any index. Currently, I have it limited to scanning just a small subset of them, including SPX, SPY, XSP, QQQ, Apple and Tesla. If you're curious, there's a link down below to join, but we're going to talk about this in depth. Remember, this software is fairly new. That's why I have it scanning just a few things. I want to make sure it's super accurate before I open it up to the rest of the S&P 500. We need to start somewhere, so let's start with some foolish assumptions. I'm going to assume a few things about you. You should have some experience and understand risk management. Now, experience with what exactly? Well, options trading. Experience trading itself is very complex and not beginner friendly, but just have some experience. I don't expect you to be a guru, but know what you're doing and definitely understand risk management. Understand some basic concepts, know your credit spreads. This thing is born on top of credit spreads and of course never risk more than you can afford to lose. That's just trading 101. In short, don't do stupid things. What Magic A-Ball will do? It will show you market movement. It will use math to predict the price action and give you metrics to back up those predictions. It will even suggest some trades and you can copy and paste those trades into thinkorswim. We're going to demonstrate that later on in the video. Remember, this is really meant to be an indicator. This is not some giant crystal ball. What Magic A-Ball won't do? It will not predict the future. This is not going to tell you if we're going to war or if COVID is back with a vengeance. It's not going to tell you if the market's going to crash for no reason. There's no black swan event predictions. It's also not going to tell you how to manage your trades or manage your risk and it will not give you financial advice and it will not save you from yourself. You notice I have that highlighted. By or beware, you as the investor are responsible for your investments. This is not some all-knowing oracle. It's just a lot of mathematics. How does this work? Well, magic, I've always wanted to say that. Actually, I've said it repeatedly because people will come into our discord and just demand to know every little detail. Some guy even demanded to see all my source code. It's just, I'm going to level with you, math. It uses a lot of math and I've talked about this in previous videos. There are groups of analyzers and each analyzer inside of a group will examine a different part of the market. It hyper-focuses on that part of the market and tries to become an expert at it. So how this really works? Well, it uses gamma exposure, Greeks, open interest, volume profile analysis, high, low indication, statistical averaging, multiple variable regression, machine learning, and of course, magic. There is some, I hate using the word proprietary, but there's some proprietary stuff in here that I'm still working on. At its core, this uses a lot of math to try and figure out what the market is doing based on what the market's already done. How accurate is it? That is the million-dollar question. It depends. It depends on what day and what symbol and let's talk about this. So I have three days, 1214, 1215, and 1216, three days back-to-back, three very different market days and two different symbols, SPX on the top and SBY on the bottom for each day. Looking at this, SPX on 1214 on the left had an overall accuracy of 55%. Now, what does that mean exactly? This accuracy is only tracking the trades that the system generates, and it's tracking those trades to expiration, meaning 55% of the trades it generated would have been completely full profit at the end of day. And then it breaks it down to butterflies, iron condors, and verticals. Verticals are your put credit spreads and your call credit spreads. So on 1214, SPX was 55% accurate with butterflies at 2% and iron condors at 100% and vertical at 63%. That sounds horrible. It was. 1214, the market was absolutely nuts. But look down below at SPY, a lot of people think that SPX and SPY are identical and they are not mathematically mirrored, meaning they're not actually identical. They are different. And you'll see the accuracy is different. SPY was more accurate at 64% with 27% of the butterflies, iron condor had 83s, and verticals had 83s. 1215, the very next day, completely different market. The market was, I don't want to say flat, but it didn't have these huge jumps up and jumps down. You know, the market didn't rip up or rip down. So SPX was 96% accurate, butterflies 90, iron condors 100% accurate, verticals 97%. But for SPY, overall accuracy, 93%. Butterfly accuracy was 94%, iron condors 90, and verticals were 96%. What does that mean again? Just to recap, that means, for example, I'm looking at the middle column. There were 231 trades, 222 of them expired full profit, and only nine failed. That's pretty darn good. So let's add in yet a third day, 1216, all the way on the right. We have SPX at the top, accuracy 75, butterflies 35, iron condors at 100, vertical accuracy at 89, and down below SPY, 97% accurate, with butterflies at 100%, wow, and iron condors at 92, and vertical at 100%. So what's really the difference here? What's changed? Well, you have different days, which means you have different markets. You have different symbols, which behave slightly differently, even if they're supposed to be the same. And on top of that, I'm also improving the code in the background. Between 1214 and 1215, I released a newer version of the butterfly code, which shot the accuracy up, and that is in part two, Ernie was zero DTE, I'll talk about Ernie in a little bit. But just know that each day is different, each symbol is different, and I am constantly improving the code. So when you ask how accurate is it? It really depends on the situation, what day, what symbol, and your individual trading styles and patterns. However, these accuracy numbers are assuming you are going to ride or die that trade from the moment you open it all the way to expiration. That's what I'm aiming for. What if I'm a professional? Well, that's a very good question. This is actually in a few groups with professionals in it. For example, the Axe Options Group, I'll talk about them a little bit later, it is full of professionals, and these are people that make a living in trading. Well, they still use Magic Ape Ball as an indicator. What they do is they actually ignore the trades, because I'll admit the trades are a little bit rudimentary for their skill level. They use their own strategies, but they watch the volume nodes, and we're going to talk about that in depth when we go over charting. That's really critical. Watch the nodes and watch the predictions, it will tell you where the market is going. So yes, even as a professional, you can use this. Bugs and Issues, I absolutely love that meme on the right. Me giving advice on how to write code, and then my code just completely exploding, because that's just how the world works. You see, people are flawed, and people write software, so the software's flawed. I'm going to let you in on a secret, All Software. I'm going to repeat that, All Software. Doesn't matter where you got it from, doesn't matter who created it, or how much you paid for it, All Software has bugs in it. This is still an early version. There are continual fixes, but crashes do happen. Be patient, I am improving it over time, and I'm expecting this thing's going to be absolutely amazing when it's more mature. Up and Discord, how do you even get into Magic 8 Ball? That's a good question. There's a link down below, and when you go to it, you are presented with this screen, Help. You probably won't see these little channels down here until you're fully in. So this is what that link looks like when you open it up. It's 25 bucks a month, or 250 for an entire year. Remember that 25 bucks a month, you can make that back in a single trade. I'll show you how. It's called an iron condor. They're ridiculously simple, and they're usually really, really scary, accurate. All right, so once you're signed up, you will get an activation code via the email that you use to sign up. Copy and paste that code into this launchpad bot. Just copy and paste it right there, and LaunchPass will let you in automatically. Sometimes it gets a little busy, so you have to wait a few minutes. I do apologize. But once you're in, you'll see all these other channels down here. Now, just a note, if this isn't for you, cancelling is the same way. You just open LaunchPad, type in the word cancel, and boom, it will cancel your subscription and pull you out at the end of your trial. But before you do, let me know why you're leaving so I can try to improve that. Anyways, once you're in, you'll see all these chat rooms down here. So here's our members' chat, and we've got a bunch of different rooms. And then we have education. And I put this in here because there are people that are way smarter than me, and there are other folks actually asking to get in here. So we have Ernie with his zero DTE. He really kind of specializes in risk management. I think he calls it asymmetric risk management. I won't give away all of his secret sauce, but his course is a zero DTE. Absolutely amazing. Aramir, he's Tom Nunnamaker at arrowmir.com. I hope I'm saying that right. Tom is actually one of our mentors, and check that out. It's pretty damn amazing. Axe options. This is where I'm going to level with you. The real pros I've seen hang out. I'm not discounting these other folks, but I actually have a channel inside of Axe Options, and they teach me a lot. I think I've learned more in six months of that group than I learned in two and a half years of trying to watch YouTube videos and things like that. It's just very interactive. I love it. These guys are like my second home. It's a huge shout out to Axe. And Option Sandy. She's one of our mentors as well, and she has her own YouTube channel and her own Discord channel, so definitely shout out to her as well. I will probably put more in here. I try to heavily vet those people to make sure that they're not just some cheesy sales guy trying to make a quick buck or some scam artists. I want people that actually are willing to mentor and train and work with other people. And you can see I have this little mentor section over here, and that's where they are. You don't actually have to have an education channel to be a mentor. Just be friendly and know what you're talking about. All right, down here we have the predictions. This is why you're watching the video, right? All right, so at this time of recording, we have SPX, SPY, QQQ, RUT, Apple, Tesla, and NDX. And we're gonna dive into these in depth, but I just wanna show you what it looks like. This is live at the time of the recording. So it just kicks out these predictions every five minutes. And it gives you a text wall, which we'll examine in another section here. And the chart, which we will rip apart and go in depth. But that's the basis of it. You have a text wall, you have some suggested trades, and a chart. And there's one for each symbol. It's just dead simple to work with. It's very easy to understand. And I've tried to make it extremely user friendly. It does have some limitations because it's all in Discord, meaning I can't have some real time chart. I have to do these polls every five minutes. But it is improving, and I am working on ways to improve it. All right, we're gonna talk about the text wall. When we go into the predictions, and we go in here, you'll see there's text and a chart. So let's pick these apart real quick. When I say text wall, I'm talking about this highlighted in green, this big wall of text. And I've tried to simplify this over time, because some of the complaints people have had is this is just too busy, and it's too hard to understand. So let's take a look at it here. We have a timestamp, and then we have the prediction for, and then whatever we're predicting, SPX, because we're in the SPX channel. If we were in SPY, it would say SPY. So the prediction for SPX for our date, our time, and then the version at the timer recording, it is 109. Now, the text wall itself is different sections. So this top section here is the prediction, and this updates every five minutes, so it may actually update while I'm recording this. But it's saying SPX current price of 3810.99 is expected to move down, closing near 3806. But will range between 3813 and 3800. So it really tells us what's going on here. We're at a current price, the direction moved down, and then closing near our actual prediction, and it will show a range. So let's take a look at the market and see what's going on. Oh, yeah, this is today, not looking good. Everything's going down, but we're gonna say, it's gonna range between this 3800 and 3813. So right up in here is where we're gonna range. We can even box this in if we wanted to. So let's go ahead, I am not a thinker swim guru, but it's gonna range in that kind of bubble here. And you'll see it's actually kind of entered what I call the target area or the target zone. So it's going to hit here and just start ranging in here. Now, let's flip back. We have some metrics to back this prediction up. This is for all you math nerds and developers like me. We have a short term. In the short term, this will actually pop up. At least that's what the math is telling us. It's gonna pop up about three bucks. But it's gonna close at or near 3806. I mean, it's just gonna go down. Long term is a bit confusing. This assumes the market had no end. The market just goes until midnight. It's gonna go to 3800. So it's gonna keep dropping down towards that 3800, but we don't have enough time for it to get there. Usually sometimes the market proves me wrong and it'll just drop down or even further. We have an expected move of $12.38 with implied volatility of 2299. Spoiler alert, if you take these two numbers and flip over to thinkorswim, they will not match. And it's because I am calculating these manually. We also have delta, which is what I call true market center. There is the calls and the puts and the difference between those two is the delta market center, which is 3812, dead center. But remember, we're going down, so we're gonna go below that center. And then gex or gam exposure and it is 3815 right now. So we also have volume. So the winners of puts, meaning it's gonna go down and the volume strength, it's going to go down by about half a percent, 0.54. All right, lots of talking. Now we have what I call areas of interest. Areas of interest are a combination of volume profile analysis, open interest and hotspots. And we'll talk about these in depth, especially when we get into charting. But the volume nodes are volume profile analysis. You can see we have two nodes, node one and node two. These are the two strong areas of the market, 3,800 and 3,790. It's very important you understand what we're talking about. This is volume and let's flip over to thinkorswim. Let's go over here. And what we're doing is we're actually getting this out of the options chain. So it's pulling all of the information out of all of the options. And this is why this thing, it just is a complete memory hog and I have to run it on a server because I've seen it make desktops melt but it analyzes this whole chain multiple times per second to try and figure out what's going on. Let's flip back in here. So the two major areas of volume are 3,800 and 3,790. We also have the strength or the volume. You can see node one is at 410890 where node two is smaller at 21032. We also have a rate of change. Node one is actually shrinking a little bit by 0.07 where node two has not changed at all. What this tells us really is that the market's going down. There's 3,800 is the main node. That's where we're gonna expect that price to go. And remember, it also lines up with this long term. 3,800, 3,800. So yes, long term is actually node one. That's where the market's going to go. Node two, this is another area within the market that, well, buyers and sellers are gathering going, well, I think it's gonna go down a little further. One special note is that nodes are not static. They do change. That's why we have this rate of change in here. I'm looking at 3,790 and 3,800. These are fairly close numbers. So what could probably happen is these two nodes could merge and become a giant node. At which point, because node two is actually lower, you'll see this drop down to probably 3,795, usually the difference between the two. Meaning the market could actually dip lower. So magic eight ball does actually adjust as the market changes. Now, open interest is like a magnet for price. So it's always good idea to kind of correlate that. And you can see the open interest, we've got 3,900, 3,910, 3,750 and 3,800. Boom, there's that 3,800 number again. What that's telling us is a combination of open interest along with volume profile analysis and all the math that this thing's crunching in the background, everything's screaming 3,800. You may be going, why don't you just tell us that in the beginning? Well, I actually am. It's right here in this prediction. The current price of 3,810 is expected to move down closing near 3,806. Why doesn't that say 3,800? You have to remember the longterm is end of time. Meaning if there was no market whatsoever, it would go to 3,800. But we have time left in this market. It's currently 2,15 and the market's gonna close in about an hour and 45 minutes. So we may not actually get to 3,800. We're gonna close around 3,806. Sounds super confusing if you're not a math nerd like me, stick to this top area. And then hotspots. This takes some explaining. We're gonna talk about hotspots when we're in the chart. So it looks like it did update. Let's go down to the newest one. But these yellow lines in the chart are hotspot. And what that means is in this red box, which we'll talk about later, that is the node that red box. These hotspots are parts of the node that's going to attract price. So that's why you'll sometimes see this kind of ranging. You see how it kind of hovers around this hotspot. We're gonna talk about that in depth and charting, but I just want you to understand what a hotspot is. And again, one of the major hotspots is that 3,800. So everything is pointing to 3,800. Mathematically, it would be very hard for us to hit 3,800, but we're gonna come damn close. And then at the very bottom here, we have some trades. And we're gonna talk about these in other sections. But we have butterflies, iron condors, and verticals. And you can literally, I love this part, you can just highlight it, copy it, go out to thinkorswim. And then you can go out to here and paste it right in. Hit that little unlock to get the newest price. And you're good to go. You can just confirm and send, which I wouldn't recommend. Or you can analyze the trade to make sure it is actually what you wanna do and how you wanna do it. Highly recommended, you analyze everything before you just blindly go out and accept a trade. Remember, you are assuming all the risk here. But if we wanted to do a butterfly, it's literally that simple. You just copy, paste it, analyze it, and you see right around the 3,800 mark, bang, right there, at closing. I'm looking at this little box over here. It'd be about a thousand dollars if it dropped currently it'd be 21 bucks. Let's talk about understanding the chart. Now the chart has actually improved quite a bit here. Let's go down here and let's just grab the newest chart. I'm gonna flip into a couple of these so you can see. And then we're gonna talk about the chart in layers. So the chart itself looks like this. And it looks super confusing until you understand how it's constructed. And you can see each symbol has its own chart and each symbol behaves differently. So let's tear this chart apart and let's explain what all is going on here. You notice how some have this red box while others do not. All right, let's flip over to SPX and I'm gonna pull up my little file browser here and we're gonna look at these images. All right, so we're gonna kind of pull this in. All right, here is SPX and we're talking about layers now. This blue line represents the volume profile on its side. And what it's doing is each one of these little things that spike out, this is a volume node. So you can see our main volume node is at 3,800 and this is zoomed in, it doesn't show the entire market. We're only showing from 3,800 to 3,880. Remember the market is much, much bigger. If we went out to the options chain and did all you would see it is much, much bigger. But we don't want all that information cluttering the screen. So that's why we do this. Then we show the price. The price is displayed as this magenta line overlaid on top of the volume profile. So you can see we have a node sticking out here and a node sticking out here and the price is kind of treading between these two but this node is much bigger which is going to pull that price down to it at 3,800 like we've been talking about. Then we have the prediction history. This was a highly sought after feature. I put this in and removed it and people got mad when I removed it. So I put it back in and at the time of this recording it's represented by this green line. And this is showing you that it thinks it's going to go here and here's the time. This is UTC in case you're wondering. So 1430 your market open, it shot up and then over time drop down and then shot up. This is usually early market. You get a lot of that volatility and then as the day matures around 1500 UTC the market starts calming down. And you notice it's right here, right at this node but then the market shifted and it's down in here. This is the main node. This is also the longterm and right here is where we're predicting it's going to close. So we're still expecting this to drop down. That gives us a range. So I put the range in as these dotted lines. You have your longterm prediction which is this bright red line. This is, you know, if the market had no end and it's right on top of that 3,800 node and then we have our range, we have our short term which it's going to bounce right at that short term and then our predicted close which is this blue dotted line. Next, we have a red box indicating the area of the volume node. What does that mean the area of the volume node? Remember the node itself isn't just this 3,800. It's this giant area. And when we're in the node it will zoom into this. You see how the red box takes up most of the screen. So this is actually node one. We're currently inside of node one. This black line is true market center. That's that delta. And we have hotspots. This is areas of interest within the main node. And you can see here's one right here and you've got a huge volume spike and then a smaller volume spike and the price is trending right around there but it's dropping below this hotspot. So it's going to start going down into our range. Special note, there are multiple nodes. You see over here node two. So just be aware there are other nodes out there fighting for this traffic and this competition. This volume could shift. And that's what I've tried to explain earlier is these nodes are not static. They do change. That's it. It's really that simple. So let's just go back to the beginning and whip through this again. So we start with the volume profile on its side. We can show exactly where the prices are going to go. In this case, it's going to go down to 3,800 dropping down from this number. We track that price as this magenta line. We show the prediction history as a screen line. And we show our range as these dotted lines and this red line is the magnet which is going to pull the price down to it. That's our main node. Speaking of node, this red box is the node area or the range of the node itself. The black line is true market center. You can see we're actually below market center dropping down. And these orange lines are the hotspots within the node. These are areas of high interest. Don't confuse that with open interest. This is mathematics in the background telling us these are where the prices are going to want to go. Remember, the price may not always go down to this 3,800 node. When in doubt, look at these hotspots because the price is going to hit one of these hotspots and kind of tread around it and do this weird serpentine thing. That is until another hotspot pulls it down further or up further depending on the market. There are other nodes out there competing and they're represented on this chart as a darker red line and these nodes can and will pull against that price. When in doubt, what do you look at? This red line. Look for the bright red line because that is what's going to pull that price like a magnet. This is what I was talking about earlier. Professionals take note. If you just want to know what to do, look at this red line. If it's at 3,800 and then suddenly snaps up to 3,860, that means the market's going to pull up. If it's at 3,800 and snaps down to 3,750, that means the market's going to pull down. It's really just that simple. Now, let's go ahead now that we understand that and take a look at some of these charts here. So we have SPX. You can see SPY and you can see they have a much different volume profile, that blue line right here. SPY has a lot less volume pumping through it. XSP we're currently not in a node and the nodes, there's two of them, don't have a whole lot of area to them. They're just one main strike but you can see that price is still gravitating down due to the strength. QQQ. Currently in a node, but there's no hotspots because we just have this giant volume spike right here pointing at 270. I put the volume profile on its side because it literally points to the strike that it's going to go to. It just makes it ridiculously simple. And then RUT, let's kind of go down here. Much different pattern on RUT. You can see we have some hotspots or areas of interest here. Volume profile is really spiky but right here is our main and the prediction has been kind of all over the place but it's dropping back down, kind of indicating the slow trend down. Whenever you see the prediction kind of do this down, up, down, up, that means it's ranging and it's just going to kind of do this weird hover until it figures out a direction. Notice how this prediction did drop lower. Apple, you notice there's nothing in here for Apple. Why? Because this is designed for zero DTE. Eventually I will expand this out to multiple days but right now it's zero DTE. Whenever we are not in a trading day I will put a very generic prediction. So for 1223, we're expecting Apple to have a target of about 130 and the volume to back that up is 52751. Tesla, same deal. And let's look at NDX. NDX is a much busier chart because it's a much bigger index and we have this prediction line kind of going down snapping down to this 11000. So we're expecting the market to pull down. Now that you know how to read the chart it just makes it dead simple to just go in here and say, okay, I want to trade SPX, what do I do? Well, here's the prediction. We're expecting it to go down. You've got the trades you can copy and paste and then here's the chart that you can just very clearly see what is happening here. And just in the time that I've spent recording this little section you see the price action is actually snapping down. Let's verify that with our chart. Oh yeah, it's going down. Right down into our zone we're at 3805 and we did say we're gonna close around 3806. So it's gonna range around this box unless something major with the market happens. Let's talk about the butterfly. So what is a butterfly? We're gonna go to options strat and I just wanna visually show you what a butterfly is. It is a neutral trade and it really does not have any directional bias to it. This is a typical butterfly here where you have these red areas. This is loss. You see how it's at negative 390 and then up in here you see that little black ball. The profit just goes up. So the closer you are to the center of your butterfly the more you're gonna hit it. That's called pinning the trade when it's right here at the very top like that. That's like hitting the lottery. Usually butterflies are over in one of these corners here but point being as the price, let's see it's going down. We'd be over here going down. You would be at a loss and then it would go into the profit tent and start making money and this is where you would have to decide what you wanna do. Do you wanna collect the profits and run or do you wanna try and pin it or do you wanna risk it, keep going lower and lose or if you're over here if it's gonna go back up and you'll lose. You have to be within this range and let's take a look at this inside of thinkorswim. So we've got, this is dropping down, we're on SPX and we have this nice range here that we think we're gonna be in. So let's go ahead and look and I'm gonna actually just grab this guy. We're gonna move him over here so you can see the range that we're kind of expecting here. It's gonna stay kind of in there. Now let's back that up with Magic Ape ball. We're gonna go into our Discord, go into SPX and this is literally as simple as copy and pasting. I made this so that even somebody like me can do it. Believe it or not, even though I wrote this I am not an options guru, I'm horrible at options but I can actually win time and time again using this system just because it is so simple. All right, so we're gonna bring open the order entry. If you don't know how to get that you either go to trade or analyze up here at the top, right and I use this little tab here to bring it up and you just hit paste and then you hit unlock to unlock the newest price because you see that price is flipping around. Remember the markets don't say still for anybody. Don't blindly hit confirm and send. Instead you're gonna wanna right click this and analyze that trade and then you can hit this little risk profile thingy here and this shows us our butterfly. Now this is what I'm talking about here. Look at this little black box here where my mouse is and then you see this line as my mouse moves. That's time. So if we were to move and let's say we're right here and we're moving down, you see that magenta line is at a negative but it's decreasing. So it's actually going into profit. That's called our profit tent and then this blue, actually I think the blue line is called the profit tent but this magenta line is currently time. So if it were to close right now we would be at $7.53. It's this little line right here. I wanna try and zoom that in. That little line, you can barely see it. That's where the price currently is at $3806. So it would zoom into the profit tent and then we would decide where we wanna close. So if we close now, we would be at about $24 and change. If we went to end of day, this blue line, the nice butterfly looking thing, end of day right now would be $383. So it costs us about $470 to get into the trade and at end of day it would be worth about $399. Actually just updated about $599. And we could actually try to pin this. You notice our pin for the trade is at $3800. Our main node, that volume node, let's flip back into magic eight ball here. So it's centering that butterfly right on this main node. So as the price comes down into it, it's going to go into that profit tent this range and wham, we will start making money. You may be asking, why didn't you put it at the predicted line? Because sometimes the markets, especially SPX does not like to cooperate. So what I've seen is I'll center the butterfly, like I'll say here, and that price would just shum right through it and we would lose all the money. So you have to kind of buyer beware and we're gonna talk about that a little bit. Know what you're doing, but this is the basic butterfly here. Let's talk about the risks associated with the butterfly. It is actually minimal. This is something, and let me flip in here. This is something that traders of future or earning with his, let me go into education, his zero DTE course really covers. And again, I'm not going to give away his secret sauce, but he talks about asymmetric risk, meaning risk very little money to make a lot of money. And he has a different system, but I've been working with him and he's actually in our discord and he's been helping us out. And if we go in here, let's see if it's in, we're actually talking about this as I'm recording. This butterfly here, they're saying this $380 butterfly is worth some money now. So it's a, let's see. $385 butterfly is now worth about $1,700 per contract home run. And this is in part just, everybody working together to try to improve this, but we're talking about risks versus rewards here. So butterflies, that's what they're really good for. Low risk, high reward. The problem is the bigger butterflies have more risk and less reward. It's kind of a trade-off. So you want kind of a specially sized butterfly and that's what Ernie has really been teaching me. And I think I've got it down so it's better. It's not perfect, but it's getting there. And you can see that the butterflies are starting to make money. If this were to rip up, I would lose $400. I'm looking at this little box down here, $470. But if it wins, boy, I could just nail that sucker. Look at that. And if it were to overshoot and go way down, it would be at negative 470. So you don't have to hold this to expiration. You can eject and see this magenta profit curve here. You can just eject any single time. So if I was super nervous, I'd take my, what is this, $57 and change and just run. I could actually do that if I wanted to. Typically, butterflies are low risk, high reward, but you have to really watch them because the market can move against you very, very quickly. So we've talked about the risks. What's the plus side of the butterfly? I mean, look at this thing, bam. I mean, if you know exactly where you wanna put this, you can make a crap ton of profit. And butterflies, you can make them as big as small as you want. Remember, the bigger butterflies aren't necessarily safer. It just means you're gonna risk more money, but you could make a little bit more money as well. So one thing I like to do is I like to go into the actual prediction and I'll look at the hotspots here and I'll say, okay, are these volume nodes, these little spikes, are these growing out? Like if this one starts growing, the market may pull up, but I don't see it happening today. This spike is so stinking huge for this 3,800 node. And you can see, I've been recording this all in one day, you can see the markets just been pulling right down to that 3,800 node. It's almost unfair. It's like fishing with dynamite because we know this is gonna go down to that 3,800 node and you see the price action grinding down towards it, even though the prediction, the screen line, bam, was snapping down here earlier and this red line's been here pretty much most of the day. So if you got in when the price was here, whoa, baby, you are making some money. So butterflies are amazing when it comes to reward. If you can nail them, especially if you can pin them. Remember, pinning is hitting it pretty much dead center. That is max profit. This simple butterfly right here would be worth about $1,000 and we'd only be risking 470. So that is an amazing risk to reward ratio right there. And Ernie, actually, I should put this out there. Traders of Future, Ernie is zero DTE. This is what he specializes in butterflies and he is way better than I am. I'm trying to actually kind of compete with him in the sense that I want my program to be able to beat him at butterflies. I don't know if it'll ever happen but I'm gonna give it a try. This guy's like the Wizard of Oz when it comes to butterflies. I can't say enough good things about Ernie. All right, entering a butterfly, how do you know when to enter a butterfly? This is hard. I'm gonna level with you. It's something that I personally struggle with. Remember, way back in the beginning of this whole video I said that there are bugs because people are flawed and they put those flaws into the code. I am not an expert at options trading. I'm just really good with computers. So I struggle with this. I see this price like jump up here and I'm like, oh, I should put a butterfly here and then the price drops down. That's why I'm building Magic8Ball. So how do you tell? Well, it's in the text wall here. You look at the volume nodes and you can see how this node is collapsed into one giant node now. But if we scroll up and I wish I need to get this on a website, you see a few predictions earlier. It was actually two nodes and it's collapsed into one. You can see node one is so much bigger than node two. I'm looking at these guys, 3,800 and 3,870. Node one, the volume on this is so much bigger than the volume on node two. So we know that the price is gonna go to that 3,800 and that they're, because they're so close that these could merge. And if they merge, it's usually the in-betweens. We got 3,800 and 3,870. So this would drop down to about 38,85-ish, 82-ish, somewhere in there. Now that is what I call the point of control but not actually the end of day prediction. The point of control is the strongest part of that node. And let's go into the chart here. This red line is the point of control in the node or the strongest part of that node. And then you have these hotspots which are different areas that may attract the price. So I'm looking at this magenta line going, it's gonna snap right down to this 3,800 but we have this guy right here at 38,30. That could very easily pull this price up and 3,850 is growing as well. So it could pull the price up within the node. And that's why when you look at Thinkorswim, you'll see the price kinda doing this ranging thing. And then it'll hit a hotspot like right here and it will just kinda range around it. And then it gets enough volume and it pulls it down to the next hotspot. So long-winded, how do you do this? Don't try to time the market. I know you've probably heard that advice before. What I do is I look at the nodes. So look at volume node one and especially look at the volume and compare that to the other node if there is one, which there usually is. Let's scroll up here. So you can see that this volume is so much greater than this volume. Node one versus node two. So you know with all that volume behind it, the price is just gonna gravitate right towards that 38. Once it gets to the 38, that's when you start looking at these hotspots and this big red area is the node itself. The price is gonna range around inside this node. But it'll hit these hotspots and kinda gravitate around them. But it's always gonna look at that red line. What you wanna do basically is when you're confident in your trade, you want, let's say the price is here at this line, you want the price to move into your butterfly. So this would have been a beautiful trade earlier in the day because the price has been going down, down, down. Let's just zoom out here. So if we would have gotten into this trade right around here, it would have gone right down into our profit tent and we would be having steak dinner tonight. It would be, unless you're vegan, then you'd be having a really great salad but it would be awesome because the price would shoot right down into your profit tent and then you'd either be looking at pinning it or you would be looking at just taking your profits and running. When do you exit a butterfly? That is a tough question. Honestly, I usually don't exit a butterfly. There's a reason for that. So when you look at the chart, like today for example, wow, that is just snapping right down to that main node kind of in real time as I'm recording that just drop right down to that main node line. Let's say we put a butterfly here at 3860 and we did that because we thought the market was going to just rip up, right? 3860 right around here. We thought it was gonna go up and we were wrong. Well, your butterfly is going to live here at 3860 and the market is just going to abandon it. So really, it's a hard choice because if you're going to eject, you want to eject whether or not there's still profit on this magenta line. Otherwise, you're at full loss and there's just nothing you can do to get your money back. Again, never risk more than you can afford to lose. This is not financial advice. This is simply an indicator that I've created. So if you're going to eject, eject while there's still money, but sometimes let's say the price is gonna move back up. We're at 3800 right now. Let's say the price would move back up over here. It may actually drop back down. So people tend to throw these butterflies out there and forget about them until it hits profit. Ernie, for example, I know I'm talking about Ernie a lot because he really specializes in these butterflies. He'll do something called a Batman trade. Go out to his zero DTE YouTube channel, but he'll put multiple butterflies out so he can capture the profit at multiple points or all at once. It's actually kind of brilliant. So in short, understand your risk tolerance and never spend more than you can afford to lose. Remember, you have to spend money to get into a butterfly. That's why this is green. You're taking a debit. You're spending money. You're buying $470 worth of butterfly here. All right, let's recap the butterfly here. It is a directionally neutral trade, meaning we have to be within these little red lines. That's our break even. This blue thing is our profit tent. Here's, you see zero. That's the zero mark. So anything between these break evens is profit. Anything outside is loss. The magenta line is the time. So if we were to exit the trade and then the money was here, we'd be at negative 118. We're currently sitting pretty in the profit tent. Now, butterflies are lower risk to higher reward, but there's a catch as with everything with the market. You have to, I don't wanna say the word time, but you almost have to time these just right. And let me explain. If we look at the chart, it's been kind of a downward day and we're currently just hit a low of 3,800. Magic eight ball makes us almost unfair. So like if we zoom in for the day, you can see that it's been down trending all day. And if we go into magic eight ball, you can see that we've been thinking it's gonna be down trending all day. So like this is way up here. And you can see, we thought it was at 3,800. And it's been like gonna go down and then wham snaps back down. So fast forward, but this is where we are. It's at that 3,800 mark just like we said it would. That's what you wanna do with the butterfly. You want to capture the price moving into it. Let me explain. Let's go to our analyze. Let's say the price is here at this line. This is where you'd ideally wanna enter your butterfly or even over here. As long as it's at or near this zero mark. And then as the price moves, it would go into your profit tent. And that's when you would decide whether you want to write it to the end of day or if you wanna take your money and run. That being said, the market does not always cooperate. I want to just kind of throw that out there. This is not some all-knowing Oracle crystal ball thing. Let's just look at this day right over here. I'm going to zoom in and we're gonna go backwards in time. Yeah, this day right here sucked. I remember this. So the market was showing flat trending up and there was actually a node up here. And if you'd put your money on that node and then the Fed spoke, bam, it would have dropped down. You would have lost your money. And that's where risk management really comes into play here. What I'm trying to say is this is not some crystal ball, not some all-knowing Oracle. It just does a lot of math to tell us what's going on with the market, but it cannot predict what the Fed's going to do or if COVID's gonna come back or if we're going to war or anything like that. So definitely have risk management and an exit strategy. And profit is profit. Take your profit when you can. Now, days like today, we've been tracking on point pretty much all day. Now, what's gonna happen? I think it's gonna stay right around here but again, you never know. So if you're in a trade and you're not comfortable with what's gonna happen for the day, take your money and run. All right, let's talk about the iron condor here. So we're gonna go out to option strap and we're gonna build an iron condor. It is a directionally neutral trade similar to the iron butterfly, but well, actually not similar at all. You can see it has a similar structure in the sense that it does this, but it has this plateau up here. So it's a neutral trade, but once you hit this top part, you'll never make any more than that. So red is bad, green is good. If the price is down here where it max loss and then very rapidly shoots up into our profit area and then it caps off in this wide range here. Now this graphics a bit misleading. You can construct an iron condor like this, but it's not how we do it in Magic Ape Ball. So let's actually grab an iron condor in here. And this is actually probably a bad example. We may go backwards in time, but we're going to sell an iron condor and there's a strike, so you can just copy this. And let's go out to thinkorswim and let's delete the other one. Paste that in, get the best price, $55. Let's analyze this sucker. And you can see these iron condors are huge, but you have high risk, negative $955 to make $45. Restorward on these is horrible, but these things are so big, this price would have to really rip against you here. So what I do, and we're gonna set slices at break even, is I will actually set stop losses like this. So we're gonna get $45 credit. So I'll do like a two times loss. So I'm looking at this magenta down here in this box. So I'll follow this down and go 45, so that would be about right here around 90 bucks, bam. And then right here around 90 bucks. So I'm just gonna move this. I would set my stop losses, something like that. So if this price were to go down here, that's when I would just say, yep, I have a risk to my condor because I don't wanna lose this $1,000. Now you may be going, why would anybody do this? Well, condors are actually really good if you just wanna kind of, I hate the word set it and forget it, but if you wanna set it and kind of just sit it in the background, don't forget about it, but set it in the background. These will go all day long. And actually, if you're worried about the entry cost of getting into this system of $25 a month, I would tell you to do a condor. Go to SPX, go first thing in the morning, do a condor, and probably 99% of the time you will walk away a winner. The problem comes in is when it hits your stop loss, you're gonna have to worry about that. We're gonna talk about that in depth, but this is the general concept of an iron condor. It's a huge, huge range across the market. Low reward, high risk, but you have so much buffer between you and that risk, it's ridiculous. All right, iron condors are not perfect. They do come with risk. You have a lot of room that this price would have to travel. I mean, look at this, we're at 3,800. To lose this trade, the market would have to just completely plumb it down to 3,880. So we'd have to drop 20 points almost instantly in order to really lose our ass. Pardon my French, but it does happen. And that's why you do have to watch these and I cannot take credit for any of this. This is actually Tom over in Axe Options. Let's go into our education channel here. Axe Options, I cannot say enough. Good things about these folks. Arianne, Lulu, she's got some amazing videos. And if you just go out to Axe Options and sign up, these folks are professional traders. I'm in there 24 seven. Actually, that's the group right there. I'm not gonna click on it because I don't wanna give away their trade secrets, but these are the pros and I watch them all day long and I talk with them. I actually got a chat open with one of them right now. Tom, if you're watching your God, when it comes to condors, you really are. Thank you so much for showing me this technique. He does it slightly differently than the way I've got it in Magic 8 Ball. I tried to overly simplify it, but what you need to watch out for with condors is if this does rip against you because the market will shoot up or down. Remember COVID-19, anytime a Fed speaks about inflation. Yeah, if it moves against you and it starts testing your stops, you need to just buy or beware. It might be time to just cut your losses and go. You never, never, never want to run one of these to full loss because let me look at that. Negative $955 to make 45, it's just not worth running it to full loss. Let's talk about the rewards for an iron condor. Well, you can see the profit for these is minimal. I mean, $45, it's nothing, but this range is so huge. The market would have to really move against you. Honestly, I love condors because I, as a newbie, can just set the trade and then it will range around all day. And if it's going to hit my stop, it hits it way before I'm at max loss. So it's like I have time to exit this. Now, statistically within the system, these have been extremely, like we're talking 99 to 100% accurate where it will actually range and hit my stop and I'll go, oh no, and I'll eject the trade and then find out later it bounces back up and it would have been in full profit. But it's just me being overly cautious as a trader. The real rewards to this condor is that it is very newbie friendly. It gives you a lot of time to exit a trade unless the market does something completely crazy. So instead of having a huge loss, you would be able to choose when you wanna get out of here. All right, let's talk about when you would you enter an iron condor? Honestly, it doesn't really matter so much. I personally enter them first thing in the morning around 9.45 ish to 10 a.m. Eastern Standard Time. But as you've seen, you can just copy and paste. The problem is as the day goes on, this range actually shrinks. And what I mean by that is if I would have entered this first thing in the morning, it would have been a much bigger range. And let's actually go out to Magic A-Ball and let's look at that here. So let's scroll up. We may have to scroll up quite a ways here. So 12.19, 12.19, all right. Time is this, 13, 13, 12.40, let's just keep going up. 11.40, we're almost to the morning. These are in five minute increments. I wish there was like an easier way to get up in here. All right, so at 11 a.m. I put out a test message. Let's just take this guy right here. So we're going to, you know, so the premium is about the same, 55 bucks. But let's look at this range here. So we're going to get rid of that and we're going to put this out here. Well, yeah, now it would be way, way more. Shouldn't unlock that. Let's go back to 0.55 so we can see what that looks like. Let's analyze this. You can see it is a much bigger condor. It actually goes off the screen and I have to zoom out. So that's why I enter these really more in the mornings but this is the morning trade and you see how it would have blown past my stop here. What you need to understand is that when you get into it in the morning, this condor is much, much bigger. So you have this wider area to cover but you can absolutely get into it anytime. So for example, it is 1509 in the afternoon and let's just go out here. Let's go out to the newest prediction and let's grab this iron condor. It's only worth about 40 bucks but get rid of that, paste that in and let's analyze this trade. You see it's much smaller but that's because we have less room for the market to travel because the market's almost done for the day. So you can get into these anytime but really I do them first thing in the morning. That way I have a huge price range for that price to travel. Now let's talk about the iron condor exit strategy here. I'm gonna level with you. When iron condors go bad, it gets scary and it gets scary very, very fast. So if you enter an iron condor late in the afternoon and the market completely moves against you, you're gonna lose a lot of money very quickly. That's why, like I said in the entry, typically I'll get into a condor first thing in the morning and then let it run throughout the day. And I watch it. I don't just walk away because that's a fast way of losing all your money. Let's see here. Let's go 1040. Let's keep going up and up and up. I want a good entry point here. All right, so 1542, oops, we're in the wrong day. There we go. 1119 in the morning, here we go. Let's scroll up here. 1040-ish, I'm gonna go for about 10 a.m. This is honestly what I hate about this system is that you gotta kinda scroll up to kinda do any little history tracking here. Few more, we're almost there, I promise. All right, so here's 10 in the morning right here. Actually, right here's 10 in the morning. So 10 a.m. Eastern Standard Time. We're gonna grab this condor here. You see it was about 60 bucks. We're gonna grab this, copy. This is what I mean by getting an early benefit to you. You get a little bit more premium and you get a much wider range. So let's analyze this bad boy. Huge, absolutely huge condor. If I were to have set my stops, they would have been, they would have looked something like this. And this is the downside of this. As you see, it would have gone past my stop and I probably would have ejected the trade because I didn't want to lose the money. But because I got in early, you have this buffer zone where it would have been successful. So what I'll do is you see this magenta line? As it kind of creeps out throughout the day, I'll actually reset my stop. So full profit, 60 bucks. I would be a negative 120 would be where I would eject, which would be about right where this line is now. So that is where I'd hit the eject button. Is at two times premium. And you see, I've still got a bit of room. So even if this was a real trade and I got into this early in the morning and the price had just done nothing but crushed the market all day, I'd still have a little bit of safe zone and I'd still be in this trade. And likewise, the inverse is true as well. I would follow this magenta line and say negative 120, we're gonna be at about right there at 3881. So those would be about where my stops are. What I'm getting at here is in the morning, your stops would be much closer together. And the price would be about here. And then as time moves on, you see this profit curve kind of balloons out, starts filling it in. You're gonna move your profit, sorry, move your stop loss out as the day goes on. Now some people don't do that. They just automatically set them like 10 or 20 points from the edge and then they take that loss as it comes or they just write it till the end of day. Remember, never, ever, ever take max loss on a condor cause you will lose a ton of money to make very little. All right, let's recap on the iron condor. These are one of my favorite trades. They look big and scary in terms of loss but they're actually one of the safest ones I've found because this area is so huge. The market can completely move against you and you have plenty of time to react. So typically I'll enter a condor first thing in the morning we're talking about 945 10 AM Eastern Standard Time and it will be pretty much centered and then the price will go wherever the price is gonna go. Watch this magenta curve and I always move my stops out further and further. I personally do not go past a 2x loss meaning if I got into this trade I get a $60 premium so my loss that I would be able to absorb would be 120 bucks or two times 60 times two is 120. So I'll follow this pink line and when it hits 120, that's when I reject. So if the market dropped down to 37.97, I reject. Now you may go, wait a minute, isn't that what you said this was gonna do? Remember this is first thing in the morning so this is where we would have entered. This would have been our condor center right here right around 38.54 and it would be way down here. So we'd still be in profit here. Never ever ever and I know I've said this repeatedly never take a condor to max loss. Trust your stop losses, trust your intuition. If the market doesn't feel right it's not worth the 60 bucks or the 50 bucks to lose a thousand just it's not worth it. So statistically when I look at the logs from Magic Ape Ball, condors are the most accurate and it's because they have this gigantic range. All right, let's talk about verticals. These are the workhorse of the options trading world here. We're talking about put credit spreads and call credit spreads. So we're just gonna go to our intermediate here and we're gonna just take a bull put and look at this. So it's literally a light switch. You're either winning or you're losing. Red is bad, green is good and you can design these however you want. So in this case we were be here and we would think the market's going up. Notice how it's got a max profit and it has a max loss. These are what a lot of people enjoy doing and you can define this so it can go in either direction and you can define the risk tolerance as well. You see how that red line can get bigger or smaller depending on how we size these things. So these are tricky. They're tricky for a number of reasons. The biggest reason being the market can move against you very quickly. So if you enter and you're here and the market decides to tank, wham! You're automatically at max loss or it's just unrecoverable and it can get really, really challenging. So let's take a look at one of these inside Magic 8 Ball. We're gonna go down here. You'll notice that the premium is much higher here. So vertical credit spread with a directional bias. Let's go ahead and grab that bad boy. I wonder if we just, whoops. Let's go in here and paste. Yeah, you see it's only about 80 bucks now but we can analyze this trade over our risk profile and there we are. This is what it's gonna look like from a Magic 8 Ball's perspective. What it does is it takes our prediction and it goes out a few strikes to give us a little bit of padding here. So if the market dips down, we're not in loss. Remember, the magenta line is your friend. So we want this to be above our breakeven which in this case is 37.93. This does automatically in Magic 8 Ball pick the direction for you and add that padding so you don't have to figure any of that out. You can literally copy and paste the trade and you're good to go. You just have to watch it. Notice the way I'm doing it though, we have a $400 loss to a $85 reward probably because it's almost end of day and that's just the trade setup. Honestly, this is going to change throughout the day so take the trade that's right for you. All right, let's talk about risks. There's many risks with verticals. For example, if the market were to move against you, so if we were looking at say right here and we thought the market's just gonna rip up all day and we put a vertical saying it's gonna go up, we would have not won that trade. And meanwhile, if we were to enter here saying it's gonna go down, we'd win but the market could always spike back up. Verticals are I don't wanna say without risk but once you figure them out, they're actually pretty good. You'll see people will do these differently. Some people will do these right at the money so you have an even risk to reward. Some people will do them further in the money so you have higher reward to lower risk. This system is designed so it gives you a little bit of padding so if the market moves against you, you've got some time, see this magenta line, time to eject without taking a full loss. It's not perfect, it's a work in progress, I'll admit it. But the major risk is that the market moves against you. So in this case, I'm expecting it to stay above this 37.93 and if it doesn't, it just goes down. I need to figure out if I'm gonna run this to max loss or if I'm going to eject that to ex-profit. So for example, 85 is our max profit so we would be at about 160ish, if I can get it, about right in here. This is where I'd hit the eject button right at that line. Now let's talk about the rewards of a vertical. I mean, this is payday right here, so it depends. Sometimes you can ride these to expiration and sometimes you just wanna get it at this profit curve so you see how you're going to get a credit to get into this trade, $85. But as this goes up in the direction we want it to go, you can see how that number is increasing so you get additional money. So a lot of people don't ride these to expiration, they actually close them at a percentage, like they go for 50% profit. So in this case, it'd be about $41 to $45. I would just close it, take the profit and go. The major, major component to these is they can be very, very fast trades. I mean, if you get it when the market's moving, bang, you can make your money almost instantly and get out of the trade. How do you enter into a vertical? That is a good question. Let's look at this chart here. You see how the chart's all over. You can either play off these bounces. You can see how it's going down, but we know it's going to snap back up. Or you can do the long game where you know the price is going to go down because this red line, node one, is saying here. So you'll enter it here and then you would just make profit all the way down. It really depends. And honestly, this is something I've struggled with because I am not a professional options trader. Axe options, they're full of professional options traders. This is not a paid advertisement. I'm actually a member of this group. And it's phenomenal. And they really, especially Arianne and Joey and Heiney. I mean, there's many, many more, but I'm just the names that come off the top of my head. I could probably sit here for an hour. They're experts at this. And I kind of watch and learn what they're doing and how they do it. And they do different breakouts. And I don't want to give away all their secrets. They do have full courses. And she has an entire YouTube series out there. Just look up Axe options on YouTube. But when you look at the chart here, you'll take, and this is, I don't want to say industry standard, but there's a lot of people that do this where you have an open range breakout, which is you take like the first 15 or the first 20 or the first 30 minutes and what direction is it going to do? And it breaks in that direction. So you see, I'm looking down here. You see the time market starts at 9.30 and around 9.45-ish bang right here. Easier way to do it is just flip to say like 15 minute candles. And let's just zoom in on the day. So here's your first 15 minutes. You see, bang, it breaks down. So we think this is going to be a down day and sure enough today is a down day. So you would put in your vertical and then as it goes down, you make your profit. Sometimes it doesn't always work with you. And then there's also what's called the second breakout, which is around, I think around 10, 11 between lunchtime too. You see, it was going to break out again, but it didn't really work the way we expected it. And when went down, again, it depends on what you see in front of you and how you trade. And this is honestly one of the harder trades for me. I'm horrible at picking the direction. This is actually why I got magic eight ball up and running because I wanted to know where the price was going to go. So it's never tried to time the market, but look for different indicators. So for example, an open range breakout or a second breakout or a daily trend, those are really good indicators. And I always try to back that up with not just think or swim, but magic eight ball. Look at that main node that's going to track that price and it's just pulling it down like a magnet. So this would have been just perfect for a vertical right here first thing in the morning. It would have just captured all that profit. Now let's talk about exit strategy with verticals. This is hard. This is a really hard topic for me. So bear with me here. You put on a vertical and immediately the market moves against you. You have two choices. You can either ride it out and see if it's going to move back the direction you want or you can just cut your losses and go. I can't give you financial advice and to be honest, my style varies. My personal opinion, if I've got a good gut feeling the market's going to go where I think it's going to go, I'll stay actually with the trade. You'll notice though that magic eight ball is not perfect. Look at the chart here. It's been a downtrend all day, but the trade it suggested was, you guessed it, going against that. So we're trying to try to catch that. I hate using the expression catch a falling knife, but that's exactly what we're doing. The market's going down all day and we're trying to say, okay, it's not going to go down any further than this. That's the nature of credit spreads, honestly. If you did a different type of trade, you would have a vastly different result and you probably wouldn't have a good time. So like let's uncheck this and let's talk about what I'm, let's explain what I'm talking about here. So if we were trying to go in the direction of it, we would have to do it out here and we're going to sell this as a vertical and let's go ahead and analyze this. Oh, I got a condor now. There we go. Again, not a thinkorswim expert. It's been a down day, so we could just nail it here and then write it down. So again, I am not some options trading guru and unfortunately I have baked a lot of my personal flaws into the system and I did not want to put the trade system in there for this very reason. Future versions will try to fix this, but again, I'm just looking for the best way of doing a trade and collecting profit. Now, that being said, use common sense. If it just doesn't feel like a good trade, you can construct a trade on your own using magic eight balls and indicator. All right, let's recap on the vertical here. So a vertical is a directionally biased trade, meaning we're expecting it to go into a specific direction. We have this nice little curve here. This magenta line is our profit curve and typically what people will do is they will collect it at about 50% profit, they'll take their profits and run, but you can ride these all the way to expiration and if it goes against you, some people do, some people don't, I do not let this run to max loss. So I would take at about two times, meaning if I'm collecting $54 a premium or $55 a premium, I'll take $100, $110 loss. So on this profit curve, it would be about right here. That's where I'd pull the trigger and exit out. Some people don't do that though. And again, magic eight ball is not perfect. This has been a down day, but when we look at the trade that it kicked out, it said it's going to be above this price and it's trying to catch that falling knife. When in doubt, use common sense. So you could actually flip that trade around and do it like this. So you think it's just gonna stay below here and you're gonna make some money. If you don't trust the trades with magic eight ball, guess what? You don't have to take them. This is not a perfect system. And yes, I've seen some of these trades come out just completely ludicrous and I'm working on those bugs. But point being, use a node as the guide. So our primary node is 3,800. We're expecting this to stay at or above this. And how do we know? Because we have our expected soon, our short term, our close prediction, that blue dotted line. And then of course the red line here. Let's zoom in on that. So this is really gonna range today and we've got about 30 minutes left in the market. It's gonna range between 3,800 and about 3,807 and change. Probably expecting it to close around 3,805. Worst case, we've got some hot spots up here and this could rip up to one of these hot spots. And that's why magic eight ball predicted it was going to be above this guy right here. Because it has all this area it could range up to. It could immediately pull right up to this 3,820 if there's some news or some event that happens. But we said it's gonna be above this line right here. Because that's the edge of our node. We're not expecting the price to drop down below our volume node. All right, before we wrap this video up, I wanted to give a shout out to a few folks. You see I have this educational section down here in no specific order, let's just go through them. So there's AxeOptions, Arianne, she goes by Lulu. She's got some just amazing videos. And I'm a member of the AxeOptions group myself. I am not like getting paid for this. I'm just giving them a huge shout out because these folks are absolutely amazing. I'm in there asking questions all the time. Check out her YouTube channel. It's AxeOptions, you can go to about. And then join Axe, I'm in there. So I hope to see you in there as well. And then there's Ernie with his azerodte.com. Sorry, it's zerodte.com. He has got tons and tons of videos. And sometimes he'll have a live stream and I'll go out there and you'll see me actually in the chat window, say Magic8ball says 3,800 or whatever. And I try to compete with him. This dude's like a mad scientist. He's like crazy smart. I don't know if this software will ever be as good as he is, especially in terms of butterflies, but I'm hoping someday it gets to be just kind of where he is. I've actually been in his training before, the zerodte.com slash try. I've been in there before. Phenomenal service worth every penny. Ernie's actually in there as Traders of Futures right now. And then there's Trading Made Simple with Sandra. She's got her own Discord as well. Absolutely amazing. She's got this option Sandy in here. Cute dog, by the way. And then Tom with Aramir Training. And Tom's got his own little area in here, right there. Welcome Tom. Hope to see everybody in there and happy trading.