 Hello, everyone. My name is Brian and welcome to magic a ball version 94 First off, what is magic a ball? Well, it's this python application. You see on the screen It is designed from the ground up to predict the stock market Yes, I'm going to repeat that it's designed from the ground up to predict the stock market Go ahead take a deep breath roll your eyes. I do the same thing when somebody says they can predict anything Really, I've done a few videos in the past that detail this But I'm going to completely redo everything in this video from scratch because Goes to my second point version 94. I have completely deleted and rewritten this application from scratch 94 times and I've done that to answer the sole question that everybody's going to ask How accurate is it? Okay, that quite literally is the million dollar question. How accurate is magic a ball version 94? I'm glad you asked because I actually have notes this time. I've done this video before on version 92 I didn't want to add the trade system in and I don't want to waste your time So we're going to jump right into the numbers here. This is generating iron condors verticals These would be put credit spreads and call credit speds butterflies and broken butterflies If you don't know what any of that is I'm going to cover it later in the video Most people would put the section at the end of the video to try to force you to watch the entire thing I'm not going to do that So it's been tracking all of the trades that this thing has generated and version 94 got put into air quotes production on November 4th, 2022 This is still very much an alpha and special note. I Don't really care if it profited. I'm looking for expiration and kind of ignore like the risk reward probability These are things I'm still calculating The key here is did it expire in full profit? That's what I'm looking for here And here are the stats Broken down and ranked by expiration. We've got butterflies broken butterflies iron condors and verticals Iron condors these things are huge and again, if you don't know what these are, I'm going to cover them in depth later in the video But these are massive ranges that we start at the beginning of the day You can enter any time of the day, but I typically enter them in the beginning 94% of them have expired full profit. That's Insane, but remember iron condors are massive ranges. So the risk-to-reward ratio is pretty horrible Broken butterflies are directional bias and they have a 76% accuracy I Don't get a warm fuzzy feeling off this. I really don't I've struggled with the broken butterfly code I'm just admit it. I am working more on the prediction code And all of these trades kind of came in as an afterthought because everybody is like Well, I don't know how to trade this because I'm getting a lot of newer options traders Verticals again, these would be your calls and your puts. I should say you call credit spreads and you put credit spreads 68% accurate and butterflies 65% I don't really trust the butterfly The reason for that is I have been tweaking the size of these things butterflies are a range of biased and your profit depends on where it is in the range and we'll cover that in depth if it's confusing But just know that butterflies. I've been tweaking the size of those so I don't really trust that percentage. It's probably lower All right, so there it is Iron condor is 94% broken butterflies 76% verticals 68% and butterflies 65 What does this percentage mean? It means every single trade that this thing has kicked out I have been tracking and it is in this number So it doesn't matter if this iron condor was at 9 30 in the morning or 3 o'clock in the afternoon. It's in that number So that's pretty pretty actually astounding to me. This is way more accurate than previous versions so Let's dive in and look at How do you use it? That's gonna be the next thing. I think we really should cover So the next question is where do you find magic a ball? I mean, where do you download it? Do you install it? How does this work? Well, you don't download or install it. It's all online. So You go to something called discord and I'll put a link down below and I have a test server called void realms Huge disclaimer. I'm going to move this into a separate discord server that has a paid subscription model Details towards the end of this video, but right now it's in my development server called void realms Once you join you'll see this options traders channel. This is where just all the options traders are Wow, there's 186 people online right now. Where's everybody even finding this? Anyways You go all the way down to the bottom and there's magic a ball Click on this and this is what the software is generating Kind of scroll up here So you can see it is just generating all of these predictions So every five minutes it's kicking out a prediction. This is what the prediction looks like magic a ball prediction It's focused right now on spx zero DTE, but it is actually designed to do way more I can do SPY Apple Tesla Microsoft. I mean pretty much the whole S&P 500 and it can go out Way further than zero DTE. I've designed it so it can actually go out like 90 or even 120 days Obviously The closer to the zero DTE the more accurate it's going to be which is why I'm focused on spx zero DTE Then it has the current price a short-term target a predicted close and a long-term target These are a little confusing so Previous versions had well one number And everyone said I want to range so I took that number and broke it out into three different targets So you have short term long term and close Short term you can expect this soon how soon usually within five minutes to an hour A predicted close obviously this is our end of day and long term target assumes there was no market and the market just ran till midnight So what do these numbers really mean? Well, look at this right here where it says targets These are actually volume nodes and it kind of correlates with this chart. So you can see we've got a 4,000 A score and then a rate of change next to it So you can see there's multiple targets the stock market's always shifting And if I just pop this chart here, it gives you a better idea of what's going on Here's the volume nodes 4,000 is node one which is red and then we have node two over here at 3900 And then I put 345. There's way more. There's probably a dozen, but this is where the stock market wants to go Right now all signs are pointing towards node one at 4,000 and if we just flip into think or swim here Pull open a chart We're at about 3950 and change. I'm horrible with think or swim. So bear with me here So we think the market's going to go up How did we come to that conclusion? Well, let's go back here Looking at this chart. We've got short term predicted long term and I've got it graphed out here our predicted close is actually 39 79 95 or 39 80 that red line Let's just go ahead and map this out. I'm going to go to the newest one actually Yeah, you can see how the change is happening in real time here So let's just put all these on the chart here. So I'm going to copy. This is the short term This is what I do every day and this is why I made those charts Let's call this short term And let's put this here Make that nice and bold so everybody can see it So there's our short term target mean we're expecting 39 60 soon So we're expecting that price to pull up and you can see on the screen We got the TTM squeezes seeing it's down and rsi is also seeing it's down. So yes, we're expecting that to pull up Let's go back over to discord here. I'm just going to duplicate this This is our predicted close I'll make that just a different color And you can see the predicted closes even higher at 39 80 Now let's go in here And our long term target is 4000. Remember, this is assuming There's no end to the market. It's just going to run till midnight, but you see it also says possible before the end of the day Meaning this could jump up to 4k and then back down. I've seen that happen All right, so let's zoom this out. This is about what this looks like We've got the short term predicted close and long term You know it's predicted closes pretty much smack in the middle and that's usually the case sometimes It's offset by a dollar or two So we're going to expect this 39 60 soon So if you're just looking to make a quick buck you could put a put credit spread If we go back in here And I'll probably have to scroll up Yeah, here's the trades I actually did enter this And you see how it's doing this right here A put spread at 1.6 This is why I'm targeting expiration because when you paper trade The fills with paper trades are absolute crap. You see I put it in And it filled it at two So to offset that I will go here. I'll go analyze trade and then I will just 1.6 to see the actual profit Which we would be at about negative 24 dollars right now and as the day goes on I may Check back later to see if it's moved It will go up now if it goes to 4k We're going to be doing really good. We'll have 160 dollars at the end of the day This goes back to the accuracy at expiration that I showed you at the very beginning that spreadsheet This is what it's really tracking So what you can actually do is I designed this so you could actually go in here And just copy these so if I wanted to I could copy this Let's get rid of this guy And let's go to our orders And you can just paste it in Get this little lock to get the latest price. Well, it did actually move up to two bucks And then you could just simply confirm and send and that's true for all of these so like if for example We wanted to do this iron condor Doing this in real time is always risky. This is still an alpha development I'm waiting for something to just explode on me here, but Yeah, you can see this condor is 55 dollars and we can analyze this You can see this condor is just Completely huge There we go. Just kind of expand this out so you can see just the size of these condors This is why these condors have a 94 chance of success because they are so large but the risk to reward ratio is horrible But if I wanted to I could enter that as well All right, so that's the basic parts of it Now we need to understand how it really works All right, so we have our short term our predicted close and our long term remember short term We're expecting this soon predicted closes end of day long term as if the market had no No end it just went till midnight But we could see this go all the way up to 4,000 and but then it will start trailing back down Always verify this with whatever you use honestly I tend to switch indicators a lot just to verify the accuracy of the code But for example tpm squeeze is saying yep, this is down We're expecting it to pull up rsi. It's down should go up Everything's pointing this this should go up However, the market does not always Be kind to us and there's always a catch Notice this is at 3980 and change Let's go into our real time. This is already updated Scroll up a bit here So current 3942 and we see our long our long term has stayed the same That's pretty predictable Usually what we see is the long term stays the same and the short term and the close move towards it If this long term changes that means these targets these volume nodes have changed And this is where you have to really pay attention here Target one is 4,000. You notice that's our long term target. That's the main volume node And it has a score associated with it 47 It has a rate of change. It's changing very slowly, but you notice this 3920 It has a score of 36 And it's changing more rapidly actually very rapidly Almost half a percent each update. Let's scroll up here and see how much this is updated Notice node two used to be 3950 and had large change with a score of 29 So just in five minutes recording this video 3950 Absorbed a smaller node 3920 and became a larger node itself And we can see that represented in the chart. So if I pull this chart here There's our second node. Here's our first primary node, which isn't going to change You see how there's 3950 And then we get the updated chart and it is now dropped down here to 3920 and it's much larger What that tells me is that 4,000 actually at risk and this could drop down into the 3920 range So this really functions in multiple ways First you get real-time predictions Second you get kind of like a forecast of what's happening in the market and You get a trading system that you can literally just copy and paste I mean, I absolutely love the fact that I could just say hey if I want to just get this condor I can go in here And just pop it in Paste it unlock it to get the accurate price and then confirm and send if I really want to It's actually just that simple So the trick here and you can see our little vertical is now starting to start climbing into profit The trick here is the market does change and admittedly this is something that I'm working on Is I want some sort of warning system saying hey You know node 2 is going to overtake node 1 in a certain amount of time But yes, it's literally that simple you have to know Short-term prediction the predicted close long term and the nodes and then just simply watch the nodes Over time Assuming the market never changes You'll see short-term and predicted close start moving up towards the long term But if this long-term changes, let's say it's dropping down to 3920 You'll see predicted close and short-term kind of snap down to it Now that you understand the difference between the long-term predicted close short-term and how the volume nodes work How do you know which trade to enter? Well, that's a good question. Um, it's honestly this section is really built towards newbie options investors because I got super confused when I started doing this. So I just wanted to walk through this Some of you pros are probably just going to skip right over the section and that's fine If you go into magic eight ball You'll see what i'm generating here are iron condors verticals Which are of course put credit spreads or call credit spreads butterflies and broken butterflies. Well, how do you know which one to use? well They all work But it depends on your risk versus rewards. Let's walk through each one of these So i'm going to use what's called option strat just because it's visually stunning and let's look at an iron condor So you just go to option strat.com. We're going to go build it may take me a minute to find some of these But we're going to go iron condor Let's look at spx So this is an iron condor in all of its beauty And this is a bit misleading. This is not how the iron condors look in the system It looks more something like this Meaning you have this horrible risk to reward ratio and these things are large. I mean very large So you're making like 50 bucks, but you could lose a few thousand. I mean you see how it's like going down in the negative 10 grand um Yeah, iron condors are something that You have a horrible risk to reward, but you have so much range the market's not going to really move out of this That's why they have such a high degree of accuracy. So if we just go into magic eight ball here And let's just grab this iron condor You can see just the strikes here alone. This thing is huge Let's go into here I'm gonna go to analyze Uncheck all that so you don't see what my current trade is doing Uncheck that box analyze You can see this condor is just massive Now here's where the current price is This blue line represents at the end of day at expiration how much money you're gonna make and you see the numbers over here changing As I move so at the end of the day if the price was here, you'd lose about a grand But the price is here. So at the end of the day, you'd win 50 bucks I don't know about you, but 50 dollars risking a grand is a horrible risk to reward, but these things are so huge I mean even if the market rapidly swings You're fine. It's just gonna work Honestly, look at this. I don't know what this color is magenta line here That is your real time. So if it moved over here, you'd lose 150 bucks So the general rule of thumb that I was taught is You watch this pink magenta line and if you get two or three times your Premium meaning you're gonna get paid 50 dollars to get into this trade But if it goes down into like the negative 150 eject just close it take the loss and start a different trade Iron condors are typically first thing in the morning Meaning you'll enter these first thing in the morning and let it ride all day Because first thing in the morning these strikes are going to be further apart and as the day goes on That condor is going to shrink and shrink and shrink and shrink. So you've got a very narrow band Yeah, you don't want that you want a nice large condor All right, let's get rid of that Then let's flip in here verticals. These things are well pretty simple Let's go into option strat and we're going to do just a put spread Let's do spx These things are pretty simple. They're on or off meaning did it win did it lose? So you're you're taking a price here And saying I think it's going to be above a certain strike And if it is I win if it isn't I lose and you can design these For different risk-reward ratios You notice how now you can lose way more than you win. I mean you can design these pretty much any way you want But at its core here a vertical is just a light switch. Is it winning or is it losing? So this automatically does the calculations for you so you can just grab this guy Copy it unlock current price analyze And there it is is it winning is it losing? And you can see right on our theta decay It's going to start us pretty much at zero and then work its way up as it goes into profit And you can of course lose I am going to Play around with this in the future and make different types of strikes And how it's structured and things like that because I I don't think I found the key yet, but these are actually fairly accurate I want something that's like a hundred percent. I know I'll never get there, but that's what I want So verticals you can do Pretty much all day long and they have a pretty equal risk to reward like you're risking You know, I'm looking at this little box down here. You're risking 330 dollars to make 170 dollars so it's not bad now if this goes against you look at that magenta line here You can see how much you'd be losing So to get into this trade we're going to make 170 dollars And if the price shifts down too much I want to hit that eject button some people don't I'll just be honest some people just you know ride or die these things It boils down to your individual risk strategies and risk tolerance the butterflies Butterflies get confusing they get really confusing and admittedly I've struggled with this code Like you can see right here. This butterfly has a negative three premium Let's see what this might be a bug in my code here. Let's flip this over here and see what it's doing I don't know why I've had so much trouble butterflies. Yeah, see it actually wants a dollar for it So a butterfly looks like this where you have this This range and the closer you are to the dead center of the range the more money you're going to make But you can see how time gets a little weird that theta curve looks kind of crazy So typically what I'll do with butterflies is I will enter these Either early morning or late afternoon, but I've had really hit or miss results with these But you can see the risk to reward is amazing. I'm risking a hundred bucks to make about a thousand But statistically the odds are against you And then a broken butterfly This is Let's copy this A directionally biased butterfly say that five times real fast And let's analyze that trade and this is what I mean by directionally biased So You have our strikes down here And as that price moves up, we're expecting it to go around 3980. That would be our pin But if we were wrong and the price stays under we're still going to make money. Look at these numbers over here We're still going to make money. If it closed here, I'd make 75 bucks If it closed here, I'd make 500 bucks, but if it overshot, do you notice suddenly we'd lose a lot of money We'd lose like 425 dollars Again, each trade is different Your individual risk tolerance. I tend to favor iron condors and verticals every time I've tried a butterfly It hasn't gone in my favor and that's simply because I am not a professional options trader And I think my butterflies are shaped too small. Remember, you can make these things absolutely huge There is one I do want to test called the Jim Olson iron fly, which is an early day butterfly, which is mass I mean, it's huge It's like a hundred point butterfly kind of like an iron condor, but a butterfly just gigantic So that's how the trades are structured And again The way this is built right now, you'll kind of have to watch this. You can see as we've talked in real time The 3,900 node has absorbed the other nodes and become one giant node So what that tells me is our little trade is at risk here. So if I flip into my monitor, yep It's at negative 35 dollars And if I go to analyze, let's kind of doing this in real time Yes, this will start slipping off into bye-bye land The market's going to start dropping rather drastically. All these numbers have shifted. The indicators are also saying, uh-oh things are in trouble This brings me to my final point here is that magic eight ball actually acts as an early warning system You can see how 3,900 is way larger than the 4,000 node And we're going to see this start dropping rather rapidly It's at the peak of our short term. It's going to move towards 3920 So if this was a real trade Obviously, I didn't want to do a real trade while I was recording Yeah, it's going to start shooting down to 3920. You see it's already moving So I will just simply hit the eject button and just take the 45 dollar loss That actually kind of worked out in my favor because I was hoping it would do that So I could show you that it was an early warning system as well. So yay stock market for tanking all right The final critical component you need to understand on how to use this is well time What time do you enter now this comes with the disclaimer do not try to time the market You'll hear that repeat it and I'm going to repeat it to you again. Never try to time the market. However Certain trades work better at certain times of the day for example I will enter an iron condor first thing meaning either 945 or 10 a.m Usually closer to 945 eastern standard time Remember iron condors are that massive range And verticals I'll do those around 945 10 in the morning and 1 o'clock in the afternoon And butterflies I tend to try to do those end of day because butterflies can get crazy expensive So the closer you are to end of the day I think the cheaper they are but somebody in the comments will probably Correct me and say no, they're probably cheaper in the morning Again, I've struggled with butterflies. They've not been my friend How did I come up with these times? Well, first through just raw statistical analysis of the output of this program and talking to real professional options traders in the axe auction group I'll talk about acts at the very end of this video Really friendly group of traders and I've learned quite a bit from them But just watching them and mimicking what they're doing and putting that into the code is where I came up with these times What are my future plans for magic a ball? Well I don't know I haven't put a lot of thought into it I don't even know how much it's worth. I've had like I said a lot of marketing people come at me going Hey, dude, this is worth billions. Let me market this for you Obviously, they're looking for a paycheck themselves. I don't blame them But I don't want to go down that road just yet um So let's talk about what I do know I do know I want to move this to a dedicated discord server and charge a small very humble fee How much I don't know um let's go up here I look at this iron condor And I see that it's got a 45 dollar premium with a 94 chance of expiring in the money meaning This condor has a 94 chance of making you 45 dollars So if I charge say 25 dollars You have a 94 chance of making a small profit and paying for this tool meaning it pays for itself all in one trade And your risk because this condor is so big is actually fairly low And historically It's seen 94 success rate. So I'm logically trying to walk through this and maybe Sales marketing and logic don't all mix but that's what I'm looking at here is What is logical? What is fair? So I know this generates trades It has a charting system with some Early warning detection. You saw how I hit the eject button on that vertical earlier And some future forecasting. So like this 4k node grows it could actually bounce back up And it does this short term predicted and long term So it's pretty versatile and this is still in alpha. I mean, this isn't even really in full production yet And it's already starting off with all this Do me a favor either join the void realm server or put a comment down below and let me know what you think this is worth One thing I want to add to the paid version of this Is updated charts. I put a lot of work into this chart and it's great, but it's not perfect. So I've got a bunch of other charts And let's just Kind of scale this bear with me here So here the analyzers just shows you kind of internally what's going on inside of magic eight ball Here's the older prediction chart This is the prediction history and to me this is fascinating The red line is the price the green line is the long term And you can see this time frame is utc Around 1600 something magical happens and wham it snaps to the top node and you just have this beautiful straight line Again, this is from last friday shows you right where the price is going to go If the node changes like we saw earlier, this line will change and it will show you in real time where it's going to go We have the prediction chart you've been seeing an expanded version I'm not in love with this. It shows you the relative strength of each node The basic max paying calls versus puts with the market center A zoomed in prediction chart Sales this is volume minus open interest Volume nodes sideways and volume I want to do things like that just add a lot of extra value to this program How do you find updates on magic eight ball? Well, that's a good question You can always join my void realms discord server Again, this is a free server and I am going to move magic eight ball to a paid subscription server But I'll still keep talking about and probably developing it in here So you'll see a lot of the experimental features in here link down below You can also Look at my void realms youtube channel. I'm assuming you're there right now watching this very video And of course you can look at what's called ax options You've probably seen the icon over here ax options. They have a paid discord server as well Now I needed to find the two void realms is mine ax is theirs. I am a member of ax and these are professional traders um I am not being paid to tell you this. I am actually a member of their subscription That being said This is my review ax options is absolutely amazing Arianne's videos are pretty clear and concise now Sometimes I have to watch them multiple times because she is a professional options trader and I am Anything but I am not a professional options trader at all. I'm simply a developer trying to learn options um their group Has way way more than magic eight ball It's a huge group of people and they talk about all different trading strategies. They have questions and answers They have a whole education channel. They've even built a couple channels just for magic eight ball So that myself and other people can sit there and talk about this and the code and different strategies and things of that nature So a huge shout out to the folks at ax options to join ax You simply go to ax options and youtube go to about And then click the join ax link Again, that is a paid system. I am not being paid for this review I am a member of ax options, but I would highly recommend it Because I myself Am not a professional options trader and I will not be able to answer a lot of your questions I am solely focused on Updating magic eight ball and speaking of updates Looks like it updated again Oh, I knew that 4k node was going to go. Look at that. I should have got my vertical anyways, um, see if I bet you if I flip into ax somebody's going to be going bro You should have kept that vertical because we knew the 4k node was going to jump up All right, that is one massive node More updates coming soon. I'll make videos as I can but of course developing this and having a full-time job and Working my butt off on other things, you know updates are kind of slow But do me a favor pop into the void realms discord server It's free of charge And just say hi and let me know what you think of this and if you have any thoughts on how much I should charge for this Again, I want this to be fair and equitable for everyone Hope to see you there