Tracking the Correlations on Your Metastock Charts

Okay, welcome guys to the tracking the correlations on your charts coaching session. Now, one of the key aspects of trading the markets is really sort of lining up the correlations to take advantage of moves that haven't occurred yet or have occurred, but we've missed the main instrument and we may get the secondary move on an instrument that correlates with the main instrument itself. And one thing that you can do, and this is maybe not necessarily associated with today's CPI numbers. Say, for instance, Euro takes off one way or the other based on if it's Euro news, looking at the correlations, obviously, on the Euro crosses can be a great way to get into a trade that hasn't yet broken down or up to go with that same move. All right. Now, let's just come into your charts, right? And, you know, I always go through the process of looking through the charts, checking out what's going on. Obviously, start of a new day has just happened. Rollover of 5 p.m. New York. You look at the markets. Okay, got beaten up there last night, that's for sure. And then you're like, okay, where I can sort of really point you in the right direction is looking at how to do it on your charts. And what we can do is, and I've got a couple of different examples here of the oil trade right and you'd be surprised that once you start doing putting some of these other instruments on your charts how much uh a lot of the a lot of various instruments um do correlate now generally speaking and that there's some instruments that have a massive correlation and others that are sort of moderate now if we are looking at um if i want to get some some more information on this if i type into uh the oracle here we're gonna on say forex correlations it should take us to a section of the website oh here we go of the courses where well it's actually going back to vimeo which is a bit of a crazy thing it should do i'll have to get that tuned up so then what you're doing is you're basically coming in it's in the quick start guide there Now, let me just show you the practical aspects because you're looking at, say, the major currency pairs, just geographically. These four instruments here at the bottom correlate very high, at least in the high 80s, if not 90s. These two, because they're right next to each other, correlate about 95% of the time, maybe even 98. Same with Aussie and Kiwi. They correlate sort of say about 98% or thereabouts of 95 to 98. And then you go, okay, these four as a group generally correlate say about 85 to 90%. So it's probably on the 90% side. So what you can do there is you can actually sort of put a few things into play, right? So for instance, Aussie, I mean, this is not a great example because of the clean out today, but say the Aussie had broken higher, right? and we're looking at the Kiwi. Well, what traders could do is if the Aussie's already gone, we know the Kiwi's going to go with it. It's just a matter of when. And it's usually around the break of the trend line, right? So what you can be doing just to see how they look is overlay the Kiwi on the Aussie so you can see how closely are they correlating at the moment, just to get that extra layer of confidence that you're on the right money. Now, how would I do that? Well, this is a uh pretty simple approach this uh so we've got the aussie here now what you want to do if you come up to compare right up here at the top now i could what what you can do for this is you can either change if i click on the Aussie bars right, I can either change change that to a line chart and just keep it like that so I've got the Aussie and you know what just so I know um which one's which I'm going to change that to uh green hit okay then if I come up here to compare I can just type in Kiwi the Kiwi you know in the uh All Blacks and all let's give them that and then you can start to sort of see how closely are these two instruments correlating now one thing you would recognize and this is where you get a bit more knowledge about the markets See how the Kiwi's overshot here a bit further? There's less liquidity in the Kiwi. So when it gets going, it actually moves more. But you can see very clearly that, you know, blind Freddie could see the fact is these two instruments correlate like almost pip for pip. And that is the case. When does the correlation break down? Usually around either Aussie or Kiwi inflation numbers or interest rate decisions in particular. That's where you'll see some disparity. Otherwise, these two work together in unison. So that's well and good. What you can be doing, and this is what we used to do in the past, is if the Aussie broke higher through a key level and it was correlating, we probably sometimes wouldn't even wait for the Kiwi to break through the resistance level, we would just buy Kiwi straight away. So let me just sort of take it back one step. So on a trading desk, there's 20 or 30 traders, right? Each trader is assigned a currency pair, right? Usually there's one guy, say, doing the Euro crosses, but you've got a guy doing Euro, you've got a guy trading sterling. And so any client requirements or anything, any trading goes through that one trader now i used to sit next to a guy he was a kiwi and all the aussie numbers right so the aussie employment numbers for example which are coming out today would come out exceptionally strong he would be buying kiwi at the exact time that the aussie numbers came out now what that might do is the main action is on the on the aussie right so all the attention's there. What you can do is get onto some of the correlations and actually buy those instead of trading the main game, which may be a little bit more volatile, right? You can actually get into the Kiwi at a better level than what you could trying to get into the Aussie after the employment numbers, right? So basically, you're a pseudo-Aussie trader trading the Kiwi, right? Does that make sense to you guys? Yes, Brad. I get where you're coming from. I mean, they move similar, but they do sometimes move apart. Yeah, they move apart generally on when interest rates change and there's disparity with the numbers, right, because they're so close that that's what happens. So now let's come over to the oil trade because this is like a real thing that you could be looking at. Now, when we're talking about the oil trade, we're talking about, well, there's CAD, there's oil, there's dollar yen, and then you put those two together, then you've got CAD yen, right? And this is obviously why I'm focusing on oil is oil has got the biggest correlation with any instrument with CAD, with the Canadian dollar, right? And obviously it's a prime target because this whole Iran issue is all about oil, and we know the disruption that's had with global markets, interest rates, central banks, like Trump. Give us a break. Okay, so what are we doing here? There's a couple of things. So the same way we compare when you came back here to the Aussie and Kiwi, right, it's a straight like for like, right, with those two. Now, when you come back to oil, we have to sort of consider, because of the way different instruments are quoted, how we set these up. Now, what we've got is we've got oil, like I said, we've got dollar CAD, right, which is the bar chart. Let me just blow this up and I'll bring these four into perspective. So if you just go and compare CAD and oil, so I've got that set up, and then I look at what's going on here. So on my y-axis here, I've got oil going up here and dollar CAD going up, but this is US dollar CAD, now oil and CAD. So if I need to get the correlation, see how the correlation is with the instrument, which as the major pair, dollar CAD, I've got to invert oil or I've got to invert the CAD price. I usually invert the oil price. So if I right click on this axis over here on the left, just hit invert scale. Now, what that does is it changes oil. So when it goes down, it's actually the price is going up, right? That means if the US dollar goes down, the Canadian dollar is getting stronger. Right. That's that's what we're sort of talking about. So this is one way to see very clearly, you know, and one other one of the key part, even coming back to the majors. Right. Euro and sterling. Very high correlation. Aussie and Kiwi. Very high correlation. Oil and CAD. Very high correlation. But sometimes like where there's geopolitical events or economic numbers. Right. We've got those strong US numbers, right? That's, you know, US dollar going up, CAD getting weaker, but the oil price is actually getting stronger. So that's a breakdown in the correlation. So the correlations themselves, and this is the important part, you can get so hooked up on correlations that you become a correlation junkie and you think every move is going to be counterintuitive with the next move. But if there's geopolitical events and there's other things happening, the correlations can break down very quickly. Like this at the moment, there's no real sort of move here or like this is an anomaly, US CPI numbers. You can almost say, yeah, the correlation is coming back into play. The US dollar is falling, CAD is going up, and that's where we are. So what I would be doing in this situation is looking at where dollar CAD is, and you may hear me say this on the videos. I'm like, okay, so say the dollar's up here and oil's down here, right? So oil's rallying and dollar CAD's rallying. So stronger dollar, weaker CAD doesn't line up. I will always say something's got to give here. Either oil's got to start going up or dollar CAD's got to come down or a bit of both. That's what happens. So sometimes you see that, you know, like, yeah, well, that's a bloody, that's too hard, right? Don't forget, we're looking for easy trades so when you can come back into this and you can actually so there's a number of different ways to um plot this right so what you can be doing with your charts is once you've got the correlations up is actually start drawing some support and resistance lines on on both or either or now what i mean by that is you can actually draw okay support and resistance levels on both of these things i might have to go into the line to get that thing going um because what you can do say for example is what i'm trying to get at is you can draw trend lines on oil for example and that's not a good trend line okay so say for example that started breaking up which would mean a weaker oil price okay so that means a weaker cad and then you get the strong then you then you get the dollar move so when oil breaks you just go and buy dollar CAD right so that's that's one way to sort of do it this is what the guys are doing actively all the time in the banks they're actually pre pre like almost it's a riskier trade because you're you're not we're not sort of too worried about it say for instance like dollar CAD at the moment is at a level where it's sort of drifting sideways all over the shop this oil is if oil was the main driver and it's not just at the moment. As soon as that broke through that level, right? If I wasn't even trading oil, I would just go in and buy dollar CAD regardless of where it is, right? Obviously, the smart play is if oil was breaking through a level on the top side, right? So that was resistance and oil was falling, then you've got a great level to be getting in. You can start to see where you can reduce your overall risk on the event. Now, so you've got dollar CAD, right? Let's get, and you're drawing trend lines on all of these things. So this is the best part about it, right? And the liquidity, et cetera, on oil can be problematic, like most things, right? But say, for example, if I just get, so what I'm saying is you can actually trade instruments, other instruments that do correlate with the main instrument that's breaking. say, for example, we know that liquidity on oil can disappear and reappear, but if it's going up and it's going up aggressively, I don't need to necessarily get into oil. I use this instrument and I trade the correlations around that. So if oil was moving aggressively, the CAD crosses. You get into the CAD crosses and you can actually put the oil price on those and actually go and find the instruments that's doing that same with the yen right but let me just come back into the don't forget like when when so working in the banks for almost 20 years you're there from like a lot of the time from 6 a.m or 7 a.m at the latest till at least 5 p.m right in london it was six till six almost it was actually like it was so draining but um and because you're there all day you start looking at this stuff a lot closer right so like a sterling CAD any of these CADs right if we're looking at this you just come up compare just type in the oil code okay so now this is obviously sterling cat is like dollar cat right so that's going up so if i just hit invert then you can start to sort of see if you blow these things up you'll start to find you know most of the CAD crosses will correlate, right? Obviously with oil. And that's one of the key things. So what you can be doing is understanding the correlations can broaden the horizon for your trading opportunities around oil, okay? If it is sort of moving here or there, then you can actually start to get into, okay, which one of these suckers is really the one I need to be looking at? And you can see where, say, the correlations are breaking down, obviously on economic big economic numbers you're going to get that instant disparity but then the correlations will come back together very quickly right same with euro and sterling if they break down right it's only for usually like a day or so and then they're back online back together right that's that's the way these things work so um so you've got oil like dollar CAD you're sort of tracking the oil price there i'm looking at that going okay that's going up then you can start predicting where things are going to move dollar yen okay like if you go through the courses you'll you'll work out very quickly japan doesn't have much oil at all right they're a massive oil importer for energy so if oil goes up it costs them more the yen goes down right so it's a natural sort of correlation here as the price goes up so does the dollar and the yen goes down okay that's but see this is once again if there's no news and there's no weird things happening these correlations work extremely closely right and extremely well if there's other sort of like this we know there's a lot of weird stuff around oil and Trump and like it just annoys me every time i mention it but the so like you can see oil uh falling here but um dollar yen didn't right it's yeah because there's other things pulling oil apart, right? And then once that news simmers, then the correlations go back into play. So this is all about trying to work out, say you're about to trade an instrument, you could be looking at, say this, or the beast, and going, okay, how's the correlation? Yeah, yeah, it's pretty tight here. And then all of a sudden, you're thinking, I'll get long dollar yen, but then the oil price falls and it disrupts the correlation. So you're like, you know what? probabilities i don't like it i don't like the fact that these two aren't back on then over the course of a couple of days that stops and then it starts correlating again right so this is once again like take the correlations basically with the grain of salt and then add some knowledge into it now CAD Yen right this is your natural uh instrument for oil right and what can happen is because the market knows it, they can actually get caught up in it too often. And you can see flush outs of this, right? Oil falling here, right? CAD Yen didn't do anything. And you're like, wow, that was messed up. But then, obviously, that would be a news event. Then you get it back correlating, right? So if you're trading oil, you just have CAD Yen and oil on your charts. I mean, This is what the commodity guys were doing all the time. They're just sort of sitting there going, oh, yeah, yeah, we're looking good, looking good. Like the ideal situation, as I said, trending markets, like most instruments, easy to trade. If we've got a trending market, putting the correlation on your charts is a probability enhancer, right? So that's what we can be doing with those things. You can actually put the stochastics for oil. You should be able to put that on your charts as well. um i haven't actually done it there but so this is the thing right so you guys let me just show you this again right so you've got dollar can i just ask one question because i'm not picking up what you're putting down here are we trying to use you mentioned correlation we understand that's going together are we wanting them to go together or we actually wanting them to be going apart for the trade okay for the trade you want them to be you you're trying to use them together right so you would be what you want them to work with each other when the correlations are strong means you've got good really good trading conditions and you've got the natural flow right so that's telling us that there that there's you know look solid trending environment is what you're trying to drive at here yes and say for instance one thing's anchored to the other while it's anchored to each other than that whatever we've got to learn which one correlates with uh yeah which is the opposite to it i guess so we're looking for correlation here oil and CAD going together so that that says that everything's working in a strong trend in unison the CAD yes so now we're looking for the opposite to that, aren't we, for the trade? So if you see the opposite happening, it's a warning that something isn't right, okay? Now, get that part. I'm pretty sure we get that part. Okay. Where is this? This is just giving us confirmation. Is that what you're trying to drive at here? It's giving us confirmation, but it also can be a step further. Say, for instance, oil here, right, starts to keep moving higher, and the correlation here is pretty strong at the moment. what that could be is a preemptive strike on getting ready so like so a lot of the time right think of it as like an indicator this is telling us that oil is going up with the correlations and the way these instruments behave dollar yen should go up so what and if it's breaking through a level it's it's a real indication that the next move on dollar yen is top side right so you're using the correlations as as an indicator like you do with all various indicators that you can put on your charts yep does it make sense it's getting yeah i'm pretty sure i'm picking up what you're putting down i'm just not quite sure now how you could use this to do the uh strength and weakness part of it you know one up one down like this is all about seeing whether going in the right direction now i get that part now but how do we reverse this around as a strength and weakness tool yeah well it's basically like if you came in and i mean you could go into each instrument right so let me just come back into these ones okay so the okay let me just come over here because you can actually do this on your main charts let's just go into CAD yen where you've got okay no surprise i've got CAD yen i actually haven't looked at this this one here but what you would do is have have both on here and so you've got so if you're looking at CAD yen right and there's a couple of different ways obviously you could come back straight into uh CAD and come down to CAD yen see it's it's a bit mixed right now what you would do is the same with oil Brent crude and you can see it's you know short term going up or West Texas Intermediate the um so you're looking at the strength and weakness of those things really the you're going to get obviously a cleaner indication of strength or the overall move on the daily charts i just don't want to lose my train of thought here otherwise i'll lose my marbles the um so what you're doing is kev you You're really looking at, say, the instrument you are trading, like, say, oil, which is usually the indicator, right, of what's going on. That's going up in this situation. CAD Yen has gone down a little bit, and I would be focusing on the instrument that I'm actually trading for that. Now, so what I'm saying is I'm looking at CAD Yen strength and weakness, okay, where it is momentum wise looking at the instrument i would be trading as opposed to the the indicator but i'm pretty sure if i should be able to get the stochastics up for this thing because then you can actually sort of put both stochastics next to each other and you can actually see when they both correlate obviously you're like well that looks pretty sexy um let Let me just double-click. It's one of those things. When I get it up, I can never get it off. And then when you want it. Stop talking about your personal life, mate. Oh, I know. Go back to talking about Trump. Oh, my God. It makes me feel sick in the belly. I've got to say, it really does. I'm like, he's just a nuisance, right? So basically the correlations, Rob, one thing we're trying to do is, And this is where you come back to, say, this page and you go, well, I can see what's happening here, Brad. The yen's going up against most things. It's going down against the dollar. You can see what the correlations are doing here inside the crosses. Then you can come back. We look at commodity currencies, for example, Aussie, Kiwi, CAD, the commodity currencies themselves, what you can be doing. So this is where you look at this and where you change your focus, right, is you come back into the screen. Usually the news will tell us exactly where the focus is in the market, okay? At the moment, it's going to be about inflation, these sorts of things. A lot of the times, like we've seen bonds being in there at some stage. Other times you'll see it's a commodity issue, like oil is usually the biggest issue, and then you can come back and look at that. And we usually target oil, obviously, with the cat, right? But it's quite often the commodities themselves will be the issue. And then you're looking at, say, Aussie, Kiwi and oil. And then you start, especially with the Aussie, right? It's a massive commodity currency, iron ore, et cetera. You can start to say, well, if there's pressure on some of these commodities, then that's going to be a direct impact on the Aussie. So then you start experimenting and putting gold or silver or copper or iron ore on your chart just to see is there any sort of correlation there between those pairs. All you're looking to do with correlations, right, is get an edge on where direction in the next move is going to come from. That's probably the easiest explanation. You're looking for that little bit of edge because if you get too deep into the correlations. You're talking about it's called power in numbers, which is, you know, you've got two, three lots of numbers travelling in the same direction, it's going to have a lot more power against it than just one floating around. I mean, you often see it charts ahead and you're never quite sure whether it's going to keep it up or not. You know, a good example is retrace. Is it going to retrace back and then push back? Well, that's where I would be sort of looking at. This correlation business is probably a good example. Yeah, that's right. That's where I would be looking at, you know, the general, yeah, the general strength of the actual instrument has to come into play. All we're looking for is the direction from the lead instrument and then you're looking for the strength or weakness in the one you're trading. I'm telling you that the guys at the banks used to get, like it's not their cash, right, and they're under pressure to sort of make money, so they would actually just go in and pre-empt it, and quite often it probably costs them cash. So there's two ways. If you're super aggressive, then that's what you want to be doing. Let me just come into here. Brett, can I just ask, why is it that we invert the oil one, but I noticed we didn't invert New Zealand Aussie? Okay, because, anyone want to answer that? Well, they are of the same currency, where the oil is the opposite to push the other one the other way. Yeah, Jase, it's basically the way they're quoted, right? So Aussie is quoted naturally globally, Aussie US, Kiwi US, right? when we talk about dollar CAD you think they would have just done this like a hundred years ago and just made them all the same the same way quoted the same way dollar CAD is quoted as dollar CAD, so we have to invert it to get the CAD um get the impact on the CAD visually that's how it makes sense yeah it's it's a minute and that's the thing is a mind bender that damn thing it's a pity they didn't just go ahead and damn well do it because i know um but yeah mate we've like The guys have been talking about this for 35, 40 years, going, just make it easy. Just make it like either US. So pre-euro, right, it was US dollar against the Deutschmark, right? So that used to work quite well. See, then you've got dollar yen, dollar Deutschmark, dollar CAD, dollar Swiss, you know? And then all of a sudden, no, we're going to change it around the other way. Euro, I think the euro people wanted euro first as like a thing. We're stronger than the US sort of thing. Oh, my God. Yeah, that's what it'll be, right? You got it. Because that would be so easy. And you know what? When you talk about that, why is trading the yen crosses so easy? Because they are all quoted the exact same way, right? That's the thing, right? You're like, so when the yen crosses move, they all move the same direction because they're all quoted. Aussie yen, Kiwi yen, CAD yen, dollar yen, sterling yen. You know what I mean? These things. So when you look at the correlation, you can actually use these as correlations, right? and this is actually just looking you can obviously throw oil in there but if i looked at all the crosses here on dollar yen i would be looking if there's a big if there's a move happening on the yen i would be looking across the board here and going okay so kiwi's broken down okay cad yen not yet euro yen's broken down still in okay that's broken down okay this sucker here has not broken down yet i would be focusing on this and maybe cad yen but see cad yen's caught up in the whole oil issue so if you're looking for a breakdown in the yen crosses you're like just under this is where the knowledge comes in you're like yeah but oil's going up that that messes that up so take that off the table so then i would be looking at that and going okay aussie yen's the one right it's massively overbought everything's breaking down except Aussie, right? So that's where I would be sort of focusing attention. And if we get the right numbers today, then that would be your trade. Then the numbers will be we're looking for a weaker Is that right? Weaker Aussie? Yep. Push down? Yeah. So less numbers that are less. That's exactly right. And what you can be doing, not only sort of looking for the breakdown, like breaking down through the cloud is one thing. That's the itchy barn strategy. But then you've got a trend line here. you're like okay everything's breaking down this one hasn't and it's overbought like it's you know what i mean you can use the correlation so that correlation between those other yen crosses and aussie yen does not move on its own as in if all these other things are under pressure it will come under pressure and catch up so you don't have to sort of freak out you can actually place an order below here and just go well my job's done right because you look at these and You're like, well, okay, all these other ones are a bit overcooked at the moment. You're like, yeah, that's good. That's good because that means they'll come up a little bit. It doesn't mean they'll rally back up to the highs, but that'll give it enough. We get weaker Aussie numbers and then everything starts coming off again. This is, with the yen crosses, one of the big problems, and you said it, Kev, bloody Trump, right? If he gets his head out of, like their head is in Japan's business, making them raise interest rates when they don't want to um and then you got oil and then you're like how about the yen crosses these things usually give up a lot of cash and then you look at the price action here this stuff here is mental right it's not really going anywhere everyone gets pumped as soon as it sort of drops and then you're like okay maybe this thing is just tracking sideways and then all of a sudden the beast which is the yen just takes off either down or up it's it's the one fx instrument it's the best trending instrument when it's trending and it's the most violent and aggressive and unpredictable so that's but this is like in in asia the casino is sterling yen like the asians love it and i'm not talking just about japan i'm talking across asia it has big ranges it's violent it's aggressive and that's where everyone loses their cash, right? Sterling yen The brokers love it, right? Because there's a huge turnover and you come back the next day and it's like rolling the dice again. So you're not looking to roll the dice here. We're looking for either a breakdown through the Ichiban or through the Ichimoku cloud. And so with the correlations, what this is going to do is it's going to tie in a little bit more knowledge around just general technical analysis because you're like, yeah okay i got the correlations right but where's the best place to get in well it's still around technical levels like so we're looking for aussie yen to break down and i know this is sterling yen but you can see here like once again like see it see the price action here when you see that you're like holy ---- the whole market was looking at that trend line because it's it's broken down tested come back it hasn't gone back above there right so you're like that is confirmation that that is a good that is in play so then you so you look across the board if you went across the board and did all the trend lines here on your charts then you can sort of piece together and say well all the yen crosses correlate because they're all quoted the same way obviously aussie may have a higher perception of interest rates or whatever it might be that is going to catch up if they break down aussie will not sit there it will catch up and slide and once it breaks down through the levels it'll take off and catch up it's funny right because you can see instruments sort of go like say 70 points or 80 points and this thing goes about 20 and you're like oh man it just won't go then this thing will go another 10 and all of a sudden this thing drops 50 it catches up to where the others are that's how these these things work right yeah so because what i like just using like i mean i was going to say like oil usually right it's a supply and demand issue at the moment it's a geopolitical tool so it's harder to determine um whether these things go up or down um so yeah we invert oil price uh on here or if you're like a you want to see it the other way you can just come over and invert dollar cad right that's that's cad us dollar now and that's you can sort of see where that is. And check this out. This is something, right? So oil has been, was falling. Now it's starting to rally. I don't see any news about more bombs dropping. Do you guys? I don't know why oil keeps going up. But then you look at the price. No, there's bombs flapping around in Saudi Arabia. They're talking about Saudi Arabia. Yeah, somewhere there. Yeah. So see how that's gone up, right? If oil kept on going up, well, we've got a trend line here and it's coming back. We've had the dollar move and now it's coming back. So this could actually be a nice, easy move. If we get that chiming in with a move there on the stochastic strength of weakness, and then that's where you are. This is where I like to come back and I'm like, I always look at the instruments the way they are. It sort of always confuses me if I do it the other way around. But this is where you guys, as I said, you can actually start, If you're sitting there, right, and I'm not talking about just sitting there watching the numbers and watching your positions, that's not conducive to being relaxed and just letting it hit your levels. But if you are sitting there and you've got your charts up and there's not much going on, put some music on and just start looking, like the dollar index is a good one or dollar Swiss, Swissie being so neutral, is start overlaying different things against it just to see, like just to see what's going on. Like if I come into like the equity indices, right? If I come up here, I've got oil against NASDAQ. And you can sort of see what's going on there. Like, wow, that's pretty tight. Over here, I've got just having a look at what's going on here. I was looking at Bitcoin, right? Because there's a lot of money going into Bitcoin these days as a safe haven. Like people, and I'm talking big investors, are parking cash there. They're a bit more confident these days about it not collapsing. which is you'd be shitting yourself if you had, you know, a couple of bill in it. You don't understand the cycles of crypto to understand all that. It's fascinating, the cycles on that damn stuff. It is. And so look at this. We're at the bottom end right now. Yeah, I've been looking at this going, yeah, the correlation there doesn't matter. So I'm like, I'm taking that off. So that's what I mean. Have a play with it and start to get a feel. Like the Yen Cross example is probably a good one where these all trade the same way. these like these other instruments act as the correlation tool and this is the same thing so you see guys if say it's um euro takes off right stronger euro numbers yeah you'll get some move into the euro sterling but sterling will go with it won't go as far as the main instrument but it will go and you know what these two correlate with it as well they will go and This is the natural flow of the correlations, okay? Can I just mention something here? This is off the cuff, but you take it for what it is. Yesterday, I've been studying a lot the AI stuff. You call it, you won't want to hear this, Brad, but it's called AI now for some reason. What's it called? AI. Oh, yeah. Your good mate named it AI. Yeah, I know. I know. How is that? Anyway, I've been learning. there's there's lots of good ---- we've got you you we've got to get our heads in this game because if i told you right now last night i only come across this so i can't give you much i linked this is through Claude i linked it to a particular website and you don't need i'm going to go straight after i'm finished here and link the charts in this fashion that you're talking about you don't need charts in front of you this thing tells you right off the bat so you can ask get to do the investigation right across the board all takes super one minute and it gives you the report now what we've got to do is understand uh just all we have to understand is how to give it the prompts you never have to give it another prompt so right now it so there is an apparently forex is 101 uh with what they're doing okay and i've been into it in the crypto side uh doing liquidity pools yeah select liquidity pool in milliseconds uh blah blah blah that's uh where i got to know this and i just need to convert this now across to the forex side and apparently it's already been done so all i'm saying is you've got intelligence inside of uh your SI that can do this in milliseconds for you at a whim and we've just got to learn how to program the thing up the guy i've been in touch with knows how to program he did it all on for his site it's just amazing um so anyway i just want to put that out that we've got to focus in i believe you've got to focus in this direction there's a lot of good stuff come out of your mouth since i've been talking to you in the last few months a lot of information we just got to grab that and just get it to be autoed up because you know you got 30 years you're not going to get into my brain in any more than probably three years, if you know what I mean. But we can get it into my brain. I don't have to get it into my brain. Why are we getting it into our brain when we've got a super intelligence brain? I'll make that point loud and clear. If a computer can do it, why the **** are we doing it? Does it make sense? Yeah, it does. Use your skills in the plod department is where I'm trying to put, because all this stuff you're talking about today makes a hell of a lot of sense, and you've got the knowledge. You just go and find that person who understands how to put prompts in, et cetera. It's pretty simple. You can just talk to this bloody thing and do what you want it to do, but you've got to get it programmed. And this is the core thing that this bloke said to me. You've got to tell it what not to do, more importantly than telling it what to do. Do not go over here. If oil is going this way, do not go over there and look at that. And you've got all this intelligence. You've got it at your fingertips, Mr. Brad. You just need to grab this thing and get somebody that understands how to program this stuff, okay? Yeah, yeah. That's my thing back to you. No, no. Well, I'm all into the SI and for research and analysis, 100%. Outside of getting liquidity numbers, impossible. That is impossible because no banks share their liquidity. No one shares their volume. It's all in-house. but research and analysis it can tell you yeah this one here but then it doesn't tell you what the impact of the geopolitical stuff is going to be it um it's also factored into the price right and i agree like it's a it's a massive uh help it's like having a team of traders with you it's just a big fat tool that's all it is oh yeah why are we glaring at why are we trying to we need to then how to how to read the report that's what we need to be doing rather than trying to read the charts and understand how oil goes up and this goes down and you know all this sort of thing it could even it can read news articles it does all that stuff oh yeah yeah it does that but it's not gonna like it could uh like it's like we've tried to sort of get a few things that um would draw the exact trend lines and these sorts of things right make it a bit easier for you or for yourself and then you look at the correlation so nothing changes in the market if i wanted to know a bit more about uh correlations any analysis any research it you need it you know i'd be like saying si for sure but when it comes down to the natural flow and details we've had i've got a couple of guys that have put a bunch of cash into this and set up all the trading tools, and they have absolutely been destroyed. And that's, once again, it's the same as what I've been saying. Remember that you can think back to a nice, easy trade. When the markets are trending and nice, as I said, you take Trump out of this whole equation, then you have trending markets. The AI research stuff would be spot on and killing it, as we would as well, because we know what's going on. This disruption, no one, like the... So we've put a bot through our, like, consumed our whole course plus additional information about everything, and it has had its ass handed to it about three times. Like, I'm talking 50, 60K down on each account. So I like it. I like it for a lot of stuff, but what we need to do is take out the anomaly, which is Trump, and then you'll see that stuff really be... But see, we can, I mean, news events and whatever, we personally see it, so why can't the intelligence see it? Oh, no, it can see the news, but it's like, okay, what happens in the markets? Because the condition... Well, it's saying don't do anything. It's the first thing is don't make any moves right now because we don't know what it's doing. I mean, that's the thing, isn't it? Well, some of these things, though, we're right, going well the yields are higher so we're buying dollars but then you might have an event on the geopolitical side which is dollar reversal which you can't see right so that's this is the thing about what you're talking about is so geopolitical events you can sort of see it like you're saying you can see the news but you don't know what the impact is until it's actually hitting that means do nothing that's the point we're trying to make economic numbers everyone can see those and it just behaves normally everyone can trade so that's the thing it's the same sort of thing is what we're doing but you can definitely get the edge on research and analysis using well i'm going to call it AI because i think i'll make it a bit crazy but um i knew you i knew you'd push back so i'll give it to you oh like it's like like change like what does he want to call new mexico like something different um yeah anyway so that's where we are guys with that i just wanted run that by you too the whole world needs a big ******* shake up oh mate but if we aren't living the terminator movie and uh the matrix you know like watch go and watch those two movies and that's where we're going it's like insane yeah we all want it to be the same including trading but then we want it shaken up so which one do we want well like this is the thing there's no going backwards and you shake it up you can't come back like it's like social media right social media is i think the devil reincarnated um yeah i agree yeah the um trump and and well when we talk about trump and and some of the uh issues around the war and everything do you see uh in the near future that the market if he does lose a little bit of uh power in the in the senate or of Congress, whatever it is, to get things passed, will markets tend to come back into the flow that we were talking about? Because he does say some things that really do affect the markets instantly. So my point is, like in the next period of time, could you put a time frame on roughly when things would come back into the flow that we talk about? I think you're right on it, Stephen. The midterm elections, right, if he loses, then he loses a lot of that bullshit decision making instant crazy ----. Yeah, he won't be able to get things through like he can now, right? No, the war will be put to bed immediately, right? So whatever joke that is, that's over. So everyone is hoping, I've spoken to a lot of my mates in the US, they're like, if we can just get this through and he loses power, then we go back to more, like he'll be disruptive, but it won't have an impact because everyone will know he can't actually enact the bullshit he's saying, right? the um so i think that's the one right and and like you have to be careful when you talk to people in the states in particular because politics over there unless you know it's sport right and they people talk it's like they've got his followers and and fair enough people have got the right to make their own decision but he's certainly got his followers but um yeah i just think for the disruption that we're talking about um yeah in order to get the flow back in the markets you know do you see is it gonna would it be another 6-12 months or no no no it'd be pretty it'd be pretty quick steve november all right okay yeah yeah no this isn't the market doesn't like wait to see how it goes when these things happen they know they know what's going to happen if the outcome is this and it changes straight away yeah okay yeah yeah all Right, yeah, no problem. Good, thank you. Someone else have a question there, was it? You, Jase? No, no, no, I'm good, thank you. Okay. All right, guys, Kev, you brought up some good points there, mate. Let's see how it goes. And, like, from here on in, if you are trading and you see something correlate, let's hear it, because that could be worth some dollars to the rest of the team. Let's come back to what you're looking at today, just to refresh our memory while we're online. I mean, we've got unemployment for Aussie. um, we've got US stuff at the same time there, oh so it's a bit later, isn't it? Let me have a look here, the uh oh, it's PM, I beg your pardon, I've always fricking got to look twice at that AM and PM, ----, hey? Yeah, yeah, that's right, I need to be different colors so your bloody mind doesn't get on that. Does anybody have that trouble like I do? You look at ---- and you go, that's fricking PM you idiot, they're all the same damn color, yeah so make the AM and the PM a different color please Well, we can't because they're actually coloured based on impact, not PM and AM. What, just the 11.30 PM, 11.30 AM? No, the impact on the market, like one, two or three. No, just the colour. Yeah, I know, but the colour is red because that's a high-impacting number. Oh, I see what you're getting at. If that was an AM, I'd be like purple and everyone would go Faded and not faded or something. I don't know, it's just, I don't know. I don't know how many times I've fricking looked at that and sat here and thought, well, why isn't it moving? I'll go again, you idiot, it's fricking PM. God, I don't know how many times. Am I the only one? No, no, it happens, it can happen a lot, Kev. Don't worry about that, mate. You raised some good points too, Kev, so it's all good, buddy. All right, guys. We're going to be looking at the Aussie at the moment and see what happens, eh? Yeah, for sure. Okay. All right, chaps, thanks for joining me. See you later. Thank you.