I Re-Built A Quant Trading Strategy With Fable 5 — Transcript

Full transcript

1. 0:00I've realized something about trading,
2. 0:01and it's that there's a monumental gap
3. 0:03between how the average person does day
4. 0:05trading and a hedge fund does day
5. 0:07trading. Cuz I'm going to share
6. 0:08something with you that absolutely
7. 0:10shattered my view of how trading works.
8. 0:12The guys that are doing the trades at
9. 0:14that top level are called quants, and
10. 0:16they're not using trend lines and
11. 0:18indicators to make their trades. You
12. 0:20might be thinking, well, how on earth do
13. 0:21they do it then? Well, that's exactly
14. 0:23what I'm going to show you in today's
15. 0:24video. Now, there's a guy on Twitter
16. 0:26called Roan. He is a quant and has made
17. 0:28tons of money doing so. He's essentially
18. 0:30just revealed all the secrets, all the
19. 0:32nuances of what quants do that's very
20. 0:34different to the average trader. I went
21. 0:36through all of his work on what's called
22. 0:38the hedge fund method, and I've
23. 0:39condensed it all into a single video
24. 0:41that you're watching today. Now, you may
25. 0:42have seen a video I did a few weeks ago
26. 0:45on this exact same topic, but this is
27. 0:47AI, and surprise, surprise, something
28. 0:49has changed. I did the whole thing
29. 0:50previously on Opus 4.7, but just the
30. 0:53other day Fable 5 came out, which is a
31. 0:55brand new model that they even delayed
32. 0:57the release of because it was so
33. 0:59powerful and people could quite easily
34. 1:01use it for malicious things. I had Fable
35. 1:045 analyze everything, and it made a
36. 1:06series of very important tweaks and
37. 1:08improvements that I want to give you in
38. 1:10today's video. In this video, I'm going
39. 1:11to give you three things. Number one,
40. 1:13I'm going to explain very thoroughly,
41. 1:15but very simply, what the hedge fund
42. 1:16method is and all the concepts therein.
43. 1:18Number two, I'm going to show you where
44. 1:20Fable 5 has spotted some mistakes and
45. 1:22made some improvements. And finally, I'm
46. 1:24going to give you a single copy and
47. 1:25paste prompt that you can put into your
48. 1:27Claude or any LLM. It will connect to
49. 1:29your TradingView and install all of the
50. 1:31hedge fund concepts that I'm about to
51. 1:32talk about into your screen on
52. 1:34TradingView right in front of you. It is
53. 1:36magic to watch. It will also remember
54. 1:38all those concepts and save them as
55. 1:39skills, so that any trading strategy
56. 1:41that you try to implement in the future
57. 1:43will come pre-installed with everything
58. 1:45in the hedge fund method. Everything can
59. 1:46be found completely for free in the link
60. 1:48in the top line of the description or in
61. 1:50the top pinned comment. So, right after
62. 1:53you subscribe,
63. 1:54let's get into it.
64. 1:58And the first concept is what's called
65. 2:00states. The hedge funds and quants are
66. 2:03looking at the current state of the
67. 2:05market. And the more important element
68. 2:07of that is that they're trying to
69. 2:08quantify the current state of the
70. 2:09market. What actually is, if we put a
71. 2:11number to it, you know, how bullish is
72. 2:13it? How bearish is it? How stagnant is
73. 2:15it? We're looking for those kind of
74. 2:16three metrics. So, if we make the
75. 2:18parallels to like the weather, for
76. 2:19example, a retail trader, a retail
77. 2:22person reading the weather,
78. 2:24I guess a retail meteorologist, they
79. 2:26might go outside and go, "Oh, it's
80. 2:27really windy today." And kind of lick
81. 2:28their finger and put it up to the sky.
82. 2:30That's what retail trading is,
83. 2:32basically. A quant, or a proper
84. 2:34meteorologist, they're going out there
85. 2:36and they're measuring the wind. They're
86. 2:38measuring the humidity and the pressure
87. 2:40movements and stuff. They're actually
88. 2:42getting numerical values to determine
89. 2:44how windy is it? How much humidity is
90. 2:46there? So, in the question of, "What's
91. 2:48the weather like?" the retail would say,
92. 2:50"Nah, it's all right." But, the quant
93. 2:51would say, "Well, it's all of these
94. 2:53markers." Like, we've got all these
95. 2:54numbers to represent the current
96. 2:56situation of the weather. And that
97. 2:57brings us very simply into concept
98. 2:59number two, which is the actual state.
99. 3:01What is the state right now? So, they
100. 3:02use that information about the weather
101. 3:04to determine, okay, how do we actually
102. 3:06classify today's weather? Is it good? Is
103. 3:08it okay? Is it bad? And so, how they do
104. 3:10that in the hedge fund method is that
105. 3:12they look back over the last 20 days of
106. 3:14price history. And if the price history
107. 3:16over the last 20 days has gone up more
108. 3:18than 5%, then it's actually classified
109. 3:20as we're in a bull state right now. If
110. 3:22the price has been anywhere between -5
111. 3:25and +5, that's what the hedge funds
112. 3:27would call sideways. And anything below
113. 3:295% loss in those 20 days would be
114. 3:32classified as a bear state. Again,
115. 3:34putting numerical values and then
116. 3:36assigning a label to those numerical
117. 3:38values so that we can be better
118. 3:39informed. But, there are actually 10 of
119. 3:41these different concepts that we're
120. 3:42going to apply today. So, let's move on
121. 3:44to number three. And concept three is
122. 3:46the thing that I really think got people
123. 3:48to share this video around last time,
124. 3:50and it kind of went semi-viral with a
125. 3:51quarter of a million views on that video
126. 3:53that was published just a few weeks ago.
127. 3:55And it's this whole concept of the
128. 3:56Markov property. So, in a single
129. 3:58sentence, it is that where the market
130. 4:00goes is entirely dependent on the state
131. 4:03today. Not about what's happened in the
132. 4:05past. There's no amount of movement in
133. 4:07the past that the price is going to
134. 4:08dictate what's going to happen from now.
135. 4:10That's why people say that the past ends
136. 4:12up rhyming in the future. It's because
137. 4:14it's not 100% accurate, right? It rhymes
138. 4:16sometimes, but it's not entirely
139. 4:18perfect. What the quants have realized
140. 4:20is that if we determine what the state
141. 4:21is right now, that has a better
142. 4:23indicator for what will happen tomorrow.
143. 4:25This is the Markov property. Just to
144. 4:27visualize that in your mind, we could
145. 4:28have a journey that we're taking from
146. 4:30Little Rock, Arkansas, all the way up to
147. 4:32New York City. The path that we have to
148. 4:34take to go from Little Rock, Arkansas,
149. 4:37to New York City is very specific based
150. 4:39on where we start. It's no good giving
151. 4:41me directions from Grand Rapids,
152. 4:43Michigan, to get to New York City if I'm
153. 4:45in Little Rock, right? It makes no
154. 4:47difference. It makes all the difference
155. 4:49where I am currently. So, today's state,
156. 4:52the label that we've given today based
157. 4:54on the last 20 days, is the biggest
158. 4:56indicator for where the price is going
159. 4:57to go. And there's a reason for that,
160. 4:59too, which we'll get into later. For
161. 5:01concept four, the hedge funds will go
162. 5:03back in time and look at every single
163. 5:05moment where the state of the current
164. 5:07day transitioned into a different state.
165. 5:10So, they'll look at all the occasions
166. 5:11where the bull state moved into a
167. 5:13sideways state, when a bull state went
168. 5:15into a bear state, when a bear state
169. 5:17went into a sideways state. Every
170. 5:19combination. There's actually nine
171. 5:20combinations of what can happen. And
172. 5:22they count up all of the occasions that
173. 5:24did those different things. And they And
174. 5:25they tally them up, essentially. Once
175. 5:27they have tallied all of that
176. 5:28information together, they can actually
177. 5:29come up with percentages in terms of the
178. 5:32likelihood of the state in the next
179. 5:34transition. It's almost like saying, if
180. 5:36it's raining today, it's likely to rain
181. 5:38tomorrow. But there's also a chance that
182. 5:40it's sunny tomorrow. And so, based on
183. 5:41all the history of the transition
184. 5:43moments, we can know, based on a a
185. 5:45how likely it is that it's going to be
186. 5:47sunny tomorrow if it's raining today, or
187. 5:49how much how likely it is to rain
188. 5:51tomorrow if it's raining today. And
189. 5:52there is a correlation between what
190. 5:54happens today and what happens tomorrow.
191. 5:56And that brings us on to concept five,
192. 5:58which is called stickiness. We've all
193. 5:59heard the term the trend is your friend,
194. 6:01and this actually comes down to a
195. 6:03mathematical principle rather than just
196. 6:05a catchy phrase. You may not know this,
197. 6:07but a bull state, if we classify right
198. 6:09now as a bull state, it's far more
199. 6:10likely for the following day to also be
200. 6:13a bull state. The same goes for a bear
201. 6:16state. If you're in a bear state, it's
202. 6:17the highest likelihood outcome of the
203. 6:19next day is going to be another bear
204. 6:20state, which is why you want to stick
205. 6:22with the trend for the most part. This
206. 6:24is mathematically why. So, what you find
207. 6:26is is that bull states are sticky states
208. 6:28and bear states are also sticky states.
209. 6:31And it's that stickiness that allows the
210. 6:33trend to continue. Now, in the previous
211. 6:35video when Opus 4.7 kind of analyzed the
212. 6:37stickiness scores for the different
213. 6:39states, the numbers all seemed a little
214. 6:41bit too high. And so, when Fable 5 went
215. 6:43through this, it flagged some of those
216. 6:45issues and recalculated. And the failure
217. 6:47that it revealed is incredible to kind
218. 6:50of see be figured out. The concept is,
219. 6:52if you weigh yourself every single day,
220. 6:54you're going to deduce that your weight
221. 6:56is very consistent. So, if you weigh 200
222. 6:59lb and you weigh yourself the next day
223. 7:00and you're 199, the next day you're 198,
224. 7:03the next day you're 197, just looking at
225. 7:06those days, you would be you would
226. 7:07think, "Okay, my my weight is relatively
227. 7:09stable." Obviously, there's a trend
228. 7:10there, but it's stable. It's not going
229. 7:12from 200 to like 190 at the next day.
230. 7:15It's not volatile like that. But and
231. 7:17looking at it in that way on that
232. 7:18granular detail, you you tend to think
233. 7:20trends are a certain way when they
234. 7:22actually aren't. And so, when we look at
235. 7:24the last 20 days, if we go back to the
236. 7:27previous day and look at its previous 20
237. 7:29days, we're only looking at a day
238. 7:31difference. And that's not great for
239. 7:32predicting the outcomes of the following
240. 7:35days. So, Fable 5 caught this and we've
241. 7:37obviously added these improvements into
242. 7:39the prompt that that going to give you
243. 7:40at the end. By the way, I'm going to
244. 7:42demo that for you as well. We're going
245. 7:43to go through the whole process
246. 7:44together. Instead, what it now does is
247. 7:46it waits until there is no overlap. So,
248. 7:49if we have this date and then the 20
249. 7:51days previous, well, 20 more days will
250. 7:53need to take place and then it will look
251. 7:55at the 20 days previous and then see how
252. 7:57sticky the outcomes are. That reduced
253. 7:59all the numbers in the stickiness
254. 8:00calculation and gave us a far more
255. 8:02accurate view of what hedge funds would
256. 8:04actually be looking at. That brings us
257. 8:05into concept number six, which is
258. 8:07actually the signal to make a trade.
259. 8:09>> I've seen this pattern across all
260. 8:11quantitative models and hedge fund
261. 8:13models is that they do very complex
262. 8:16stuff, but then when it comes to
263. 8:17decision time, it's really narrowed down
264. 8:20and made very simple to execute on. So,
265. 8:22how they calculate it is they look at
266. 8:23the percentage of the likelihood of the
267. 8:26bull state continuing the next day. They
268. 8:28also do the same for the bear state and
269. 8:29they subtract the bear state from the
270. 8:31bull state. If the number is positive,
271. 8:33then that gives you a positive outcome
272. 8:35on the following day. The highest
273. 8:37likelihood is that it's going to be a
274. 8:38bull state. Like, let's say if you have
275. 8:4080% chance of it being bull and then
276. 8:42there's 10% chance of it being bear,
277. 8:44well, then overall the signal is a 70%
278. 8:47likelihood of a bear state being
279. 8:49revealed tomorrow, meaning you can place
280. 8:50a trade.
281. 8:51Now, 70% as a number is a huge number,
282. 8:54meaning there's a huge amount of
283. 8:55confidence that it will be a bull state
284. 8:57tomorrow. Now, what the hedge funds are
285. 8:58doing here is saying, "Okay, from 0 to
286. 9:01100, there is a scale here. If we're
287. 9:04going to If we're going to be placing a
288. 9:05long, if we're bullish, if we believe
289. 9:07the price is going to be If we believe
290. 9:09the market's going to move in the
291. 9:11upwards direction tomorrow based on the
292. 9:12percentages, well, again, it's not just
293. 9:14about Yes, let's go in or let's not go
294. 9:17in. It's to what degree are we going
295. 9:19in?" For example, if it's a 70%
296. 9:21confidence, then you're going to
297. 9:22allocate more of your funds into that
298. 9:23cuz it's a higher confidence bet. And if
299. 9:25it's a 1% confidence, you're going to do
300. 9:27the appropriate amount of trading on
301. 9:29that day, right? You can have a lower
302. 9:31amount that you're going to trade. And
303. 9:32it goes both ways. If the bullish
304. 9:34outcome or it's going to be a bullish
305. 9:35state tomorrow percentage is 20% and the
306. 9:38likelihood of tomorrow being a bear
307. 9:40state is 50% then it's a 30% likelihood
308. 9:43that it's going to be a bear state
309. 9:44tomorrow. And so if you're playing the
310. 9:46game of shorting like betting on the
311. 9:48market going down, then that's your
312. 9:50signal to do so and then you can wait it
313. 9:52according to the confidence. Now it's up
314. 9:53to you to determine how the scale works
315. 9:56in terms of how much you allocate based
316. 9:57on certain confidence levels, but this
317. 9:59is all stuff you can install when you
318. 10:01copy and paste this into Claude, you can
319. 10:02give it your strategy and all. Use these
320. 10:04concepts to feed your strategy. Now
321. 10:06concept seven is about looking further
322. 10:08ahead cuz it's not just about tomorrow,
323. 10:10right? We're not just gambling on what's
324. 10:12tomorrow. There's also percentage
325. 10:14likelihoods of there being a bull state
326. 10:16or a bear state that's higher or lower
327. 10:17than where you are currently in let's
328. 10:19say 10 days, right? We might want to
329. 10:21look further ahead. Well, the hedge
330. 10:23funds use a very special piece of maths
331. 10:25here. It's called multiplying by itself.
332. 10:28It's so simple. So if I want to
333. 10:30calculate the likelihood of the outcome
334. 10:32in two days time, I'm I'm going to take
335. 10:34that percentage likelihood that we've
336. 10:36used for the you know, the subtraction,
337. 10:38the bull state to the bear state
338. 10:40subtraction. I'm going to take that as a
339. 10:42decimal place. So let's say I've got a
340. 10:4360% likelihood that it's going to be a
341. 10:45bull state tomorrow. Well, that's 0.6,
342. 10:48right? As a decimal. All we have to do
343. 10:49is times 0.6 by 0.6 and whatever number
344. 10:52we're left with, that is the percentage
345. 10:54that we're
346. 10:56of likelihood that it's going to be a
347. 10:57bull state the following day on that
348. 10:59second day. If we want to do it three
349. 11:01days ahead, we just cube it by itself
350. 11:03and so on and so forth and you call that
351. 11:05you know, to the power of 28 if you want
352. 11:07to do 28 days later. At a certain point
353. 11:09though, projecting that far ahead
354. 11:11becomes useless because the numbers get
355. 11:13so small that there's no meaningful
356. 11:15reason to actually make any trades that
357. 11:17far ahead. There are other hedge fund
358. 11:18and quantitative measures that they take
359. 11:20that they take to calculate that far
360. 11:22ahead, but they're really looking at the
361. 11:24few days ahead of them because they have
362. 11:26the highest percentage likelihood of the
363. 11:28outcome taking place. It's really a lot
364. 11:29and I hope I'm explaining it well. Now
365. 11:31concept eight is something called
366. 11:33walking forward. And I had Fable 5 look
367. 11:35through this section and it picked up
368. 11:37something incredible from what Opus 4.7
369. 11:40did and made a drastic improvement. And
370. 11:41before I show you the results of what it
371. 11:43kind of came up with, I want to explain
372. 11:45the concept here about walking forward.
373. 11:47Walking forward relates to backtesting.
374. 11:49Now, the big problem with backtesting,
375. 11:51this is where you're looking at a
376. 11:52strategy now and you're seeing how it
377. 11:54performed in the past, the big problem
378. 11:56is is that when you're backtesting from
379. 11:58your current date from right now, all of
380. 12:00the data to that point has learned from
381. 12:03events ahead of where your backtesting
382. 12:06will go to. This is a really tough
383. 12:08concept to explain. If I'm going to
384. 12:09backtest and I'm going to learn of
385. 12:11specific movements that happened in the
386. 12:13past, none of this information is
387. 12:15actually useful to me. Because if you
388. 12:17think the training data on the strategy
389. 12:19for that backtest is taking all of the
390. 12:21price movement from the entire history
391. 12:23of that asset and applying the strategy
392. 12:24with that knowledge. But if you're
393. 12:26looking at a pattern way in the past as
394. 12:28an indicator, how could that event that
395. 12:30happened way in the past be informed by
396. 12:33future events taking place, the same
397. 12:35future events that have informed your
398. 12:37strategy in the first place? It's almost
399. 12:39like taking an exam after you've already
400. 12:41seen the answer sheet. So, I started to
401. 12:42test it and made it so that in any
402. 12:45backtesting, the agent is only able to
403. 12:47see the data that happened before it. It
404. 12:50never allows looking to the future. So,
405. 12:53in the previous version, you kind of
406. 12:54backtested the S&P 500 and the old
407. 12:56version of this prompt showed that the
408. 12:58500 actually lost money over a long
409. 13:01period of time. I think the time was 30
410. 13:03years. But with this change that Fable 5
411. 13:05offered, it did in fact show that the
412. 13:07S&P 500 was profitable, which is the
413. 13:09reality. When I played the same thing to
414. 13:12Bitcoin, it didn't just show a 23x
415. 13:14growth over time, it showed nearly a 60x
416. 13:16growth over time. But it's not just
417. 13:18about the upside, it also rides the
418. 13:20negative price movement even harder as
419. 13:22well. So, backtests when you do them
420. 13:24will always flatter the outcome. And so,
421. 13:27we avoid that issue in the copy and
422. 13:29paste prompt that I've given you that
423. 13:30you can take from this video. Now,
424. 13:32concept number nine is an interesting
425. 13:33one. It's called the hidden Markov
426. 13:35method. If you remember earlier on, I
427. 13:37can't remember which one it was, concept
428. 13:38number three was the Markov method.
429. 13:40We're actually now going to do something
430. 13:41called the hidden Markov method. And do
431. 13:43you remember how we determined earlier,
432. 13:45just we just kind of said it, that
433. 13:46anything over 5% equals a bull state,
434. 13:49anything under -5% equals a bear state,
435. 13:52and anything in between equals a
436. 13:53sideways state. Well, those numbers were
437. 13:55just made up. Anyone could make their
438. 13:56own numbers. Anyone could make their own
439. 13:58kind of uh boundary of where those
440. 14:00numbers are. You could say that -1% over
441. 14:0220 days is a bear state. You could also
442. 14:05say +1% is a bull state. And that's just
443. 14:08weird because then it becomes like this,
444. 14:10okay, we just made up this number to
445. 14:12make these really big decisions. And of
446. 14:13course, hedge funds aren't going to
447. 14:15settle for that, right? There's a level
448. 14:16of movement that happens. They're going
449. 14:18to move those boundaries to get the best
450. 14:20performance. But you can't just make it
451. 14:22up. You can't just make up a number.
452. 14:23It's a bit like a babysitter walking
453. 14:25into a house full of kids that they
454. 14:27don't know yet. At first, the babysitter
455. 14:28knows nothing about these children. But
456. 14:30after a few days of watching, you'll see
457. 14:33the kid that's loud, the kid that's
458. 14:34unnecessarily aggressive, you'll see the
459. 14:36one that cries all the time. And that's
460. 14:37what the hidden Markov method is doing.
461. 14:40It's removed all the labels that we've
462. 14:41applied to it from the past, and it's
463. 14:43doing its own view of all the price
464. 14:45history and assigning labels based on
465. 14:47purely what it's observing, without any
466. 14:49rules applied, without saying, you know,
467. 14:52-5% +5%, you know, it's not it hasn't
468. 14:54got any of that context. It's just
469. 14:56looking at the chart for what it is. So,
470. 14:58when you've got the Markov method
471. 15:00applied, where you've actually got these
472. 15:01boundaries defined, and you combine the
473. 15:04hidden Markov method, where there's no
474. 15:05definition, at some point there will be
475. 15:07an overlap. And when they do overlap,
476. 15:10that means you're looking at a
477. 15:11subjective confirmation and an objective
478. 15:14confirmation. And this is the type of
479. 15:15information that signals a buy or a
480. 15:17sell. And now, concept 10 is the concept
481. 15:19of actually doing this thing. We're
482. 15:21going to take the one-shot prompt, we're
483. 15:22going to copy it and paste it in. I'm
484. 15:23going to demo the whole thing, and
485. 15:25you're going to see the creation of a
486. 15:26Pine Script that will go automatically
487. 15:29onto your TradingView chart, apply this
488. 15:32hedge fund method, the Markov methods,
489. 15:34everything onto your chart so you can
490. 15:36see it, and it will give you one clear,
491. 15:38concise decision about what you should
492. 15:39be trading today. It will apply to any
493. 15:42chart, any asset, any time frame, and
494. 15:44all of it for free. So, all you have to
495. 15:46do is click the link in the top line of
496. 15:48the description or the link in the top
497. 15:50pinned comment. Come over to 01 Systems.
498. 15:52You're going to click Classroom at the
499. 15:54top. We're going to come down to YouTube
500. 15:56Prompts. We've got loads of courses in
501. 15:57here and stuff. And you've got this, I
502. 15:59recreated a quant trading strategy with
503. 16:02Fable 5. All you have to do, triple
504. 16:04click in here, click copy, and we're
505. 16:05going to come over to our Claude, and
506. 16:07we're just going to paste this in. It's
507. 16:08going to do a whole bunch of things.
508. 16:09What I would say is that it's best to
509. 16:11put bypass permissions on because then
510. 16:13it doesn't ask you loads and loads of
511. 16:15questions. But when we click enter here,
512. 16:17um it's going to do all the work for us.
513. 16:20Um you will have to have the TradingView
514. 16:23desktop app already ready. But if you
515. 16:26don't have it ready, go out and do that
516. 16:28now. You can just go to TradingView and
517. 16:29just download it. This can be set up
518. 16:31with the free account on TradingView as
519. 16:33well. It will go through a whole series
520. 16:36of steps here. One of those steps that
521. 16:38it will go through is it will actually
522. 16:40try to install um
523. 16:43a connection between your Claude and
524. 16:45TradingView. That will enable you to be
525. 16:47able to just talk to your Claude and
526. 16:49have things happen on the TradingView
527. 16:50chart. It can also add Pine Scripts, it
528. 16:52can do backtesting, all kinds of stuff.
529. 16:54You're interacting with it on Claude,
530. 16:56not on TradingView. So, it's just said
531. 16:58here is about 2 minutes setup. Here's
532. 17:00what we're going to need. We're going to
533. 17:01install a reusable skill called the
534. 17:03Markov 2 hedge fund method that you can
535. 17:05later point any ticker or strategy. So,
536. 17:07if I have a the Bitcoin chart or the
537. 17:09Ethereum chart or the Tesla chart, I can
538. 17:12say, "Hey, use the Markov 2 hedge fund
539. 17:14model for this, please." Um and it will
540. 17:15just do it, right? It will just apply it
541. 17:17to the chart and give you a a
542. 17:18run-through. You I remember also, you
543. 17:20can just set this up to send you an
544. 17:21email as well to say, "Hey, this is what
545. 17:23we found using this hedge fund Markov
546. 17:26method, whatever." It send you an email
547. 17:28to tell you what you need to do. Or, you
548. 17:29can even connect it to make the trades
549. 17:31for you, which we made a video on a
550. 17:32little while ago. So, number two, it's
551. 17:34going to score market regimes. So, it's
552. 17:35going to score all the bull, the bear,
553. 17:37the sideways via tran- via a transition
554. 17:40matrix and stickiness score and will
555. 17:41emit a directional signal to tell us
556. 17:44what is the signal that we're having,
557. 17:45how strong is the direction that we're
558. 17:47going, how sticky is it. Then, it's
559. 17:48going to look at the three floors from
560. 17:50version one of this prompt that are now
561. 17:53fixed and it's going to run a live proof
562. 17:55on the SPY chart with a 10-year walk
563. 17:58forward. Okay, so it says type go when
564. 18:00ready and it's as simple as that. That's
565. 18:02all
566. 18:02That's all we're going to do. It's so
567. 18:03cool. I love these prompts. And if
568. 18:05you're enjoying this, please share it
569. 18:06with people who you might who you think
570. 18:08might find it interesting. Okay, it's
571. 18:09now asking me now, which mode should
572. 18:11Markov 2.0 run in? So, we can have it as
573. 18:14a filter. This is the the default
574. 18:15option. This says that the regime gates
575. 18:18your existing strategy, longs only when
576. 18:21when signal is bullish and shorts only
577. 18:23when it's bearish, flat, in a chop. Your
578. 18:25strategy stays yours, but Markov decides
579. 18:28when it may act. Or, you can have it
580. 18:29standalone. So, you actually it trades
581. 18:32the bull and bear signal directly.
582. 18:34Position size scales to install with a
583. 18:36cap that you set. I'm going to go for
584. 18:38standalone cuz I want it to actually be
585. 18:40part of my real strategy. Question
586. 18:42number two, use price-only states or
587. 18:44enhanced states.
588. 18:46I'm going to say we want to do the
589. 18:48enhanced. We want, you know, there's two
590. 18:49options basically. Also, if you don't
591. 18:51have the connection between TradingView
592. 18:53and Claude already set up, it will in
593. 18:55fact sto- install it for you. It's just
594. 18:57noticed that I already have it installed
595. 18:58on my computer, so it's not doing that
596. 19:00part of the process, but it will for
597. 19:02you. And remember, on all of these
598. 19:03things, you can define you can define
599. 19:05any of the elements, right? You can talk
600. 19:07to Claude and say, "Hey, this doesn't
601. 19:08fit my strategy properly." Or, you can
602. 19:10just tell Claude your strategy, give it
603. 19:12all the information you want, and say,
604. 19:14"Blend it in with the decision-making
605. 19:15process of the hedge funds using the
606. 19:17Markov two model."
607. 19:18And it will just do that, okay? There's
608. 19:21no need any kind of technical
609. 19:22understanding here. So, right now it
610. 19:24says that the data is flowing. It's got
611. 19:262,767
612. 19:28daily SPY bars for the last 11 years.
613. 19:31It's on the standalone mode, and it's
614. 19:33got enhanced states, and it's building
615. 19:35the engine right now. Um so, it's
616. 19:37looking at a few things to see what's
617. 19:39present in terms of the features in my
618. 19:40computer. Obviously, a few of the things
619. 19:42it's already got because it's already
620. 19:43been installed on my computer. But if
621. 19:45yours isn't, it will just install it.
622. 19:48And it's super cool. And now it's
623. 19:49writing the engine for the strategy. So,
624. 19:51it's now also then pulled up the Pine
625. 19:53Pine editor to essentially get the
626. 19:56indicator in that we've created based on
627. 19:58the strategy that we've made. You can
628. 19:59see it's added it all. This kind of just
629. 20:00popped up for me.
630. 20:02Uh I can just click, I think at certain
631. 20:04point I can just click the play button.
632. 20:07And it'll put it on the screen. There it
633. 20:09is. That's That's it. It's telling us
634. 20:11right now that today is a bear state.
635. 20:13We're minus 16.7 over the last 20 bars
636. 20:16on the daily chart on Bitcoin.
637. 20:19And so, today we're we're in that, you
638. 20:21know, that bear signal. And bear signals
639. 20:23are sticky. So, in the 20 days that go
640. 20:26on from here, we'll then determine what
641. 20:28the state is from there. And so,
642. 20:30everything that we've talked about in
643. 20:31today's video is now installed into in a
644. 20:33single little graph that is very easy to
645. 20:36read, that just works. And we can use
646. 20:39these signals to inform our decisions in
647. 20:41trading. This should all be set up now
648. 20:43for you because you've just copy and
649. 20:45pasted this entire prompt. Install your
650. 20:46strategies into this stuff, and let me
651. 20:48know how it goes. As I mentioned, if you
652. 20:50want the prompt to any of the videos
653. 20:52that I make, you just come down a little
654. 20:53bit, and you'll see a link right here in
655. 20:55the top line of the description. All you
656. 20:57do is click that link. It will take you
657. 20:59over to 01 Systems. Come over to
658. 21:01Classroom, YouTube Prompts, and it's
659. 21:04right here. Copy and paste this entire
660. 21:05thing. It will do everything for you,
661. 21:07and best of luck.
662. 21:10See you.