The Wolf Of All Streets - Bitcoin Sinks | Here Is What Happened And What To Do Now (Buy The Dip)

Starting point is 00:00:00 Bitcoin sunk to $67,000 once again, causing pundits and analysts to give us a million excuses for why Bitcoin moved $2,000. But anyone who watches myself and my guests knows that we don't really care that much when Bitcoin drops $2,000. Here's what happened and what to do now. Well, it dropped by the dip. We'll discuss it. I've got an amazing guest today, David Packham from Chintize. The first time we've had him on here. And of course, the boys from Arch Public on the back half talking about the trading algorithm and all the success we've had there with the $10,000 portfolio. Are you guys ready? Let's go. What is up, everybody? I'm Scott Melker, also known as the Wolf of Wall Street. Before we get started, please subscribe to the channel and hit the like button right down below. As I said, guys, we've had a small dip today, as we can see here,

Starting point is 00:01:05 taking a quick look at coin market cap. Bitcoin trading at $66,862. I mean, I don't know, last time we were there. Prices we haven't seen in at least a week. I know, very, very terrifying, at least a week. I mean, it crashes to levels from five days ago. You know how we do this, guys. But everybody wants to know why Bitcoin possibly dropping down to $67,000 when just a few days ago we were talking about new all-time highs being inevitable. You guys know the drill. I'm going to bring on David Packham now. First time here, David, man. Welcome. Good to see you. Hi, Scott. Yeah, a pleasure to be on. Thank you. Yeah. So, you know, man, we were talking about all-time, 100,000, 200,000, 300,000 four days ago.

Starting point is 00:01:49 Now back to 67,000, it must all be over, right? Yeah, exactly. We're in this interesting part of a crypto cycle where we're really moving along in a range. And what you tend to see with a lot of the uh traders especially people who this is their first cycle is that they get fatigued and and then then they capitulate and that's why you see these sell-offs in particular i think um yeah for those of us who are multi-cycle i've just seen this so many times it's just yeah whatever you know yeah i think we call this time-based capitulation and it's interesting you said which is exactly kind of what you just described. And it's interesting because if you go back to February or March coming into the halving, we all say, listen, we might have six months of boring. If you believe in the halving cycle, if you believe in the four-year cycle, which by the way, is not statistically that compelling when you only have two or three examples. But if you believe in it, which I kind of generally do, do if it ain't broke don't try to fix it

Starting point is 00:02:45 you know we're gonna have a very boring summer and we're probably not going to see very much until the fall that that could change but that's been my base case all along to me if we're above 60 and below 74 we're in that range you're talking about and it's much to do about nothing yeah that's hopefully uh i find summers are very often a time just to get on get on with uh building and work and very often not a lot really get on with building and work. And very often, not a lot really happens. And then it all really kicks off typically again around about September in terms of just activity. I've never understood why that is the case, because we're a 24 by 7 series of markets. It shouldn't logically happen, but I think it's just down to people.

Starting point is 00:03:20 Yeah, I think they take their money and go on vacation. I think a lot of people pointing at this Bitcoin ETF see 65 million net outflows on Monday, breaking 19 record day record streak. Oh, yeah, we were on the longest streak so far of consistent inflows. Okay, 65 million out. Not really a big deal. We obviously have some geopolitical unrest in France, in Europe, and then people looking at CPI numbers, people, I think, starting to get a bit more concerned about inflation and what that can mean. Yeah, I think whenever you see something like that, a headline like that, you really have to contextualize it. You have to take a look back at exactly as you just said, and step back and look at what would have been the net in or outflows over say a three month or a six month period, because one day or even one week really means nothing. And yeah,

Starting point is 00:04:10 the trends are very, very clear on this. What's interesting, though, is, at least for me, is if you look at the amount of Bitcoin allegedly held or at least represented in the funds by the likes of BlackRock, the question is, why does that not have more of a price impact on Bitcoin? And a suspicious part of me looks at it and says, maybe that's because they're not fully backing it like they should. Maybe they are, maybe they're not. But how is exposure to Bitcoin actually being represented when investors on Wall Street are buying it? So as an example, you know the old adageage not your coins not your keys right you know your keys not your coins now ultimately there is a possibility there isn't actually um enough bitcoin to fully back what's being put into the etfs which is why the price

Starting point is 00:04:55 hasn't moved i don't know it's um it's the type of thing though that wouldn't shock me because uh generally in finance they have a habit of um you know fractionalized banking where you take the assets and you you sell them on and on and on so in one sense it wouldn't shock me if they generally in finance, they have a habit of, you know, fractionalized banking where you take the assets and you sell them on and on and on. So in one sense, it wouldn't shock me if they were doing something similar with Bitcoin. Yeah, I mean, last I checked, we were talking about it yesterday on the show. I think there's a million Bitcoin being held now in the ETFs collectively. And I know that the news on Friday was that BlackRock had surpassed 300,000 Bitcoin themselves. Actually, it brings up an interesting topic. Do you think that these ETFs then,

Starting point is 00:05:35 as you described it, are a risk to the market? Or, you know, I've always kind of viewed them as a net positive, Wall Street never come in, more money coming in. But who's selling is the question you asked, right? If we have a million Bitcoin in these things, who's been selling into that? Well, exactly. And I mean, if you end up with a load of markets where there's arbitrage potential between, say, a fully backed Bitcoin market and another one that's actually not where you can apply a load of additional short pressure and things, you can, in theory, play around with markets and pricing. I'm not saying that is happening, but it's been intriguing to me that we haven't seen more of an upward push in Bitcoin because we understand, I think most of us in the industry, it's by design highly scarce and the supply is slowly reducing, reducing, reducing in terms of release rate. So it does interest me that so much Bitcoin is being acquired and we

Starting point is 00:06:23 really haven't seen the price move at all. That was a surprise to me, at least. Yeah, I think we saw the initial big move, but it is shocking kind of, I guess, in that context to not see it continuing up. I mean, I would imagine that all of it is backed. I can't imagine them committing securities fraud. No, no, no. But there could be some creative accounting or ways that they manage that certainly and they could also in some other way be the seller we also know that we have this cash and carry trade

Starting point is 00:06:51 that's very very popular and continues to be where obviously traders around this are buying spot and then taking advantage of the you know higher price futures and shorting that so there's just a lot of mechanics here for what can keep price sort of in a range. Totally. Yeah. Yeah. So listen, you mentioned something really interesting, which is that these times are great for building.

Starting point is 00:07:13 We always say the bear market is great for building, but maybe boring summers are also great for building even in, I think what's objectively a bull market. You are on top of one of the hottest narratives and you guys were in advance i would say of one of the hottest narratives which is rwa i wrote an entire newsletter actually coincidentally on it this morning talked about fidelity's interest there blackrock of course with build the dole or build but you you obviously the ceo here of chintai maybe just give us the quick uh you know the the quick uh summary of what you guys are doing but you said listen this is a good time to build so what are we building right now all this is boring yeah i'll give you the the

Starting point is 00:07:51 20 second summary of it for for anybody who's not familiar i mean ultimately we built a uh network as a service for rwa and what that means in practical terms is that anybody can take an instance of of the um uh the Shentai platform, which handles dynamic forms of issuance and secondary market deployment, sourcing of liquidity from lots of different protocols and networks. They can white label that if they want, they can use it as an entire tech stack for building out and it's multi-asset class. And I think one thing that differentiates us from most other companies in the space is we hold two licenses in Singapore that legally enable us to handle securities,

Starting point is 00:08:31 token issuance and secondary trading. So what this practically means is, though, that we've got clients in everything from as varied as carbon and hydrogen and the renewable space through to more conventional assets like stock tokens and bonds all going live with us. And it's a network effect. So we are not only do you have lots and lots of instances of our network, of our platform on a shared network, we're into plugging as much of this then into the wider DeFi space as we can. So we're looking at ways that we can explore leveraging Solana if it couldn't eventually its token extensions handle that. We can definitely do things on base. So

Starting point is 00:09:11 Coinbase, we announced some partnerships with yesterday and we're deploying onto the base network to be able to distribute to a large proportion of their investor base as well, where it's applicable, because certain RWA is not going to ever be accessible to retail level, and some is. And so you need to have controls around how that takes place. But yeah, that's broadly what we're in. I guess before it became trendy, we commenced that journey of going for licensing in Singapore, and here we are, But it's been great. Okay, so you're talking about, obviously, tokenize everything, right? I mean, that's at the end of the day.

Starting point is 00:09:52 It would be the end goal is that it's a superior way, no third party in between. I think we all know the pitch, certainly, as crypto advocates for why this would make sense. But for now, I think we've seen a slow trickle or a very small introduction to people. Like I said, I think we have roughly now $1.5 billion of tokenized T-bills, if you include, and then the Biddle product from BlackRock. So it's like $300 or $400 million from Franklin Templeton, Maple, all these. So $1.5 billion is a drop in the bucket, obviously. We've seen

Starting point is 00:10:23 some tests with real estate and some other things. And then, of course, some crazy stories like the Stradivarius violin and Galaxy with Animoca, with Yatsu. But I don't think we've really seen a major push yet in this space. So when does that happen? Is that a this cycle thing? Or is that like we're still sort of building that infrastructure? No, it definitely is a this cycle thing. I think it was interesting that Brian Armstrong, CEO of Coinbase said that really the industry is kind of looking for its kind of net, I think he referred to it as their Netscape or iPhone moment. And I actually agree with him on that in terms of what we're looking for is that sort of killer use case that really shows off the technology in a way that maybe attracts the attention of the wider world outside of our own industry.

Starting point is 00:11:15 For me, yeah, I think a lot of the early issuances you've seen, whether it's Ondo Finance or some of the stuff going on with securitize um and the blackrock funds it's tokenization of existing assets as they are and it's representing them on a blockchain which is great but in most cases not a lot else is happening on the trade life cycle outside of that it's not really fundamentally disrupting an industry in many cases if you're duplicating everything back like ondo on on the broker dealer side it's, it's actually adding a layer of admin and cost. What it's doing is increasing the accessibility for token holders in a way of doing it, but it's not really fundamentally changing a lot yet. So these are all early steps. I see them as kind of pilots and very much we've got a series of these about to be going out with a range of clients of

Starting point is 00:12:03 ours as well. We're doing bonds. We've got two different security token offerings. We've already done a carbon biochar issuance that was fully filled out with Swiss Re. And then we've got another couple coming up. So these are all positive. But are they that kind of iPhone, Netflix, sorry, Netscape moment? I don't think so. I think what's going to be an example of that for me, at least in

Starting point is 00:12:26 the RWA space, is going to be something really of a substantial size that bypasses the conventional mechanism somewhat. So as an example of the type of thing that it could be, we have a sovereign wealth fund in the Middle East that's a long-term partner of ours. And they're now ready to proceed with a very large issuance that they're going to have fully filled on the other side. So this is really for them an opportunity to go, can we completely bypass all these middlemen and counterparties that normally just drain a huge amount of cost for us and just use this infrastructure to go direct and actually do this deal and structure it properly and distribute it properly like that. And I think once that type of

Starting point is 00:13:12 thing takes place and we can evidence it to the wider world, it's going to be incredibly powerful. We'll see then that traction in the RWA space. But one thing your audience probably are not aware of rwa is really really hard you know it's not easy to issue rwa well like it is to just invent a meme coin and boom out you go it's it's much harder than that many meme coins is easy well mean coins are basically you you can obviously you can issue them in and then it's a competition for attention right it's it's that's really the the narrative of what mean coins typically are at least for me that they're a brand war uh where you're trying to fight for for attention um with rwas it's very different you've got the the regulatory landscape you've got all the compliance aspects and then you've got to find the the right buyers um for any issuance you're. And that's very often not going to be, you know, retail crypto degents.

Starting point is 00:14:06 It's a different subcategory of people. Right. So what about, you know, the narrative of tokenizing stocks where we cease to settle, you know, in the middle on T plus one and T plus two, I guess we've now gone from T plus two to T plus one. Very exciting. I love the, I think it was a Bloomberg headline, but it was like, for the first time in a century, we moved to T plus one.

Starting point is 00:14:31 Yay. We can do better than that, guys. But, you know, like that's when we start really disrupting the huge middlemen and the players, obviously, the citadels and such of the world, you know. And we do know that in theory, being able, you and I being able to send each other stock without that third party in trade would be great. But that seems so far off to me that we can replace those systems. As you think.

Starting point is 00:14:56 We're actually, at the moment, in discussions about leveraging a U.S. broker-dealer license whereby we'll be able to represent various stock tokens that are real world. So this is not origination, which is a lot of what we're doing. Something like, say, Nvidia stock or Tesla or, you know, Apple. And you'll be able to take and buy exposure into them. But this idea that you could then you could directly send it to me is something that we're not considering at this stage. You'd be able to buy and sell it, though, and gain exposure to it within the same account that you're also able to get exposure to a security token or a bond or indeed, you know, in our case, the network token checks and its associated yields. But we're trying to really think ahead about what are our investors going to want that makes them and gives them reasons to use the network.

Starting point is 00:15:49 Yeah, I definitely understand that on exchanges, we will be able to trade tokenized versions of stocks. I just don't think the stock market becomes necessarily tokenized at any time. No, no, no, no. I totally agree with you. I in terms of that, that there's no driver for it right now. If you look at them, they're very liquid, they're very efficient. Contrast that with say, real estate, you know, which is highly illiquid. And it makes complete sense that the main drivers where you're seeing real tokenization traction are things like the carbon credit markets and real estate where there's real opportunities there to disrupt. And another good example are things like fine art and spirits. If you want to get exposure to these things that have to be stored and that they're

Starting point is 00:16:37 a real pain and an idea to buy outright, be able to fractionalize this and just take exposure in an investment portfolio makes quite compelling sense compared to, you know, the current status quo. The Stradivarius violin. Exactly. Exactly. I think that is a very compelling use case. It's just not mainstream. But it is definitely a superior way for wealthy people to collateralize objects like that or be able to gain, you know, exposure, as you said, and to then have somebody that custodies them. That's trusted, which is exactly what we're seeing there.

Starting point is 00:17:07 I think that violin I keep referring to that I mentioned on the show, Yatsu bought it at auction, Galaxy gave him the loan, and someone in Hong Kong is custodying both the NFT effectively that shows the ownership and the violin until the loan is paid. So there's a huge, there's going to be a very huge market for the ultra wealthy, I think, to, you know, be able to take those kinds of loans where it's a safe loan given for the issuer, certainly. I just want to pivot slightly. Obviously, we had the Bitcoin spot ETF, BlackRock set the world on fire. That's what sent this market flying. I think we can all

Starting point is 00:17:46 agree ahead given the halving cycle. Now the attention has moved somewhat to Ethereum, Ether investment products, the largest weekly inflow since March. It didn't seem to be as much of a story when BlackRock actually tokenized BUIDL and did this and seeded it with hundreds of millions of dollars. But do you think the attention is going to come to Ethereum here slowly as we talk about the spot ETF and the S1s potentially getting approved and more people tokenizing things on Ethereum? Yeah, I do. I think that there's been a very fashionable trend in this cycle

Starting point is 00:18:20 to dump all over Ethereum and talk about it being a dying ecosystem, but I've never seen it that way at all. I personally thought that the way the community and the development team handled the move from proof of work to stake was astoundingly impressive. I really did. I was so impressed with when they pulled that off. I was expecting forks and other issues,

Starting point is 00:18:44 and they pulled it off. And if you then look at this, they have a continuous history of slowly upgrading the protocol, rolling out innovations and so on and so forth, and slowly trying to address problems and experimenting. And if things don't work, trying different things. So to me, no, I don't write it off at all. I think if you look at what the impact of an ETF will be on this, it really cements it alongside Bitcoin as the undeniable other kind of blue chip in the crypto space. If you're going to only pick two to have exposure to as a relatively risk averse individual with no real knowledge of the system, you'd probably do the two. Right. And now you can with an ETF. It widens and broadens that exposure. That's not to say that obviously it doesn't have various issues in terms of what it can be leveraged for, particularly with RWA. You know, I would love to be able to simply just go ahead and just add an RWA call for each asset I'm doing on Uniswap.

Starting point is 00:19:40 Right. But that's just not practical. And it doesn't, you know, that kind of thing is a fundamental problem with a public blockchain like this, where the moment those tokens are in your account, no one can stop you doing anything with them. Unfortunately, that's not how the real world generally operates. You know, you and I can't go and just sell whatever we like in our broker-dealer account

Starting point is 00:20:02 to somebody in North Korea, for example, for exactly the same reason. So we have to replicate certain societal controls around this. And that's really what RWA is facing as a blockchain challenge is how do we embrace the decentralization aspects as much as possible? How do we get the network effects as much as possible? But how do we still maintain certain controls that we can all operate with them? Yeah, the United States isn't going to love myself and someone in North Korea directly trading NVIDIA stock. Yeah, exactly right. I mean, they've lost some NVIDIA exposure, I'm sure right now. But yeah, you being the neighbor of that inadvertently is not really

Starting point is 00:20:38 what you want. And last question before I let you go. Will any of this be built on Bitcoin? It's been a huge narrative here, obviously. But it seems like the big players are still focused on Ethereum for the real major. I wouldn't even say the big players are actually I think most of the what's interesting about RWA, by the way, is most companies on it are all on different protocols at the moment, and virtually every single one is using a different

Starting point is 00:21:03 protocol, which I find very interesting because it's made me more protocol agnostic than I was. I think eventually for me, the inscription layer, the ownership layer sits naturally with Bitcoin is the most secure blockchain in the world by far. So to me, the idea that actually what we're doing is writing and inscribing to Bitcoin various ownership and ledger rights on something like a daily or whatever it is, a periodic basis to reconcile back to that as the public chain would definitely work for me long term. There are certain technical constraints around it at the moment, but I

Starting point is 00:21:46 think it's eminently doable. And so for me, although it's not something we're directly working on at the moment, I'm watching everything going on with Bitcoin, actually with a lot of enthusiasm. I know there's been some pushback from people who don't like what's going on, but for me, I've really liked what i'm seeing with regards to what i see quite innovative a lot of what's going on there yeah perfect well got it so where can everybody follow you actually it's in the description but you can go ahead and spell it out for him so they'll do it yeah no no it's at gunnison cap um is my uh x handle and um yeah otherwise i'm at shintai.io and shintainexus.com, which is the, that's more of the DeFi facing,

Starting point is 00:22:28 retail facing side of the network, where also the checks portal is about to go live as well. Awesome, David. Thank you so much for your perspective. It was great having you on. I look forward to doing it again soon. Thank you, Scott. Take care.

Starting point is 00:22:39 Cheers. Awesome. RWA is going to continue to be one of the hottest narratives inevitably this cycle. And I definitely think next cycle, going to continue to be one of the hottest narratives inevitably this cycle and i definitely think next cycle assuming we continue to cycle we're going to see just a massive explosion uh in this space something i've talked about quite a bit as i said i wrote a newsletter about it today just because uh seemed like the thing to do uh when the market is somewhat boring and chopping sideways but something that's not boring, obviously, is Archpublic.

Starting point is 00:23:06 I got Andrew and Tillman here, of course. Oh, Tillman, look at you. You got teams. He was like, forget it. I'm not sitting in the cabin anymore. I'm out of here. I'm still in the cabin. I'm just on the other side.

Starting point is 00:23:19 Okay. Well, I like it. It's a cool setup. It looks good. So, guys, what's happening? Give us the quick and dirty on what happened. Obviously, this week, we know that last week when we had the update of trading with automation is if I look at my trading records, most of the bad trades that I've taken are because I've broken rules. And you then have to take a step back and say, okay, well, why do I break the rules?

Starting point is 00:24:00 It's fear, greed, and boredom. And boredom is one of the ones that is most overlooked in my opinion, but it, it's, uh, it's boring to sit and look at charts and not take trades. You want to be in a trade. That's, that's the nature of the game. Um, so being disciplined and waiting for the right setup, it's an advantage to you. That's why we think automation allows you to have multiple strategies looking for those optimal setups. And it doesn't matter how boring it gets. It's just code. Yeah.

Starting point is 00:24:34 Andrew, so Andrew, I know you wanted to dig into a couple of strategies that you showed me. Yeah. So talking about the difference between boredom and different setups that are taken, you know, last month was really a showcase of what our algorithms do and how they do it. Right. So you see there in the sort of third column, you've got the actual trades themselves. So up five, down 1.6, down 3.9, and then up 12.9. The down 1.6, down 3.9, and then up 12.9. But the down 1.6, down 3.9, and then up 12, that is an actual algorithm within our algorithm called the Martingale strategy. And what that's doing is that is taking a trade and it's going to be specific associated with contracts. When that trade doesn't go your way inside of the algorithm, it's going to say, all right, we're going to double up and we're going to use the Martingale strategy and take a larger trade this time around.

Starting point is 00:25:36 And when that doesn't work out, OK, we're going to do it again. And so last time we talked about math on top of math on top of math on top of math. And this is a big portion of that math on top of math. Inside of these numbers, you're looking at both the setup. You're looking at the gap strategy. You're looking at profit factor. You're looking at all those things. But you're also looking at the Martingale strategy that puts you in a position on that third trade with the amount of

Starting point is 00:26:06 contracts that are being traded to have an explosive win like that without the martingale strategy these numbers these numbers end up being much more muted you know uh i'll give tillman here an enormous amount of credit because he's the maestro of the Martingale strategy. He came up with this strategy. He came up with this idea to layer this part of math on top of, on top of our strategy. So he's better to talk about it. You're seeing it in, in almost real time right there. Tillman Martingale. He doesn't know that's his name. I did not come up with the Martingale. The Martingale.

Starting point is 00:26:44 He made it clear though, that you meant to incorporate it into what you're doing. Correct. Martin Yale dates back to 18th century France when casinos became very popular and mathematicians were trying to figure out how to break the casino. And this was a strategy that one of the most brilliant math minds of the time came up with. And so imagine this, if you're in France in the 18th century and you go into a casino and you're a very, very wealthy landowner, you've got infinite wealth. Well, the strategy

Starting point is 00:27:19 was, is that you, every time you lose, you double your bet. And as long as you have enough bankroll to keep playing, that the odds of, for example, you landing on black on the roulette wheel, the odds of that happening in a sequence 13 times in a row, they started making wagers on that instead of on the actual wheel itself. And so it's essentially a method by which you increase your bet if you take a loss so that the next probable or the next bet has a higher probability of win.

Starting point is 00:28:00 And the further you go into a sequence, the higher the probability that there's going to be a change in sequence. That's just a mean regression type of a play. And so if you have an infinite bankroll, you could break a casino. And if they didn't impose table maximums, you could break a casino with the Martingale. But that is exactly why there are table maximums if you go to a table there's a certain limit by which you can't bet any higher denominated value they say you know ten thousand dollar table maximum whatever that is they're good at that the house is pretty good at math too yeah the house is the the best at math they figured the math game out but but this is the way in which they keep the martingale from taking advantage

Starting point is 00:28:46 of them is that they put a table max bet on each table. And so that will cut you off. Well, if you translate that to trading and you have a high probability in gambling, you have a less than 50% likelihood of winning, right? The house has the advantage. Let's just hypothetically say that any point in time on a stock chart is a 50-50 chance of it going up or down after that tick. No one knows. That's the whole point of the game is that you're deciding whether you think it's going to go up or whether you think it's going to go down. But it is a binary output. It's going to go up or it's going to go down.

Starting point is 00:29:30 And so if you look at that as kind of a base 50-50, and then you say, okay, well, we're going to take intelligent entries. We're going to try to use history to give us intelligence as to what patterns may exist in the markets. And then I'm going to try to play off those patterns. That's what technical analysis is all about. And if you look at the Martingale, it's like the probability, if you have, for example, on our gap strategy, a historical average of about 63% in terms of the gap closing. Well, you have in our estimation based upon historical performance, you would have a greater than 50-50 chance, even if it's 51% or 52, whatever number you want to place on it, right? And so by deploying a martingale where you have the edge, you can cut

Starting point is 00:30:22 it off at a certain cycle rate that gives you a great degree of confidence or a high degree of confidence that unless there's an anomaly whereby which there's a cycle that goes beyond that period, you're going to come back on your losers and you're going to essentially have a winner before you reach that end of the cycle. So that's what we've deployed on our gap strategy. I want to be clear to people in the comments. Yeah, there's angry people in the comments. This is not just, guys, there's many levels to this. It's not like they're just doubling down every trade yellow and praying for the best. Just to be clear, it's a level of the math that's a part of the strategy. This is not going to the casino, which by the way, I do love

Starting point is 00:31:03 the Martin Yale in the casino. It's like 25 bucks on blackjack. I lost 50 bucks on blackjack. I lost a hundred bucks. Yeah. You know, 90% of the time that works, but there's just, yeah, it doesn't even get into the greater algorithm. We're just talking about that aspect of it today. Correct.

Starting point is 00:31:17 And it doesn't double it. It's taking a measurement of the gap size and it's deciding how probable based upon the width of it if you have a very very large gap accordingly right yeah exactly and then it's gonna you know feather it in accordingly exactly i just wanted to be clear because i see some players comments one guy's like i did that in forex didn't go that great infinite bankroll he's not saying that anyone on here has an infinite bankroll guys. So, yeah, obviously I brought up that trade before. I don't know if you want to talk about that at all. Yeah, that particular trade is a good look at risk management associated with our algorithms.

Starting point is 00:31:55 So we have stop losses in all of our algorithms. And those stop losses are generally set around the 2% mark. But if you look at that particular trade, the stop loss that was employed, it saved you a bunch of money. And this is what we talk about, about emotionless, hands-free, you're not staring at a chart, you're not trying to nail it on your end as a human. There are parameters inside of our algorithms that are making this decision for you. So again, I'll defer to Tillman from a technical standpoint, but you're looking at a trade that saved you a bunch of money. And then in reality, the next trade and the next trade were the kind of trades

Starting point is 00:32:37 that took this into consideration again with the Martingale and made you a bunch of money at the end of the month. So Tillman, talk about this sort of risk management portion of what we do. Yeah. Well, when you go into a trade, you should already have your profit targets and your stop losses written on a piece of paper in front of you. Let's say you're not trading automation. That's math that you have to do. Unless you're just going to play emotionally and look at the chart and kind of guess like, oh, it looks like it's going to go up. Oh, it looks like it's going to go down. And so you take this chart in front of you, for example, you know, it started off incredibly positive, right? We entered along

Starting point is 00:33:21 and it went straight up and it stayed there and it tried to go higher and it couldn't and it crashed back down. And then there was that giant wick. I mean, huge wick that, you know, in most cases people would have gotten shaken out by, but it didn't hit the math parameter. So you weren't having to ride that giant red candle that you see right in the middle of the chart. And you weren't having

Starting point is 00:33:45 to emotionally go through that going, Oh, where's it going to stop? Is it going to stop? Am I going to, it's, it's all just math, right? So it came back up and what had happened, it ended up breaking down. Well, downside traditionally is a lot more volatile than upside. And so when you're down, yeah, elevator down, exactly. And so when you're down, yeah, elevator down, exactly. And so when you're when something is crashing that you're in a long on the hardest thing to do is to exit, in my opinion, because you keep thinking it's going to come back and you don't want to take those losses. And, you know, look at what would have happened if you had convinced yourself in this trade that that little choppy, you know, break in the fall was a bounce and that we were, you know, it was a rounding bottom and it was

Starting point is 00:34:32 going to come up. No, it would have gone down. And look at the wick on that second waterfall down. I mean, it's a huge, huge difference between the bottom of that wick and where, where the automation exited. And so it's just a prime example again, is like, why have to do the math during the most stressful period when you can do the math prior to the trade taking place and then set it and forget it. And then you have your disciplined approached approach, you know, being executed for you automatically. And that's really the advantage. It's taking on the human. And another advantage to, again, to working with us is you're not sitting there looking at that chart, by the way. So this is hands-free, hands-off, even eyes-off. So 90 plus percent of our customers aren't even looking at that chart. They're not running it

Starting point is 00:35:23 locally on their hard drive. They're using partners at TradeStation to effectively do those trades for them. And so the algorithm is doing that for you. You're not looking at it. You're going about your day. And so those choices are being made for you without you being aware until after the fact. So the emotion is truly removed from it. It's a, risk mitigation is a massive, massive part. Doing what we do, we started with liquidity and risk, right? How do we, how do we handle those two, those two issues from the get-go? Performance, okay, we'll get to performance. There's ways that you can affect performance that'll make people happy, but you got to give people access to their money at all times, which we do.

Starting point is 00:36:07 And you got to be really careful about risk mitigation. And that's what we do. Belt and suspenders. Yeah. There's nothing that gets you out of a trade quicker than a piece of automation. I mean, trading manually, you're going to have to manually enter those stop loss protections. You've posted them on the order book at that point for all to see. And so, you know, you can do that, but you're having to do that after the trade has taken place. And so that means you have to be at your computer. The disciplined approach that, you know, automation gives you

Starting point is 00:36:40 allows you to set that parameter, you know, a month prior to the trade taking place. And just to comment on the Martingale, the Martingale, it cuts itself off inside of our software at whatever cycles you want. You can actually inside of our software, turn the Martingale function off. And that way it'll be a unit, the same unit bet regardless of whether the previous one was a winner or loser. So that's the, again, the flexibility of having automation is that this isn't a set in stone. You've got to trade it one way. There's an infinite number of ways and parameters that you can change. You could,

Starting point is 00:37:15 if you did have an infinite bankroll inside of our software, you could say, I want to take eight Martingale cycles. That would be very expensive and you'd have potential liquidity issues depending upon what size of units you were placing but someone could do that and conversely someone could say i don't want to take any martingales unit size one unit size one uh and they could take two three and anything in between so it again it's about knowing what you want to have happen and then freeing up your time it's a force multiplier on the time side. If I said to you, trade the gap on the S&P 500, the Dow, the Russell 2000, and the NASDAQ at the same time,

Starting point is 00:37:53 that's a physical impossibility without automation. You can't manage that much math. You can't do the, unless you've got a team of people behind you that you're shouting to and they're crunching numbers for you and shouting. I mean, it doesn't happen is the the point all right yeah totally agree guys i gotta run uh the arch public you guys can see it right there the arch public.com is where you can check it out i know that most of you have at this point it seems like uh according to what we're seeing and how many of you have signed up and how many of you guys are happy with it uh so check that out it's

Starting point is 00:38:23 also obviously down in the description and you can talk to Andrew and Tillman themselves, you know, offline and, and, and figure this out guys. Thank you so much. Thanks Scott. Going to attempt to go brave the hurricane outside in Miami with my kids. That's what I got. All right, guys, I'll talk to you soon. Talk to you. Bye.

Starting point is 00:38:40 See ya. Let's go.

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