Guys,
Regards $YM. You have to understand one thing, and I’m willing to die on this hill. They keep selling you imaginary stuff to make you think you have so much to learn, so you’ll always feel subpar and keep searching for the next “secret” to become profitable. Now $YM is suddenly super popular. Why?
Because SMTs are all over the place. And when you apply the “triad,” there will always be some SMT. That way they can always say: “Look how great I am, I spotted one of the 100 SMTs, I’m better than you, come learn from me.”
First of all, the correlation between $NQ and $YM is around 0.44. In statistics, anything below 0.7 is considered only moderate correlation. That means it’s too weak to draw consistent conclusions, and won’t be used in finance.
This is a textbook case of Overfitting.
“Overfitting is when a model learns its training data too perfectly, including irrelevant noise, and performs poorly on new data. It memorizes details rather than general patterns, making it unreliable in the real world.”
Another thing: up until maybe 4-5 months ago, no one even mentioned $YM. Now suddenly everyone is trading it. Please explain what changed. Did we really discover something new after decades of markets? And how come zero verified traders who’ve made hundreds of thousands trading indices never touch $YM?
These sales people don’t even know how $YM is priced (it’s a price-weighted index, unlike $ES and $NQ which are market-cap weighted) and it shows. Structurally they cannot be correlated.
Please, don’t get scammed.
One Product.
One Session.
One Model.
Until you’re profitable. Then you can start experimenting.
If @4500px influenced your trading in anyway, consider donating to his funeral expenses.
Any donations remaining will be given to a Mental Health Charity/Suicide Prevention Organisation, both to support others in need and to honour Tyler’s memory.
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