027 – Interview w Fari Hamzei of Hamzei Analytics

Hello and welcome to the Consistent Profits podcast brought to you by Inside out trading and Brian McAvoy where the focus is on consistency because when you have the consistent part down, profits become easy. Hello everybody. This is Brian McAvoy with a new episode of the Consistent Profits podcast. Today I'm really excited to be interviewing Ferrie Hamzi, founder of Hamzi Analytics. Hey, thanks so much for being on the podcast today.

My pleasure.

Glad to have you here, man. So that everybody knows Fari, he's a veteran in the space. I mean he's been around for a while and he's got a pretty cool history. I mean, you know, he's a graduate of Princeton University with a bachelor's degree in financial engineering and he studied equity and debt derivatives under financial pioneers like Jack Shelton, Ed Thorpe, Richard Rolb, Bob Geske. At the UCLA Anderson Graduate School of Management, he was a director of strategic planning at Northrop Grumman, their corporation's the Aircraft Group and served for 11 years on the board of directors at the electronic clearinghouse Echo. Now an intuit company, Hamza analytics is in its 22nd year of operation and serves both professional and institutional traders while providing custom proprietary analytics to a select group of hedge fund managers. Along with heading up Hamsa Analytics, Federated also is a top rank market timer which we're going to find out more about in this interview today. Again, thanks for being here and taking time for the interview.

My pleasure. Basically it says scarce resources allocation started in World War II in England and actually that's what led to design of radar and the basing options of the where the Spitfires and Hurricanes were how to defend against Germany or is operation research. You're dealing with scarce resources and you really do linear programming to optimize. For example, an example is trans shipment problem. If you're running ups, you're running yellow trucking which is no longer running. But things of that nature you got to Understand or, or FedEx for example, you got to understand or if you Manhattan, Manhattan, the project, you know, actually last night we saw it for a second time. That was on a war because you have limited resources during, during a war zone and the task is huge, task is horrendous. So the only way you can take that journey is to squeeze every penny out of the dollar that you're using. Put it at the right time and the right place. So that was, or now they call it financial engineering again, a lot of math. Of course we were doing punch cards, we were doing, you know, IBM, three 60s and 70s. Now you know you're doing that little Android, but it gives you the basics, you know, and a lot of FORTRAN programming. And then of course I did my thesis. Wasn't an OR, but was another problem which was the second stage compressor of F14 engine TF30 by Pratt Whitney. Well, one of my advisors, unbeknownst to me, was advisor to darpa. Defense Advanced Research Project Agency as a part of. And yes, Professor Jacobs and I had two advisors there. One was a business side and was an airplane side. Well, apparently he tells somebody in in LA at some lunch lunch and say hey, do you know this guy? Go look him up, look what he wrote about F14. Next thing I get a call and they said that, you know, this was a Sunday. On Monday we'll have aircraft for you to pick you up at Princeton airport. You're coming to la? I said excuse me, my thesis. Oh, you can ride on the airplane. Don't worry, your first class take care of you. They literally picked me up at airport Princeton. Took me to New York, put me on a helicopter, go to Pan Am building and then JFK flew first class with JFK to la. Got there, there was a car waiting for me. So my name died. I talked to the guy who was head of a Phoenix missile at Howard Hughes, head of our research, Dr. Chalmers. I met a couple of the VPs. I talked, introduced me to. Do I forget the name of a gentleman now? Oh, geez. John Paterno. Not Joe Paterno. Not the football guy. Masters in MIT in Aerospace and LGBT project. Of course back then they didn't call it B2 was Advanced Systems. Three years later, I'm working for him.

Wow.

Because of that, that state thesis led me to F18 and an F18 assault apartment. What's called Costner 4100. The vertical stabilizers. Drilling through composites. And behind this, titanium. Very complex problem. It's very simple. You look at it, trying to solve it, it wasn't and it was. The first two squadrons we had 24 aircraft on the line standing about a mile long. They weren't moving. We were having problem that cost. So I went back to my numerical processing, wrote a couple of codes, tried and tested. I said, okay guys, let's try this speed mill size, the million bit and the fluid, the coolant fluid, that combination, we start playing with those. I solved the problem in about four weeks, the lion starts moving. I got a huge promotion. Navy said, give this guy whatever he wants. Don't, don't argue with him. You guys the embeso you couldn't solve it. They had to be a college boy to fix it, so. But I was careful. I wouldn't wear a tie on the line. I would roll up my sleeves. You know, you couldn't walk in the assembly line looking like a college boy.

Oh, true.

Much less iv. Yeah, much like I gotta be careful. And then one day I had a call from another division, the Advanced Systems. And they said, bring your driver's license with you and your Northover ID for lunch at this executive dining room. I said, for what? You know how much? I have 12 people working for me. You know how busy we are. I don't have responsibility for three programs. What do you mean? They said, please don't ask questions. So I went to see my boss. I said, I got you. This is a call. What do I do? He looked at it, he goes, right? I would go to this call. I would go to this lunch. I said, why? He goes, you'll find out. Don't ask a question. I walk in there, a bunch of lawyers, you have to sign papers. That was the one that had my driver's license. So I signed papers. What am I saying? Oh, you basically giving your life away. It's a non disclosure from DoD feeling effect on you. Like what happened? I said, I work on the commercial product. It's like 7.7. F5 is an old project. F18 is new, but there's an inclusive right there. And we will run by strict rules. Need to know. They said, this has nothing to do with your past. This has to do with your future. Okay, sign the papers. Going in. Sit. Daniel. Gentleman. Very nice. Mossy, his name is unclassified now. Back then was classified of German descent. And he asked me a few questions and he says, you know, you're going to be working for me starting this afternoon. Said, excuse me. I asked, what do you do? He goes, well, I'm on the black projects. Once you get there, we'll tell you. Turn out to be the chief designer on B2 bomber.

Wow.

And I went, I left lunch with him, went to the new division. I asked him, let me see my office because it's being moved right now. When we arrived there, they were bringing my stuff in. That's how Northrop moves, okay. Especially on B2 project. I mean he's a guy who pitched to Casper Weinberger while Reagan was still, I think was President elect. And Catherine Werger was a defense elect, Defense Secretary elect that we need to build. I mean once they had their security clearances, we got to build this thing. We have to we have to stop the Soviets. And the pitch was we could break down the Iron Curtain and. Exactly. It happened about, about 10 years later. 40,000 people right in the campus. No windows, no offices, had no windows. We had the double fences, Inside fence was 240v, dogs and humvees with the TOW missiles on it.

Wow.

Yeah, well that's, that's how you protect this country. That's how you build something as exotic as that, you know, and we had, I only knew a little piece of it. Need to know only once yourselves. Right, right. I never saw back of the airplane, never until it was flying. So anyhow, incredible journey. Now, part of that you also said, hey, you've done all this good stuff, but you need some investment analysis. What do I need that for? I said, don't ask questions, we're going to send you through MBA program. I ended up going to ucla. I kind of wanted to go to Harvard or Stanford, but they said, listen, this is nearby, we pay for it. Don't ask questions. I walk in there, I meet Bob gy, if you know, if you know anyone back troll Bob gy, hello. And turned out to be the second infamous school on derivatives after U of Chicago, where modern Scholes used to work, you know, teach, and Fisher Black was from mit. So I welcome all of that and I became a sponge and my life was changed. About a year later I quit Northrop and that's the last W2 I've had. I've been on my own trading since then. I started with stocks, went to options and now futures, now market timing. Because I was involved with a user group in LA called Mask that John Bollinger started. I'm sure you guys know Bollinger bands. Of course he took to my liking, took me under his wing and ended up two years later, three years, I became the president of the club with 400 traders, all rocket scientists type. You know, LA has a lot of, you know, technology groups and companies, all that. So some of these old farts that were just retired didn't want to go shopping or play golf anymore. Shopping with a wife or golf, it was enough. They want to go back to their core competency, which is back on physics. And so it was a technical analysis group and I became president of it and I ran it for about 10 years, learned a lot, got a lot of know how connections. That's what really ended up to writing my book. When Wiley came in and said, can you write a book? And I said, no, because I don't have 300 pages of BS to tell you. Okay. And people are going to get bored. I don't want. Nobody wants to know what my dad. Which. What Chevrolet Impala year he had when he bought it. You know, that's how these guys go back. Like my grandpa did this please. And they said what would you think? I said simple. We'll put something like Market wizard except for the 21st century. This is 2006. We'll have eight to 10, maybe 12 writers. Each write their own chapter specific. And you can open the book, jump to the section you like and jump on your platform like train station fidelity, Teen Americans that programming so charts methods and on different subjects. So we did options, oil, silver, technical analysis, quantitative analysis, European assets. And it's been still selling. Actually Jim Kramer, which I'm not a big fan of of on TV usually take the other side of what he.

Says.

Back test that works. He called it the market wizard for 21st century. That's exactly. And we had 14 people in there.

Wow.

And it's been still selling. Now everybody sells as a Kindle because they under. They overpriced it and under underprinted it. Sold out like 90 days completely. So they did the paperback that sold out now schedule. But it's a. It's a classic book because it doesn't deal with a specific time or specific industry. It's a. It is a versus array of challenges that we have. So that's good.

Even though.

So even though it was written well. Sorry to interrupt, but it's. So even though it was written back in 2006 so it's still relevant today.

Yeah, right, right. Because first of all, you keep people that never published before. Like for example, the opening chapter is by Jeffrey Graff for 10 years in a row. He was taking analysis of the deck of the Institutional Investor magazine voted as that. When you come to cnbc, you see what happens. I mean everybody drops everything Jeff has to say he wrote the first chapter and. Or Frank Barbera, the guy who designed Xau the seal going on silver Index. These guys, my buddies I knew from Mass obviously I invited to give talks. Those relationships were built over years. So when I picked up the phone and I said listen guys, I'm gonna call you in. I'm calling favor. I played like, you know Tom Hagen in the Godfather, you know, constantly. I said listen, we gotta do this guys. Okay? Give me pages 8 charts. No more simple get to the facts. We want people to open the book and use it. They don't need to be 300 pages. And you can't be Published because we chose Wiley. Wiley which is the oldest scientific publisher. If Wiley is publishing you, you cannot have used it before. They obviously have what we invest investment in there unless it's fresh. So my stuff that I use there was put call ratios and a couple of my indicators that design. Why put car ratios if you follow Wall street week and I'm sure you did in your early days. Just myself myself I think we're probably the same age. He did what's called what the put call rate. Put calls and puts for to time the market. Okay. Of course at the end of Wall Street Journal and was a day late and it was total number of contracts I went to dollar weighted because now you have much better CPUs back there to do what I did back when Dr. Zwick did that doing the computer size of this house. You know now you can do it with a you know I9 or I7. So of course back then we had all the bigger machines. This is 2000-2000-2005-2006. We use that Xeon CPUs but you have big feed coming in from SIBO option data and you sort it by the number of contracts that trade per trade and price paid. So we do a dollar weight there. Why? Because all not all contracts were created equal. You actually see the pressure now there's a three day effect. As you know, cash settles in three days. You buy stock you have to pay for in three days. Or maybe it's two now. But I don't trade cash. But back then was three when when I first started was five. But options are daily. So the option market maker has a pressure on it and the way he hedges it depending how neutral he goes home is buying or selling the stock. Because of that phenomenon you can predict what happens in Chicago is going to show up three days later in New York where the stock is okay. I had such a record on cnbc. They called me Nostradamus at one point. Juniper Network tried to sue me and Tom Costello, my cohort at CNBC for having inside information. Are you kidding me? Why would I do that? People who do inside training are imbeciles. We use math and science and proof is repeating. Excellence is repeatability. It shows the signals in the book. There's like 10 examples of it. Other put car ratio went through and predicted. For example Ashcroft is going to take the this is attorney John Ashcroft will take the pressure on Microsoft off and say no more. Antitrust with you and market rallied. Okay. Even though that supposed to be priced in as actually A conversation with Tom Costillo. He says, hey, what are you talking about? Three days later, he called and said, I apologize. You were right. I said, this apology. We're working together, don't worry. But on Juniper, we called it downside. Put them call. So both side, we called for a downside. The stock was swing at 70 that morning. I came in and I said, we're short. Here's our reason, and we should be around 61, 62. We close at 60. Next day, they charge to us. You must have had some information that. Why did you say that? I said, I put this. We have an engine. The engine picks 500 names each day. The top 500 names in SMP, and ranks them by pressure on their option market makers and across the whole platform. Because you're going to have multiple market makers now in the future. In the option side, especially nasdaq, it does a sum of all of that and gives you a ranking. Then we go in the top five for the longs, top short, five for the shorts. It doesn't take a genius figure this out. Okay, so they make it too complicated. So a bunch of Hedrons start using it. Soros, Tiger, I mean, they were just. It was, it was a thing now. Then they found out that their data feed I was getting was. I was getting it, I was using a back door because they programmed it for me, the data vendor, and it would give me unlimited. I was paying 300 bucks a month, which may sound a lot for a day option data. But the company who bought them and reviewed everything because they were being merged into Archipelago Archives, they were in a rush and they gave me a lot of excesses, this and that. Good PR for them. At noon time, 2000 over there. The, the founder and then the guy who programmed for me is now CTO for Ken Griffin at Citadel, Joe Greenberg. Really good guys. But the new company came in and said, no, no, no, no, you owe us 10,000amonth. I said, what? As of now? Or you talk about in retrospect. Well, we can't be. But as of today, by the way, you need to pay three months. I said, thank you. I'm history. I'm not paying 30, 000 a quarter. So I left. And so. And then we varied that into different things like VIX and all that pressure on VIX options and all that. Now we actually use mixed futures a little bit more. Yeah. And actually, because now you have more volume, one thing I learned from John Bollinger was volume is a coincidence indicator. Yours, your indicator, your insight has no validity is not followed by volume. So if something is trading very thin, there's no signal, it's noise. So that's why if you get a signal, I got a spy or queue that's a good signal because it's widely traded. So that. Sorry I got sidetracked but that's, that's my history there. What we do now. Oh part of mass was a lot of market times long and short. There's a company called time to Digest out of a British Connecticut fraudulent son super rich. They actually built a very clever mousetrap. They do the contest for market typing on SPX on a closing basis only because there's no argument what that value is. What time you said and the cutoff is midnight. So on a closing basis of this tonight cut off is midnight. You say longer short or flat. And they took this 120, 130 people there, build it into a feed into their mutual fund. How many of the top 10 are long or short? They take a bias like that? Well, if you go to my website you'll see I would post this on my Twitter too. I may have sent it to your assistant at the end of. And then they stopped for some reason they're still operating but they're not ranking anyway. The last issue was the day Biden was inaugurated, January 20, 2021. I was ranked number one for last 10 years.

Yeah, I saw that.

You actually had a really good run.

Yeah, I look at how well the spread was with the second guy. Remember 120 people there. I killed the second guy. Imagine what happened to the rest of the list. I'll tell you why. Two trades, one majority of that move was a two three because there's a charter. You could see where the SIP was, where we were. One was the 2018 fight between the Democrats and Republicans. They shut down the government. Remember we got a signal in August that said the short is coming. We shorted in October. The signal is from sq. SQ signal is about four to six weeks ahead of you. I like leading indicators. I want to know ahead ahead, what's around the band. I lived in California, I drove up 11, I mean Route 1 up there coast. You don't know what the bands are. Right. Reagan talks about his speech but. But I want to see what's around the bend. And so we went to alert mode, went to get ready short. We shorted October, we covered Christmas Eve that and that there was a number of days that government was shut down because of that chaos. This is 2018. It was a massive move. I Mean we cleaned up. That was one. The other one was Covid. My dog Admiral Tico came to me and said, daddy, we're going to short this market. I said, why? He goes, two words. What was it? Chemical reagents. I said, where'd you learn that? Now this is a dog. This is a special dog. Admiral Tico. 1500 followers on Twitter Tiko. He had heard that we're going to be. Have be very short on chemical reagents for the testing. That means we couldn't test. If you can't test, you have no idea what kind of problem you have. This was February 12th. So I wrote a note to my members and said, boys, boys and girls, we're going to short term market. My own sister wrote back to me, says, you are nuts. You know, we're three days from the high of the all time high. You want to short this market? I said, no. He, please stay with the real estate. Okay, do your thing. She was the first one with the MBS for Milliken. You know the direction around Lambert Mortgage Backed Security. Very smart gal in real estate. I said, if I were you, I stick to real estate. Remember I put you in Netflix. You fought with me. Why? You went at 57 and I took you out 300. And you complained because it went higher Monday morning. Go back. You know, hindsight is 20 20. I said, listen, short this market, are we gonna hold it? He went three days against us. I was sweating. I swear I was sweating bullets. Like, what? And then turned 38% in five weeks. Fastest drop ever. And Admiral Chico comes in and says, spring equinox, Danny. We got it covered. The low was March 20th, actually Sunday, March 22nd. March was Friday. We recovered on that Sunday and our target was 18,000 on on Dow futures. You know why we had three targets from the top. One was 2018. Low the test there, because that was the biggest one we had a couple years earlier. The other one was the date Trump was elected because I knew the hedge funds are going to do this. And the third was 50 retracement. So no one rule, different rules apply. We took 203 and the timing is. We have these weekly webinars on our website. Some schmuck just a hot shot. This is the middle of the movie. We're in the move now. It's like, I don't know, like end of February, first few days of March. Hey, hotshot, when I said, listen, hold up. Either people are good at price or people good at time to the projection, okay? And one trade. You're Lucky you can't talk about one trade. It's a. You know when I get ranked, it was 400 trades, you know, long period of time. One trade means nothing. And you're telling me not just picked at the price that I'm trying to give you as a target. You also want me give you the time. And you want to be this trade we're in. Are you nuts? You go sorry. Come on. What do you think? I got frustrated. I said, okay, you know what? More equinoxes fall and spring, they always because of gravitational force. We. We reacted from it. We go haywire. Okay. My best guess. I'm gonna bet my last dime on it. That's my caveat. This clip would be a spring equinox. Well, when is that? I said, well, Persian new year. It's March 20th. So somewhere in there and target is still 18,000. I said, well, that's what's the next target we have? We give you three targets we already blown to reverse one. It's the second one. And third one was 14,000, which would be 50% retracement.

Right.

We never got that. That's Sunday night on the September March 22nd. Sunday night we print that we trade Sunday nights because of Globex. We traded on YM 18086. So I get on a warrant cover now. This is it cover now. And we covered everything. The next day was the low and it rally. We went long. Yeah. So we had to go long. So. And that was the time because the rubber band. Those are days when the rubberman's pulled. It's okay to flip. Sometimes you got to go flat and stay up. But it was okay to flip. And those two killed. It absolutely killed. Yeah, we're lucky.

How fun. How fun. Very cool, people.

It would give you a good feeling. Awesome for my family too. But not always easy. Not always fun. And sometimes they don't understand certain things. You gotta educate them, you know, like risk management. I can't manage 200, 300, 400 accounts. So each of them have to watch their own. You have a question, call me, write to me or come to the webinars, because I can't. I'm not your broker. I don't have access to your account. Don't want to be your broker. I'm an advisor. But I set the rules that families look for. I would do this, for example. If it goes up, I would do that if it goes down. So sometimes it's with without headache especially those will be maybe longer. But the newbies I didn't know I made 4%. I didn't know I should get out but 4% is pretty damn, damn nice. Okay. You know.

Yeah, true.

Well so, so with your, with your service analytics, hams analytics. So you work, you're working with professionals, you're working with individual retail traders.

Right, right.

Active traders. Yeah. I mean they've got good size portfolio and they're managing it. Timing is important. We also do some futures and those are done in the chat room with a live zoom and go to meeting. So and they have separate moderators they can manage. I can't get involved in that too much. We have a technical guy to solve your technical issues. We have have one gallon short of servers and then we have a moderator and they're very seasoned. They've been with me five, 10. One has been with me 20 years. So they know exactly to do and not to do this way allows me to drink some money for RD investors. All right. I have another company that's called TCF Tico again agro Tico in the dog Tico Capital Management and that does that. We manage reg D large, you know minimum is 500,000 for those in the future using again algorithm. Everything is run by algorithm. We don't go in there, buy here, sell there. The machine gets set up and you follow, you follow. And of course I really good crowd in our chat rooms because of the a few guys I know from Chicago. As you know I spent eight years there because I was teaching at SIBO and CME after I left la and I met with a number of these guys and they stayed with me and so they expect one of them was a big position in crude in New York. He trade crude but he was probably one of the largest single retail traders in crude. So the insight they bring to the chat room is priceless. And a lot of times I'm the student, I'm listening and I'm learning. If you don't, if you don't learn every day you're going to start dying. That's what happens. You got to keep learning. So but we do that and, and it's called or one algorithm we have does this big two years out now opening range breakout and it's also run by two system houses in Chicago. Hands off. You just put the money there. And trade school last year we did 360 net net.

Nice.

In the down market. In a down market we made about 30amonth.

Nice.

But here's the reason I, I think, I think I know myself. I get emotional. Machine does it, machine doesn't have a, you know, headache. The machine didn't have two margaritas last night. You know, it's just like I did because I went to see a movie. I'll be, I have another margarita. No, but point is that the machine is. Doesn't have that time of a month. You know, the machine operates, it knows the rules. For example, statistically we know you shouldn't trade Wednesdays. Why? It's middle of the week. The volume is a you especially today's after expiration also. And again I think, I think there was divine guidance, I swear from my life how I got passed through these stages and to be here now to trade futures. But keeping in mind what happens, what the option activities on them impact is understand volume, have these indicators, understand market timing, don't all blends in. So it's a good challenge. The future side is nqs. We're about to do something with es. Why volume is low. When there's volume is low, the moves are exaggerated because you're cornering somebody. Okay. Or five or something. So NQ has been really good to us. But also you gotta have tight stops and that's what people are not good at. Machines are. Machine doesn't understand should, should I give it another five more handles. It doesn't know out is out. Boom, you're done. You step for the next, you wait for next trade, preserve your capital and you fight another day.

Very cool.

Well, so you have a lot of different services that you offer though, right? Because you got a notice on your site. You got like, you got a prop day trading, proper auto trading. Of course you get your, your market timing. Now is the market timing, is that, is that, do you have, is it like a newsletter service signals it's a.

Web page there and you, you log in for that. We do the charts on Wednesdays. Open to everybody. It's kind of a freebie, but it creates conversation. People come in some kind of marketing that's easier for the user. Newsletters, actual trades. And you have to log in to get that. And we send the email saying there's updates. We do not give the trade on an email because we won't forward it inadvertently to a friend, this, that, but this will know. We just tell them there's update, go to the website, take what it is and they know our sequence. And, and then as we change trades, as we go to a new trade trade number changes. There's a couple of particular charts posted. There's a logic, but in terms of what, what guides us into our bias is about 8 to 10 trade charts. We have never changed that all these years. Why you start changing charts or indicators, you creating multi factor model again, statistically you're self defeating. You keep what you got. You must have a very good reason to drop something. Indicator or add indicator. You know. So I, I run multiple monitors. I may have an indicator. I mean there's one, one of the screens are off right now behind me because that's how my new work is done. I, I design by, by decision. I turn it off this morning. We don't advertise what's in the works yet because we don't know how it's going to work or not. And the best test is live test, not back test. Live test, right. So we'll look at that. Those charts are reviewed. We put a video on our YouTube channel, YouTube.com hemsian analytics. Those are posted the freebies. You go through that, it shows what our calls were. We have been pounding the table saying you gotta stay short, you gotta stay short. And people are saying you're nuts. I said, well we'll see. But if I look at the data internally, see I don't look at price alone. Price is probably the last thing I look at. I'm always looking at internals and SMP has the most internals. Think why spx? The cash has the most internal in terms of tick thread vix for it. Let's see. Advanced decline, 52 weeks high, 52 weeks low. You can build models and then look at lead lag studies. Okay. For example, 52 weeks high on low says we gotta go down. Why sell whenever he wants it? I buy what nobody wants and sell whatever it wants. So I'm looking at fear and greed. And that's how we build our futures too. Our future models. If they're running their graphical model running live, but they always deal with fear and greed. We kind of asymptotically extrapolate and give a target price because nobody knows where the prices are going to go. But you have a probabilistic price where the fear is going to be and where the greed is going to be. So we buy the fear, we sell the greens.

Very cool. Very cool.

So now you said that you, you generally like working with people with like a minimum account size like 500000 or more. Are you open?

Money management part. But I'm managing discretion and I don't charge any fee. I only I get a percentage of their profits. Okay, well then. But people in the chat room just pay subscription. They manage their own money. We don't ask them what size. We give them some rough suggestions of what they need with different program. One of our. One of our most popular product is our indicators or indicators which built us to get to the timer of the decade. Has been around 20 years. I had still have a guy from Putnam his mother in Boston. He was a trader for and then portfolio manager and then he become an exec. He still pays that quarterly fee for one of my indicators. That was the first one introduced, I swear to you. February 2002 called CI. We call it Central Intelligence. CI, you know, what do you call oxymoron, you know, Central Intelligence. Yeah but the damn thing is so good on the terms. It actually shows you where the turns are coming. So at it's because the leading indicator, remember momentum is study is a leading. The problem is that you can't give you a trend this. I use limit theory to combine the two. So you have a trend following lines that has momentum built in. Those two always got to fight with each other. If you use a little bit extra math, you can resolve it where that turns. You know, market is going to turn within a bar. So if you want to get 3 minute bar, get 3 minutes to act. 3 million futures is a lifetime. But in Q moves, I mean big rewards means big risk, right? You cannot go up the risk ladder and assume. I mean I'm saying yield ladder and assume no risk. There is no such a thing. Yeah, only a scam artist will have that. If you're pushing your yield up, your goal for your yield, you better accept more risk. And in a normally distributed life, you know, with efficiencies that we have now, that's where the reality is. So this mitigates that.

Very cool. Very cool.

Well, it sounds like you got some cool stuff going on. And I find it very cool. And I'm glad that you explained the financial engineering because yeah, that's. That's more of an actual engineering kind of background that you got. Rather than just the finance. That's more commonplace today.

I swear to you my good. The finance I learned was that like with Jack Shelton at ucla, at mba, not at Norton Princeton. Princeton was all engineering, all physics and math, you know. And when you build these in your life as we go to school, anything, whatever the subject is what we build frameworks. If you don't have those frameworks in, you won't be independent, you won't be able to solve problems. You always need somebody else's students. You know, at some point you gotta lead, you know, I mean. But they threw me. That F18 problem. Nobody said what the solution is. They said that's what we hired you for. Go solve it. I told him, bring me a cut. I swear, a couple of nights I slept on the line on a cut because my place was too far. We were working around the clock. It. It got worse. On B2, I had Sunday afternoons off. We worked six and a half days. I was in middle management. You could not show up, they just fire you. Yeah, we had no vacations. I mean, every two years we get a couple of days off. Well, that's what it takes to defend this country. The people now who are our futures are the kids who our future. They have no clue, absolutely zero clue how this country is defending. I paid my dues. My dad was a pilot. Pilot, pilot. He paid his dues for his motherland. Okay, I was born there, but I came here when I was a kid. You know, this is my country, so. And I'm grateful. It opened a lot of doors for me now, but every time there was a knock on the door, I opened it. I didn't procrastinate. I took advantage of doors that opened for me. Of course, Princeton was a big help. Norfolk was a big help. UCLA mask, Wiley. When I booked my book, came out, it went nuts. I mean, we sold out within a month and a half. Opened a lot of doors for me, so I'm grateful. No complaints.

Very cool. Very cool indeed.