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Rick D's avatar

I didn’t understand 90% of what you wrote but I appreciate the detail and information. Hopefully one I can understand what this means and how to pay a few bills off of it. Cheers!

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Capital Flows's avatar

plug it into chatgpt

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AJ's avatar

Great write up as always.

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Capital Flows's avatar

thank you !

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Nn's avatar

I wish you can go into the details of how to measure the quantity of money, how the quantity of money has evolved over the past 6m, 3m and 1m, and a forecast

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Aham's avatar

What would you use as a proxy for liquidity impulse for a trading view script?

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Aham's avatar

Referring specifically wrt this section:

IF macro liquidity = positive THEN trigger bullish. IF macro liquidity = negative THEN triggers bearish.

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Capital Flows's avatar

There isn’t a single datapoint for liquidity which is why it’s difficult to map in a single indicator.

But yes functionally if liquidity is positive then bullish and opposite if bearish. However remember there are times like 2020 when macro liquidity increases a ton but assets go down because growth is collapsing. So there are qualifications

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Capital Flows's avatar

Read all the macro primers on this

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Capital Flows's avatar

But that’s not pure liquidity

There’s limitations

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Aham's avatar

Thanks for your response. None of the datapoints that could be used as a proxy for liquidity are sensitive enough to generate enough signals trade imo, e.g. CB balance sheets, M2, interest rates, real yields, currency swaps (USD/JPY - this could work?). Perhaps VIX could be used?

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Capital Flows's avatar

If you’re trying to find a super rough proxy, use implied volatility with the vix, move index, fx vol and crude vol

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nikos's avatar

Great article Sir .I recently discovered your Substack and found your articles incredibly helpful—thank you!I have a question regarding trade execution. I often struggle with executing my trades optimally. Sometimes I buy too early, while other times I wait for a price level that never materializes. I haven’t been able to find effective strategies for execution.Could you recommend any books or articles on this topic?

Thank you for your assistance!

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Odin's avatar

🔥🔥🔥🫡🍷

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Conks's avatar

🫡

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