GxT | Asset Synchronization Series: Part 1/3

Summary

The presenter introduces an intraday and higher-time-frame trading framework called asset synchronization. It uses relationships among correlated markets to filter SMT divergences—instances where correlated assets make different highs or lows.

The method focuses on identifying reversals, assessing whether an apparent divergence is likely to hold or fail, and trading a lagging market as it catches up with a leading one. The presenter describes the approach as mechanical and high probability, but provides no systematic backtest or independently verified performance data.

Markets and instruments mentioned

• Equity-index futures: Nasdaq (NQ), S&P 500 (ES), and Dow (YM). The presenter says traders should include YM in the comparison. Typically, ES is the middle-strength market, while NQ and YM tend to show opposite relative strength.
• Oil-related futures: CL (crude oil), RB (gasoline), and HO (heating oil).
• Gold and silver: XAU/EUR, XAU/GBP, XAG/EUR, and XAG/GBP. The presenter recommends using feeds whose daily session opens at 18:00, rather than 17:00, so candle boundaries align with futures sessions.
• Forex: The euro, GBP, and dollar are mentioned as the basis for a correlated-market comparison; no specific currency-pair tickers are given.

Trading framework

• Compare a triad of three correlated markets and identify the leading, middle, and lagging assets.
• Frame potential reversals around the presenter’s “universal models”: internal-to-external, external-to-internal, and overlapping ranges. The examples mainly focus on range highs and lows.
• Treat an SMT at a relevant high or low, or at a fair-value gap, as an initial sign of a possible reversal—not as a standalone entry signal.
• Seek two-stage confirmation after the key-level divergence. The second stage may be:
  • A swing-point SMT;
  • A precision swing point (PSP); or
  • A PSP followed by another divergence.
• Use strength switching—a change in which market is relatively stronger or weaker—to help confirm reversals and synchronization. For reversals, the presenter generally recommends trading the asset with the higher-time-frame failure-swing SMT. When a lagging asset switches strength to catch up, the presenter recommends trading that lagging asset.
• Assess whether a divergence is likely to hold or fail using premium/discount positioning and proximity to the target:
  • If markets expand together and the lagging assets’ failure swings form near the target—particularly in premium for a bearish setup—the divergence is presented as more likely to fail, potentially allowing price to continue toward the target.
  • If those failure swings form in discount or around equilibrium, the divergence is more likely to hold, depending on context.
• For a likely continuation, look for the lagging market to resynchronize through an SMT fill, strength-switch PSP, or swing-point SMT. The presenter emphasizes gaps, displacement, and a continuation signal after a retracement.
• A strength switch may not be necessary if the leading asset has a reason to continue toward a nearby relevant high or low. The presenter lists displacement through the level, consolidation after reaching it, or a retracement capped by a correlation break as signs that an apparent SMT may not indicate a true reversal.
• Use higher-time-frame context, session timing, and candle profiling alongside the setup. The presenter says a large prior expansion continuing through Asia and London can make a New York retracement more likely. A 4-hour reversal candle, they say, can be confirmed with a 30-minute or 1-hour swing formation.

Examples and cautions

• The presenter reports a gold trade that returned about 2.5R, estimating the realized outcome might have been closer to 3R with a better fill.
• In another example, the presenter says a trade was approximately 3R in open profit, moved the stop to breakeven, and was stopped out before price later moved in the anticipated direction. They emphasize that a sound setup does not guarantee successful execution.
• Examples include CL price action from early January, a trade dated November 14 (year not specified), and trades dated January 14 and Friday the 23rd. The recording is described as being made shortly after midnight on the 24th.
• The presenter cautions that higher-time-frame setups can be disrupted by unpredictable macro events, such as war-related news. They also note that not every reversal will produce the preferred strength-switch signal and recommend patience while waiting for it.
• These are the presenter’s trading claims and examples. The video does not establish that the method has a particular win rate or that results are reproducible. No explicit “not financial advice” disclaimer is stated.

Disclosure and promotion

The presenter promotes using code GXT with prop firms, saying it provides discounts and joking that they would rather take money from prop firms than viewers. This is a promotional disclosure; the video does not detail any compensation arrangements.

Presenter and sources

Presenter: Garrett / GXT

Sources and concepts credited or referenced: Quarterly Theory (credited for the asset-synchronization concept); AM Trades (relevant swings and continuation concepts); ICT (referenced as a broader trading source).