Rambo has been a folk lore legend in the Australian prop industry... he came to the Australian floor (from USA) and traded the Aussie bonds/stirs. Recently he was featured on Chat with Traders. 99% of the interview is fluff and generic motivation. He tells you to "believe in yourself" and "let the market come to you". Unfortunately this means nothing for the average trader. He also says the key is to be observational. Doesn't tell you what to observe... this is rough to hear for most people. Youtube interview: "I've traded millions and millions of contracts over the years and I've never used a stop" He spends only 1-minute talking about how he trades. My friends have asked me to translate, into laymen terms, how John trades when he talks about it at about the 51:00 minute mark... He calls it "Price spread divergence". Its not new... Aussie 3yr v 10yr Curve Spread We have 3 charts. The Aussie 3yr, The Aussie 10yr, then the Aussie 3yr-10yr spread. Strategy: Every session, you observe what the Bonds are doing and the net-change of the yield curve. As you can see, The Aussie 3yr chart is going higher and higher, but the 10yr bond is not breaking higher. The "reason" is not too important, it's just the observation that matters most. What he does is observe the net-change of each session. For illustrative purposes: Session 1: Bonds are rallying, the yield curve (3yr v 10yr) finishes +1bp. 3yrs are stronger! Session 2: Bonds are rallying, the yield curve is up +2 bp Session 3: Bonds are flat for session, yield curve flat 0bp Session 4: Bonds are rallying, but yield curve is still flat 0bp At session 4, this is where you may sell the 3yr-10yr spread. This is what someone might call "reading the market". You are observing that, even though the Bonds are continuing to rally, the yield curve is running out of steam. It's a basic play between Leg A and Leg B relationship. Philosophy: This trade can be done across any spread and its what call a form of observational relative value. However, the the next part is working out where you enter... where you exit... do you scale in?.... what about figures?... how do you know you're wrong? You can also do this with the STIR spread flies if they decide to move interest rates. You would observe how the spread is moving vs. the individual legs.