© Ed Seykota, 2003 - 2005 ... Write for permission to reprint.

Frequently Asked Questions

TSP: Trading System Project  ...  Breathwork  ...  Charts

Answers

At one point the urge to stop was overwhelming as I felt like I was going to die if I continued. While terrifying, this turned out to be just another feeling to experience. I also experienced another feeling where I was a bad, angry and evil person. It was very productive and seemed to bring closure to my Breathwork experience.

An interesting note is how after Saturday's session I felt that I could have gone for another hour, and then realized my session in the hotel room went for 58 minutes exactly.

Thanks again for your support.  Thanks Ed for your vision and acceptance.

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The benefits of TTP cut across every area of my life. As a husband, father, trader, human being, everything. Maybe the most effective way to highlight the changes is to describe how my life was before TTP and now.

As a husband I used anger as a defense to keep my wife from communicating and growing the relationship. I would also make her feel guilty as another strategy to shut her down. Now that we have opened the communication paths, my wife feels very comfortable talking about our relationship and things she does not like about my behavior or how I treat her. Our relationship and love for each other has grown far beyond my expectations.

As a father, I was never able to express anger in healthy and appropriate ways. I always found myself losing my temper and expressing anger in a very destructive way. I also would not allow the children to express their emotions to me, as I was unwilling to receive them and used their _expression as an opportunity to tell them what they should do or how they should feel. Now I find I am very interested in how they feel and in helping them learn from their own experiences and feelings. I notice huge improvements in my parenting and I notice even greater improvements in my children's confidence, self _expression, and problem solving skills.

As a trader, TTP helped me move from a roller-coaster-riding day trader, to a long term trend follower. As a day trader I would get to experience frustration and anger as I engaged in the make/lose cycle which I was so good at creating. Starting in 2003, I have gravitated toward long term trend following and have developed a system and set up a fund which reflects those values.

One very big shift in my life has been a growing sense of connectedness to my surroundings and other people. In the past I brought an envious, judgmental, and critical attitude towards others. That has given way to a humble and empathetic outlook. To touch a life, open eyes, or give hope seems like the greatest gift one can receive or give. As an extension of that value, our family is now exploring mentoring programs for troubled youth.

The moment of now is a concept which grows with my exposure to TTP. I used to experience much regret that I would spend most moments caught up in thought, mainly about the future, and not actually enjoying the current moment. My wife's smile, my daughter's laugh, the beauty of the sunset, the wind blowing the trees, I find myself totally absorbed by these simple things more and more. Life is more vivid and beautiful than ever before.

TTP also seems to have ended my 23 year relationship with tobacco. I find that I no longer want or need to feel the way tobacco makes me feel. In the past when I would try to quit, I would look backward and mark time since my last cigarette, or look forward and say I will never do it again. All I know now is that right now I have no desire.

All these improvements in my life are part of a trend toward growth that did not begin until my introduction to TTP.

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He unsuspectingly (for me) walks me right into a hot seat. I become flush all over, he is saying the same thing that you stated in the fax, he sees the real me, that has been my issue - plan plan plan, the best planner in the world. The tribe encourages and validates me through an excellent hot seat. The are relentless and patient, it's brilliant. I come out of it with a better AHA of intention and now I understand what you mean when you said "Put some tension in your intention"
 

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Completing this, the word strength comes to me next. I realize that this is actual physical strength. Up to this point, my solution to my life situation is to take on everything and work frantically trying to finish all of it. I am receiving an alternative. Focus, strength - I know these are new and better guiding principles for my life. At this moment, the word love comes to me. I see my wife, my daughter and others who touch my life and realize how I have not let that love flow, especially, how I have not let them know. I resolve to do so.

I participate in the December 2005 Incline Village Breathwork weekend. My desire for focus is even greater, though not part of my everyday life. I resolve to work on that. My snapshot clarification process is tough going. Focus isn't a snapshot. I hold out for focus. Another tribe member suggests a snapshot of 'focusing one hour a day.' On the face of it, this seems an insufficient amount of time, and as it is a snapshot, I commit to it. I take this into the Breathwork session. When I come out, the world is much clearer across my whole field of vision. I am much quieter inside. I have no desire to write or draw anything - to see the world so new is enough. I know I have focus, though I have no evidence that it is operational. Over the next few days, I finish projects that I have carried with me for more than six months. Most important for me, I 'just do' them. I find I am focusing much more than an hour a day. My emails are crisp and clear about what I want and what I am willing to do and not willing to do. I feel I can write a book I have put off for years.

Most of all, my life is, again, a journey and a process of discovery and transformation. These are among the motives for first taking this path of personal development - along with, I am sure, my original pains. Through all of these experience, I become an expert at it - competent at my craft, conservative in my outlook. As a expert, my path is one of incremental innovation rather than revelation. Until I practice TTP. As a practitioner of TTP, my expert abilities are useful, and they only a part of me and a part from my path - one that now leads into a fresh wilderness of opportunities which is myself and my world.

Thank you, Ed.

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Depression

I had a great hot seat last night at the [City] Tribe. Entry points for unhappiness, depression, and holding myself back.

Ed says every feeling has a positive intention.

I get that, but I don't see any for chronic depression.

What are possible positive intentions for depression?

http://www.drnadig.com/feelings.htm

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I am more peaceful, accepting of my situation, and my life is more fulfilling.

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Is the TSP still alive, taking a holiday hiatus, a goner, or something else ?

Thanks,

I am currently contemplating a section on drawdowns, including having to respond to margin calls.

Book Testimonial

Dear Chief Seykota,

I've committed to going through your FAQs posts from the bottom (Jan 2003) up.

Tonight, in one of life's interesting little there-are-no-coincidences, I'm for some reason drawn to the link to the Trading Tribe book, which is odd, because I already own a copy and am in my second reading. Low and behold, I see my short book review / testimonial right under the Charles Faulkner review.

Thank you for the nice honor.

Thank you for the testimonial.  This work spreads by such testimonials; the encouragement that you lend by sharing your process helps others take the first step.

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Dear Ed,

the other day I send you an email with the subject "Hi there". It occurs to me that it probably gets spam filtered which would not be my intention.

You can determine your intention by noticing your result.

So dear Ed I always get into this type situation with my other relationships.

What is there which is unresolved, kindly throw your lights of wisdom.

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Your way of helping others "learn" how to help themselves appears infectious. Would it, therefore, be true that the easiest way to seek "positive change" (perhaps not the best way of putting it) in others to first seek positive change in one's self, thereby creating a willingness of others to try?

Simply, is "leading by example" a commonality of the tribe? From what I can garner, this appears to be the path of success exemplified by the tribe.

Taking it to another level, is it the desire of man to be led or to lead by example? I believe the latter. Can someone of clear mind and spirit be led? History teaches us that anyone can lead. The annals are full of lunatics and the like that have had a "following." But are there examples of those whose mind and spirit were free being led down a path of immorality? Or is that statement in and of itself, an oxymoron.

Best,

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I am wiped out in the early 90s.

In late 1996 I am close to being wiped out again and wonder why I can’t get big winning trades because I try very hard. Then life happens. My dad throws away a trend following system, saying it doesn’t make enough money. I see it on top of a lot of other papers and find the numbers interesting. I ask him if I can take it. He agrees. I examine it, it is long-term and simple. I like the test results. I overcome my dislike for mechanical methods in no time. I also learn about fixed fractional position sizing. I do a lot of testing, it tests well over a very wide range of parameters and markets which gives me confidence and I believe it is robust, I like the juicy cagr/max drawdown ratio and I trade it. I am profitable from the start in 1996. I second guess the system signals in 1997 and break even. I decide I must be disciplined. I set up my software for daily signal generation so that price charts are blank. I do not see the charts, I only get the signals and I am determined to do it this way for as long as I need it. I trade several accounts with good success. For example one account makes >6000% until 2003.

I realize that a profitable method is missing during my unsuccessful years and that no amount of psychology helps if the trading method is not profitable. I also learn that a profitable trading method is not useful if the psychology isn’t right and I don’t put the method into practice. I understand that my job is not to forecast trends but to transport the theoretical system performance into the reality.

I have a ball trading. I love to catch big trends. I am in many of them. I cut my losses.

My vision threatening retinal disease gets discovered in 1999.

My dad dies in 2002. My system is in a 40% drawdown which is within my tolerance and test results and in itself is no problem for me but adds to the other stress. Two aunts fight serious diseases. I am called to come to the hospital intensive care in the middle of the night for one aunt who is comatose. She dies. I don’t want to get into more detail but the whole thing is traumatic and I see that modern medicine has its downsides too. My eye situation deteriorates shortly thereafter resulting in bleeding into one eye. Meanwhile, the system comes out of the drawdown and makes new equity highs and I am on board.

I have treatments (couple thousand laser shots, ouch), more eye bleeding rest of the year and early 2003. I go from 5% vision back to 100%. My eye doc tells me I am always good for a surprise.

In 2003 I want some rest and rent a house in a paradisiacal spot for a long vacation. I am out of the markets when a huge drawdown hits. I get back to trading after the vacation and cherry pick trades and I learn that common sense is a good thing in trading too. I also learn that a system that tests well for decades can go into >90% drawdowns.

I mainly do trades that appear good to me. I do not follow my system mechanically anymore and that saves me financially. I wonder whether I still trade my system at all when I don't follow it completely. I do not know how to code and backtest the way I trade. My vision deteriorates. I care more for my eye condition than for trading. I take matters into my own hands and try some things for my eyes, also alternative treatments. I find an excellent eye doctor. I manage to avoid vitrectomy. I do not know which treatment works or which combination of the things I try.

I only trade lightly in 2004 but I catch trends and enjoy it.

My eye doc tells me in 2005 that I now also have cataract, too early for surgery. I understand that my vision deterioration is due to cataract not due to macular edema. The doc calls cataract a children game compared to the retinal disease which he says is actually improved and he doesn’t see me going blind. I feel relieved and take that as a go signal and fulfill a long held plan - I move abroad to a place I like.

I have peace and quiet and test many trading systems. I keep researching, testing, learning. For example: I find that long-term EMA (lag) crossovers together with shorter-term breakouts test well. Long-term lags alone also test well. Short-term signals alone do not. I find good and stable systems but I am not satisfied with the cagr/max drawdown ratios and wonder whether I find a solution or at least an improvement that I like. I long for a system that has the simple elegance and the great test results of the system I trade from 1996 onwards but which blows up in 2003. I want a system that provides good results and that I can trust. I settle for less and trade the best solution I come up with as a bread-and-butter solution but keep searching. I wonder whether cagr/max drawdown ratio is so important because returns come fairly regularly but high drawdowns infrequently. I find an alternative to cataract surgery and am informing myself about it. My wife is with me all the way. And that is where I presently stand.

All the best,

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I feel that the trading is very similar. Trend following rules are here for everybody for years and traders who use them to prove that they work.

I have problems to follow my trading system the first 4 months of trading. I do well for sometime and then do everything wrong. I am emotional with my trading and try to predict the future all the time. I read motivation books, peak performance for traders books but nothing seems to work. I visit www.tradingtribe.com  and realize I have emotions in knots to experience before I can trade according to my system. I do understand the process but as ED SEYKOTA writes:

"While you can read about the theory of TTP in this book and maybe come to understand it, you cannot develop expertise in TTP be merely thinking about it. The only way to develop skill with TTP is by practicing it. The best ways to practice are to participate in an ongoing Tribe and to attend a TTP Workshop."

I look forward to being the best father and trader I can be.

I commit to write e-mails about the progress of our new Trading Tribe as well as my own progress as well.

Good trading,

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Wants a Mentor

Ed,


Please forgive my tenaciousness, but as you know there are no guarantees for tomorrow. I have [amount] and I'm asking you to mentor and teach me how to trade successfully. I'm willing to agree to whatever fair compensation arrangements you propose.

	Trade with the trend
	Let winners ride
	Cut losses
	Manage Risk

A pretty good rule of thumb for beginners is to put less than 10% of net worth into high-volatility enterprises.

No Studies


Hi Ed,

I can't access the studies part of the site " <under cunstruction>" is the error message.

Yes. The studies link is not currently active.

Only one member who usually has a hard time getting into his feelings does not do good work. He makes some progress after our breath work in September. At this meeting he gets into a form and I get excited for him, thinking that he is having a great hot seat, but then all of a sudden he just stops. He talks about how he makes great progress using DIM, but he does not get into his forms during our meetings.

Overall it seems our tribe is continuing to make progress.

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Thu, 1 Dec 2005

Re: Trends, in TSP

"Say we compound one penny at a three percent per year interest rate from year Zero-AD to the present"

Just an interesting observation that 1 BC precedes 1 AD , so not only does the past not exist as you always say, zero-AD does not seem to exist either ;-)
 

Clip and Text: Popular Mechanics, circa 1954

One morning in late September 2005, Deb was riding the public bus to work. She was minding her own business, reading a book and planning for work, when a security guard got on this public bus and demanded that every passenger show their ID. Deb, having done nothing wrong, declined. The guard called in federal cops, and she was arrested and charged with federal criminal misdemeanors after refusing to show ID on demand.

Source: http://www.papersplease.org/davis/
 

Chart: Comex February 2006 Gold as of 12/9/05

Quickly a smile, and again the familiar feeling of giddiness, that I have only come to experience through the application of TTP.

I'm amazed. I'm actually excited about the opportunity to face myself, my feelings, and my fears.

Without having to needlessly waste time and energy repeatedly feeling, angry, sad, resentful, hurt and afraid - I am able to devote my time and attention to further clarification of my vision. I am experiencing an increased willingness and ability to take the next right action, and it appears as though I've received a front row, 1st class, seat to the best game in town, Life.

Thank you

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