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Questions

(Quotes from Ed in prior FAQ's in Red)

Wed, 28 Feb 2007

Hedges Sell Off

 
Hello Ed

That was some sell off we had today wasn't it?
Its the first time I have seen a market dump so swiftly from being so high.

I started this morning with 62 open long stocks most of which have wide stops from 15% up to 55% in some cases with my very small volatile stocks.

So after watching the first hours action here in UK and deliberating how to handle it, a few more down points convinced me to enter a partial hedge
( around 20% of my long value ) in the FT-SE250 midcap index.

Later as more weakness continued to bash my account down about 5% I sold a batch of FT-SE 100 futures, making a 60% hedge, and by 2pm still more weakness convinced me to go market neutral with 100% hedge. This last hedge was done with the German MDAX Futures.

So after feeling real fear-awe-shock etc. for the first time in ages, I patted myself on the back for remembering to be disciplined and went out to my table tennis match after the market closed.

Some time previously I had left my pre-arranged hedge stops on the FT-SE 100 Futures with a 24 hour broker, and these were still in place after my initial hedging of the morning. At about 8pm I received a text message indicating I had also been filled on my short entry stop!

Wow, the Dow was in free fall and I was net short.

I am so pleased that I kept the discipline to place these emergency hedge stops all those weeks ago, and I reckon tomorrow morning will turn out profitable even though some of my longs are sure to be stopped out, and I am expecting the FT-SE 100 to open a possible 80 points down.

Of all my 62 longs open, only one was stopped out during today and because I have spent so many long hours choosing these stocks on a combination
of technicals and funnymentals, I really don't like to bail out of them all in a blind panic.

Instead I enjoyed the gradually transition from long to short in those 4 stages today, and think its a much better way than just to completely reverse an entire portfolio all in one hit, when so often the market recovers in a day or so, or I sell the low of the move.

The moves today were absolutely shocking, and I would be very interested to know how other traders handled it. I closed the day with a loss of around 7% on my portfolio which would have been about 11% had I not shorted the indices. ( I am using a geared method, and was around 3.7 times geared long )
Now my portfolio is geared up 8.14 times, but the actual net gearing is less than 0.4 (short) of the account size.

My risk is now all about correlation, and that was my reason for using 3 different futures contracts to hedge.

My moral is, even though there are only 4 position variables in trading: Long, short, neutral, out, It's nice to slide slowly from one side of the fence to the other instead of jumping straight over it in one go.

I watched the man who predicted the 1987 crash on Bloomberg today, again predicting "its time to sell", and surprisingly Alan Greenspan commented that the US could "slip into recession". This is most unusual to get these calls while to markets are so very close to their multi year highs?

Another very annoying thing about days like this, is that day trading trend systems work phenomenally well, when mostly on more normal days they don't perform.

As I am so busy protecting my investments, I never have time to make a fast buck on these whammy moves when they are actually happening!

I can see there is more downside to follow, but the long term Dow and SP500 charts still look pretty bullish for the long long term, so I am not selling my long stocks until the stops hit.

Thank you for sharing your process.

The Essential Hedge for a Falling Stock

Tue, 27 Feb 2007

Commitment

Sir,

1. Please correlate, for me, trend following, the commitment of being a trader and trading with a system.

You might consider identifying any feelings that stand between you and following a system - and then taking those feelings to your Tribe as entry points.

Commitment is not a Feeling

it is the willingness

to keep your word

no matter how you feel.

Clip: http://www.mondera.ph/store/Wedding/

Anniversary-Bands/Ladies-Plain-Metal/

14k-Yellow-Gold-Comfort-Fit-Womens-

Sun, 25 Feb 2007

Thoughts on Now

Thank you for sharing your process.

The Past and The Future

are cultural myths

Physical attempts to access them fail.

Attempts to explore them in novels

generate inconsistencies

and leave loose ends.

Sun, 25 Feb 2007

Receiving

Ed,

I have a question with regards to receiving others. I practice receiving others and over time I have become better at this and do not get enrolled in other peoples drama so much.

Trying to get people into their feelings is process management.  Accepting people the way they are, including their not wanting to get into feelings is receiving.

You might consider taking your feelings about wanting to control your fiancée to your tribe as an entry point.

People Who Need  to Be in Control

sometimes put themselves at risk

of losing it.

Clip: http://www.eurosport.com/football/

Sat, 24 Feb 2007

TTP Supports Birth

of a Baby and of a Company

Hi Ed,

I wanted to thank you and the IV Tribe for all of the support and great work you did with me in regards to my preparation for the pregnancy and delivery of our third son. I truly was stuck but, as you may recall, you all helped me with a breakthrough and I walked away with my ROCK!

I have been a foundation of strength for my family ever since. My son was born via emergency C section after ten hours of labor. The s--- the fan once again my friend, but we were ready for it Ed! We got r done! We took it with as much stride as possible and both baby and momma are doing terrific! She is healing very well and very fast all things considered and our son is a happy and peaceful young lad. I must admit he is pretty darn good looking too!

I can’t thank you enough. The TTP work we are doing at [Firm] is truly revolutionary and we are changing the business and industry of running money for the better. To boot - We are going to have a lot of fun doing it too and will help countless others along the way!

Thank you for sharing your process.

Some Fathers Know

their role in childbirth

lasts longer than

a few conceptual moments.

Clip: http://www.stressfree.com.au/

Sat, 24 Feb 2007

Rock Star

Thank you for sharing your process.

Petroleum Calcinations

Clip: http://www.alibaba.com/catalog/11530808/

Thu, 22 Feb 2007

Model Account

FAQ does not reveal personal information or offer specific trading advice or recommend specific trading system parameters.  See Ground rules.

Thu, 22 Feb 2007

Hoffman Process

Hi Ed,

You might like to take a look at this attached article from a magazine called Psychologies (Mar07 issue)

It reads to me as though it has some resemblance to TTP / Rocks Process, I thought it might interest you since until today I have never heard of Bob Hoffman (process)


Extract from article…


“The days were filled with demanding emotional tasks, from journal writing and role-play through to guided meditations and group discussion. Through ‘expressive body work’ (a way to release feelings physically), I discovered that long-held emotions were not just thoughts, but stored energy. I was stunned to realize the impact my past had had on my physicality. My facial expressions softened and, after the first few days, I held myself differently. I started to feel wonderful. I was shedding fearful beliefs and old resentments. I felt as though I was coming alive for the first time.”

Clip: http://www.hoffmaninstitute.org/

Yes, I can see some similarities - also some differences.  For example, in in TTP, we don't try to "release" feelings so much as find their positive intentions.

Bob Hoffman

Hoffman's therapeutic model includes

the notion of "Quadrinity,"

the interplay of body, mind,

emotions and spirituality. 

He also uses the notion of

"Negative Love"

and the equation;

adoption + rebellion = conflict. 

Thu, 22 Feb 2007

Pre-Label Rocks Process

Hi Ed!

Here is a follow up on yesterdays Trading Tribe. Two people attended the meeting. We had the following Tribe schedule:

1. Drumming
2. Check-in
3. Hot seat
4. Rocks Process with Role-playing
5. Snapshot Process
6. Trading Process

The first three steps had a very quick gone through. It has become an easy process, even the hot seat. We seem to speak less nowadays and go more into the forms. The receiver also says less than in the beginning.

After this introduction we went into our new area - the Rocks Process. We had both written down rocks (on small papers). My rock said "The Unaffected." I explained that I try to show a very rigid front, even though I feel hurt.

This is an issue I have discussed, on the FAQ, a couple of times (last yesterday). 1) I explained an old situation when I responded to the situation with an angry attitude, and 2) role-played the scenario. After that we came up with 3) alternative responses.

At first I was very eager to try my latest snapshot to respond with optimism, like "good" or "great". As we discussed these responses seemed a little bit naive. My receiver asked my to validate the feeling and try to explain how I felt instead.

This actually seemed to take care of both my feelings, so I could let them go, and communicate back that I don't approve of that behavior. 4) We role-played the situation a couple of times with an increasingly clear picture of how to respond in accordance with my objectives. 5) The new name on my rock is now "Validate and communicate feelings".

Now we switched roles.

My receiver now became the Rocks introducer. He had written "Pleasing" on his rock. He mentioned the moment this rock was delivered to him.

We role-played the scenario, and came up with alternative responses (here we are allowed to be analytical). After that we role-played the scenario a couple of times. Then we moved to a situation when the rock was used in a more recent situation. We role-played also this situation with the initial scenario and in the new way without the "pleasing" rock.

We didn't have time to give the rock a new name but I think it should be something like "constructive" or "flexible".

The rocks process took quite some time in a positive way. We just ran out of time as we progressed in the role-playing.

Thank you for sharing your process.

What you describe sounds like an attempt to use rocks as props to support thinking about your  personalities.

The TTP Rocks Process is essentially emotional and out of control and aims to re-program deep gut responses.

At the IV Tribe, we do not attempt to identify the Rocks in advance or to apply labels to them.  Medicinal Rocks emerge naturally as form patterns during the Snapshots Process.  We then "heat them up" and clarify them through role playing.

You might consider taking your feelings about being out of control to your Tribe as entry points.

Part of the TTP Rocks Process

includes going out of control

in order to identify

the Medicinal Rock

Clip: DOD

Wed, 21 Feb 2007

All Women Need  is Money

This photo was taken at a competition in June. The competition was between 9 women who had to have makeovers. They had every possible beauty treatment available to them over a period of time. Look at the before and after photos.

Conclusion: There are no ugly women, only poor women! If all women had the money ... good grief!

You might consider taking your feelings about women to your Tribe as an entry point.

Wed, 21 Feb 2007

Quotes

In FAQ it says, "quotes from Ed in Red".

Fri, 23 Feb 2007

Taking Responsibility for Feelings

Hi Ed!

I have mentioned some problems regarding interaction with my family. Now I have come up with a snapshot of how I want to respond to emotionally hard situations.

Thank you for sharing your process

One Group Recommends This Device

to assist children to identify feelings,

as in "Today, Megan is feeling happy."

In TTP,  we see feelings

rarely last a whole day

unless they are in a deep k-not.

Another Group Recommends This Device

to help children express how they feel.

In TTP we support people

expressing their feelings directly,

by developing and expressing forms.

Clips:

www.teachnet.com/lesson/misc/

feelmag042099.html

http://pbskids.org/clifford/shared/images/

Fri, 23 Feb 2007

Post Workshop Feedback

Noticing the Positive Intentions of Feelings

After going through situation in which I honestly use emotional control panel, my favorite benefit is feeling ownership of my actions. I find this surprising. I rarely feel like this.

Recent case and new response:

I really experience fear (reasonably so) and anger (my blood boils) in work situation (Boss's partner off charts disrespectful -- gut response is to choke him).

I am ok with it (fear) for first time. I really hate fear, but it is definitely a good thing. I stay with the emotions, experience the forms, and express my emotions to individual in reasonable manner. The issue dissipates.

The boss's partner is no longer in drama with me. (seems like magic and something I never experience before) He is now looking to experience emotions via drama with someone else.

Thank you for sharing your process.

Thu, 22 Feb 2007

Feelings of Rejection

The Tribe leader may be considering your willingness to experience your feelings. You might consider taking your willingness to experience you feelings of rejection to your the Tribe as "entry" points.

People With Rejection K-nots

typically set up dramas

to justify their feelings.

Mon, 19 Feb 2007

Redbook on Feelings

The Redbook article gives suggestions on "anger management," "feelings training" and "cooling off" as ways to make "bad" feelings go away.

In TTP we look for the positive intention of feelings.

From Redbook:

Mon, 19 Feb 2007

Global Warming

Hi Ed,

You might find that the amount of "hot air"  that politicians are recently releasing into the atmosphere about Global Warming seems to correlate nicely with Global Warming.

Skillful Politicians

really know how

 to warm up a room.

Clip: http://www.abm-enterprises.net/

Mon, 19 Feb 2007

Violent Interaction Between TTP

& Marriage Counseling

 
Ed:

I was thinking of calling you to discuss the effect of TTP on my marriage counseling (and marriage), but I ultimately decided that posting an email would be beneficial for the collective tribe. This is very difficult to convey via email for a number of reasons, but I am going to give it a try.

As noted in my prior FAQ, my wife and I have been in couples counseling for the better part of our nine year relationship and have been through a raft of therapists.

Though the relationship has steadily worsened over that period of time, we consider our current counselor to be the best of breed. Though most of our counseling sessions are hostile affairs, rife with accusation and blame, we often leave impressed by her knowledge of psychological theory, and her seeming ability to divine the many causes of our failed marriage.

Oddly, in spite of the hostile nature of our counseling sessions, and despite the continuing deteriorating of our marriage, we regard her as an indispensable link holding us together. We place our hope in her ability to fix us.

At the recent workshop in Reno I go through several TTP processes, including the Rocks Process. Through those experiences I am reconnected with many feelings I have grown to hate. I begin living in the moment. I begin enjoying feelings typically labeled as "negative." I cease blaming my wife for the way I feel, or my various problems at home or at work. I begin a process of healing and living.

My first counseling session after the TTP workshop is attended without my wife. Alone with the therapist, I tell her of my experience at the workshop. I detail the theories underlying TTP. I note the myriad changes since returning from the workshop. I share my feelings. First she expresses surprise, and then states that she is glad that my situation has improved.

She asks how this impacts our counseling. I state that, apart from its entertainment value, I am no longer interested in delving into the cause of my feelings. I state that my goal is to accept responsibility for my feelings, recognize and accept them, and use them as functional tools. I ask her to assist in bringing my feelings out. She expresses willingness to assist in my process. The session ends.

My wife and I attend the next session together. We talk about our emotions, and take turns sharing and receiving. The session is remarkably free of any hostility or drama. Though our counselor is unusually quiet and uninvolved, my wife and I think the session is very productive. It ends early (a rarity) and we go home feeling warm toward each other (another rarity).

Over the next week I become enmeshed with problems at work. I experience very strong emotions not fully experienced at the workshop, such as anger, stress, and agitation. I work to accept and feel these emotions. It is tiring without a supporting tribe, and I experience intense, recurring feelings of fear and confusion.

As I struggle with my feelings my wife begins to think I am purposefully withdrawing my love. She clearly does not like receiving my feelings when they are negative. She tries to manage my feelings in an effort to make me "feel better" and re-acquire my attention and love. She does special favors for me. She flatters me. She cooks special meals she thinks I will enjoy. When I express negative feelings in spite of her efforts to improve my emotional state, she becomes openly hostile.

At the next counseling session my wife is in full attack mode. She denounces my efforts to experience my feelings, which she labels as selfish disengagement from the family.

When I tell her that I am simply trying to reconnect with my feelings, she states that she is sick of my feelings. She states that I am making her miserable by constantly endeavoring to feel my emotions. When the diatribe ends, the counselor asks me to respond.

Though my frustrations levels are high, I encourage my wife to share her feelings. This produces a burst of insults and blame from my wife. I begin to feel myself flooding with anger, so I consciously resort to my Rock. I tell myself that I do not need to explode and leave the room (my past coping mechanism), which I am feeling desperate to do. I choose to disengage and listen.

To my surprise, the counselor then attempts to counter my strategy and draw me into the fray.

The session goes something like this:

Counselor: Do you have a response to what your wife just said?

Me: No. My wife is blaming and attacking. I am happy to hear her feelings, but I am not hearing anything right now but attacks. Right now I am getting very angry and will not respond to attacks.

[silence]

Counselor: Have you disengaged? Where are you?

Me: I told you. I am willing to share feelings. But I am not responding to insults and attacks.

Counselor: OK. Share your feelings.

Me: I am angry. I am frustrated. I get very angry when my wife rejects my "negative" feelings. All feelings are important. I explained this to her. But she is not receiving my angry feelings.

I am open to feelings, but not attacks. I feel like this issue is more hers than mine. All I am doing is feeling my feelings. My wife is trying to pull me into a drama I do not want a part of.

Counselor: But aren't you now doing the same thing. Aren't you attacking your wife. I am not sure where you are right now.

Me: I am right here.

[extended silence]

Counselor: Where do you want to go with this?

[growing frustrated]

Me: I am right where I want to be.

Counselor: Do you understand that you need to engage in this process? [very frustrated]

Me: I do not have to engage in this process. This process is destructive. This is drama. I will share and receive feelings. But I will not receive her attacks. I am making a choice, here.

Wife: You see. He is unavailable. All he cares about are his own feelings. I am so sad. I don't even know him anymore. [She begins to cry]

During this particular colloquy, I experience the most intense feelings of frustration and anger. I feel a tension that burns across my entire body. It is as if an unstoppable force (my wife and therapist) is hitting an immovable object (me and my rock). The session ends a few minutes later without any meaningful change or resolution.

On the car ride home, I am not speaking to my wife. I am on the cell phone attempting to resolve a pressing business issue. The burning feelings of anger and frustration persist. However, I am also experiencing intense feelings of doubt and confusion about my rock, my feelings, my experience at the workshop, and my future. My mind begins to swim.

While I am talking on the telephone I begin to notice a sharp pain when I take deep breaths. By 2:00 a.m. that morning my back is in spasms. I cannot take anything but the shortest breaths without feeling a searing pain in my back. I take muscle relaxants for the next two days and lay in bed. When I awake my back feels better and my intense feelings (emotional and physical) begin to subside somewhat.

As I write this post, I continue to experience those same feelings of anger and confusion, though to a lesser degree. I feel angry toward my wife for not being able to receive my "negative" feelings.

I am confused about how to bring my wife more fully into the TTP process.

You and your wife have a nine-year pattern of ménage-a-therapist.

The therapist is helping you hold your relationship together and is also a form of medication to protect you from feeling deeper feelings - like your feelings about not receiving each other's feelings.

In Reno, you come to see that feelings all have positive intentions and you have an experience of sending and receiving feelings without judgment - and without reacting.

The session in which your counselor is quiet, your session goes well.

When your counselor tries to force you to "react" to each other, the old patterns ignite.

-----

TTP works by receiving and acknowledging others, not by invalidating others when they fail to receive you.

You cannot force someone to receive your feelings, particularly if they consider them "negative."

You cannot "process manage" someone or "fix" someone without invitation or without starting a fight.

You can make a decision to receive all your wife's feelings, especially her feelings of not wanting to receive some of your feelings.

You can make a decision to receive your own body feelings, especially what your back is trying to tell you.

When you come to appreciate the positive intention in every communication your wife makes, and in every feeling your body generates, you may attain the zero point.

In Boxing and in Marriage

the job of the referee

is not always to end the fight.

Clip: http://news.bbc.co.uk/2/hi/

Mon, 19 Feb 2007

Apprenticeship Feedback

Sat, 17 Feb 2007

Levitation Disk

see Radial Momentum


Mr. Seykota:

You write in your web site about radial momentum:
"The Bernoulli Principle assumes (1) a closed-loop system of varying cross section, (2) constant density of the fluid and (3) no flow motivation.

Standard physics textbooks contain many curious explanations for fluid flow phenomena.

The Classic Venturi Tube Demonstration

Note: The pump motivating the flow and the exit chamber receiving the effluent are conspicuously absent.

Also note: The heading "Inviscid, Incompressible Fluid Flow" is unrealistic.

In the diagram, the pressures at the two ends of the are equal.  Therefore, there is nothing to motivate flow.

To motivate flow, you have to have more pressure upstream.

In that case, the pressure is greater in the chamber to the left of the pinch point, falls just down stream from the pinch point, due to radial expansion of the fluid and then rises to ambient pressure at the effluent opening.

-----

The Old Scientific Method

The New Scientific Method:

Recent examples:

Global Warming;

Minimum Wage in the US;

Price Controls in Venezuela.

Clips:

http://history.nasa.gov/SP-367/f28.htm

Sat, 17 Feb 2007

Rocks Process Feedback

Dear Ed,

In line with my commitment to report my experience to your FAQ readers on my RP (Rock Process) at Incline Village:

Before I begin, I want to thank all the members of the Incline Village Tribe for their incredible support and encouragement, also for sharing their wisdom that is handed to me through my new rock.

The tribe spends at least 4 hours working through the Snapshot process, this process proves to awaken and heighten many feelings within those tribe members who are live with feelings.

My personal experience results in tapping my foot repeatedly on the floor and crying, I am unable to speak, words are difficult to deliver, the tribe encourages me to do more, I do more, I also log this feeling for the RP session.

RP Experience

Ed suggests that my rocks process start with a “role play” he is aware of a very important meeting I intend to have, and he is also aware of some strong feelings of sadness about this meeting.

Two members of the tribe ‘play’ key executives who might be attending the meeting, their job is to try to simulate the meeting as best they can, they both do a great job. I find that this role playing activity promotes more “conscious” thought and I find I am unable to locate any live feelings.

During my role play I show a “form” which is to move my hands, Ed sees this and asks me to do more of this, crank it up, moments later I am fully shaking both hands and arms. This movement promotes pain in my shoulders, though this pain I experience memory recall.

I recall walking around at school alone with a heavy rucksack on my shoulder I notice I keep swapping shoulders to carry it around because its so heavy.

This memory extended to further insights into the difficulty I have “interacting” with other children at school and later with other students in my academic life. I notice I avoid attempting to engage “socially” in large groups, I also notice this pattern extends in my adult life. Although I have learnt ways to deal with this situation (usually avoid it), I have never attempted to understand the origin of my behaviour, see its positive intention embrace it and at the same time acknowledge new ways to approach the experience.

We ‘role play’ the most vivid experience I can remember, this is me at school attempting to play with some other children, this attempt fails, I am rejected and I shut down, go dumb and walk away with a ‘sad’ smile, (this process is my old rock/my old way of dealing with the experience).

Ed asks me to try to locate any person close to me that might have similar ways of dealing with this sort of experience; I notice that my father carries these tendencies. I also report to Ed many other similar experiences where this has come up throughout my life.

Having role played this experience the tribe now has enough resources to come up with a whole new set of ways to respond to this, and any other similar experience. We list the following

Be Empathic
Radiate Contentment
Smile on approach
Appreciate and value yourself
Check out why they are leaving
Get really good at the game
5% of the time walk away, don’t take it personally
Negotiate
Use Humor
Listen to conversation with interest
Offer new games
Get feedback, tell your feelings and show emotion
Breathe and consider resources
Join a common interest group
Find new friends through networks of friends
Notice your feelings – keep them turned on
Offer new ideas and resources

The tribe re-runs the role play and this time at the point of rejection, my father appears and offers me a rock that I ‘should’ use to deal with this situation, I reject it, I don’t want it, I feel it’s not the “only” option.

We then role play again, this time a tribe member plays messenger whom I can trust and offers a new “empty” rock containing new ways to deal with the experience. The rock is empty BUT if I want, I can fill it up with the list of responses produced by the tribe. I accept this empty rock and fill it up through squeezing the rock with each new approach on the list.

The new rock feels good, we test the new rock by running the same role plays, I notice in my role play I no longer feel stuck right before interacting with others. I am able to positively and confidently present my findings during my role play meeting too.

When we are complete, I thank each role play member and release each character from the role-play.

We all “check out” I am delighted to hear that other tribe members can relate to my experience, and find it insightful to themselves, perhaps I am not the only one to benefit from this process.

I notice I feel something has shifted within that feels naturally good, I now have new resources to deal with these experiences, and I fully intend to use them.

Thank you Incline Tribe, Good Job!

On a side note Ed, it seems that that this process is very powerful, and requires TTP knowledge and some form of Rocks Process ‘experience’ from at least one participating member of the tribe. Personally having experienced this first hand, may I take this opportunity to emphasize to your FAQ readers that those intending on using it might consider that their tribe have a ‘Crystal’ clear understanding of the process, and that they understand the importance of acting responsibly, diligently and sensitively when processing this experience.

I wish all the FAQ readers good health and happiness and that they all find their Right Livelihood!

Perhaps the Crystal Precedes the Rock

 

Clip: http://www.smokindragon.com/

Fri, 16 Feb 2007

Investing With Your Company

Hi Ed,

I don't know why, but I was surprised to hear back from you. As you know, a "cult like" reputation has been created around you. Since it seems to have been created by other people, rather than yourself, it is probably well deserved. I sometimes listen to your "Market Wizards" CD to keep me motivated. (And no, I am definitely not subject to idol worship.)

I've recently contacted a number of "trend following" capital management companies and was surprised to see that some of the better known ones have recently gone belly-up. Others have made no profits (zero!) during the past 3 years of the US stock bull market. A few require a $500,000 minimum investment and a net worth of $10,000,000.

About me: I'm 51, very happily married for 30 years, one son, one grandson, I meditate 2-3 hours per day; I'm healthy, happy and I love life - and I do not fear death, nor do I fear the financial markets (Ed, which one is worse?). I am completely sold on "trend following" and I would be a long term, hands off, no-panic investor.

I don't know if you would be willing to work with me or if you would be willing to accept an additional account with an initial investment amount as low as $100,000? (Or what would be your minimum if...?)

Anyway, thank you for your reply and I'll look forward to hearing back from you.

-----

Ed writes:

I wonder what you have in mind.


-----

Contributor writes:

Hi,

These days, one futures contract can move several thousand dollars per day - so with diversification into, say a dozen instruments, you might normally experience daily fluctuations of 5-10 k, sometimes much more.

If you want to keep your risk per trade at about 1/2 percent, then, setting 1/2 % to $5000, you get 100% = $1,000,000.

If you trade a $100,000 account, you might have to experience 5% entry risk.
 

I would have to know a lot more about you before agreeing to subject you to this kind of volatility.

Trading Futures Without Sufficient Capital

can be a wild ride.

Clip: http://www.werenotafraid.com/

Fri, 16 Feb 2007

System Research: 40 x 11

Yes, You can test a trading system on a data base of any number of markets over any length of time.

A back-test does not generate a "valid picture" of the (non-existing) future.

Your feelings of confidence come from within you, not from the test results.

Fri, 16 Feb 2007

Moving On

Thank you for sharing your process

Nechville Meteor Banjo

Sadly, this is about the only thing

Bella Fleck and Ed Seykota

have in common.

Fri, 16 Feb 2007

Childlike Emotionalism

It takes a lot more integrity, character, and courage to be a conservative than it does to be a liberal. That's because at its most basic level, liberalism is nothing more than childlike emotionalism applied to adult issues.

Source: http://www.townhall.com/columnists/

JohnHawkins/2007/02/16/

Fri, 16 Feb 2007

Trading Systems

Regarding your previous comment

Deer Ed,

Regarding your comments (please see below), I would like to put my question in a different way if possible; Do you think all mechanical systems have to work in all markets in order to be robust, including stocks?

I do not have much clarity on the identities of "many traders," the meaning of "all markets," or the meaning of "robust."

In addition, FAQ does not tell people what they "should" do.  See Ground Rules.

You might consider re-writing your question in SVO-p.

Thu, 15 Feb 2007

Experience Positive Feelings

In TTP we hold all feelings have positive intentions. 

The feelings we call "negative" are typically in k-nots. 

Fri, 16 Feb 2007

Tired of Being the Snack

 

Having sustained yet another painful loss on today’s futures market, and having experienced some amazing ‘non-coincidences’ as described below, the Under-Fred Network is speaking very loudly to me these days that it’s time - just plain time, finally, and with zero resistance on my part … to undo the k-nots. So I’m coming in, Ed - much the worse for wear and tear, I confess.

Gosh-honest truth is, I’ve been a fan of yours for years. Like a lot of folks, I’ve read most of ‘the’ trading books and read of various traders, but none that seemed to ‘get it’ as much as yourself.

Despite my shortcomings, in some amazing ways you and I have much in common, including my sense & understanding of our life purpose - but clearly have much at variance as well. You’ve been wildly successful, as have I in some ways, but my guess is that unlike you my “drawdowns” – both personal and financial – have gotten to the point that it’s just too painful to avoid this any longer.

I have a wife and daughter that depend on me, and I’ve been letting them down for too long. Years. At least 7 years, in fact. Now, today, this moment, I feel like I’m letting down my best friend and futures-trading business partner. So enough is enough - I’m coming home.

Without feeding the ego monster, please permit me to say that I am truly not the complete mental idiot that my trading record and personal choices would otherwise indicate. I graduated from a major university with a degree in Computer Science, and with some distinction (and then some failure). I served honorably as an officer aboard nuclear-powered attack submarines during the Cold War, and with some distinction (and then some failure). Financially, I made millions of dollars working in the Internet software industry - and then had lots of failure.

Whatever rocks I’m carrying, they’ve been getting the best of me time and again, and I’m just flat tired of it. My conscious mind is aware of a few rocks, including some associated with a brief but apparently powerful bit of childhood abuse.

There’s no escaping the fact that I’ve exhibited some seriously self-destructive behavior. But while I’ve seen some dramatic improvement over the last couple of years on a personal and spiritual basis,

I’ve been unable to consistently trade profitably, and I know on some level that this is something I have to do, or, at a bare minimum, go through.

Though I am employed in a partnership today with a good friend, have a paid-for home over my head, a car that works, and a wife and daughter that love me, I am for all intents and purposes broke in terms of liquid cash - and a living testimonial that the Under Fred and Fred can serve up just as much drama as it takes to force the dropping of those painful yet familiar rocks. This is all my responsibility, but I clearly need help.

There is no cause and effect, I know that by now, but whatever it is inside me that’s been eating me alive is done having its snack as far as I’m concerned.

You might consider taking the feeling of something inside you eating you to your Tribe as an entry point.

The Wasp, Ampulex Compressa

injects venom into the cockroach's brain

to neutralize it's escape reflex.

The wasp then takes the passive cockroach

by one of its antennae

and leads it back to the wasp's burrow.

The wasp lays eggs on the roach's' stomach,

the larvae burrow into the roach,

and emerge later as adult wasps.

Experiencing Your Feelings

at a Tribe Meeting

can help you find what's eating you.

Clips:

http://www.synthstuff.com/mt/archives/2006_02.html

Thu, 15 Feb 2007

More Important then Trading

see previous Sun, 11 Feb 2007

You might consider taking your feeling about offending others by telling your truth to your tribe as an entry point.

If You Have a Rock

about standing up for yourself

you may feel

you are being too assertive

when you tell others how you feel.

Thu, 15 Feb 2007

Managing Risk

Risk is a combination of the possibility of a loss and the magnitude of the loss.

We register risk in our bodies as a feeling of fear.

One way to manage various forms of risk, including prospective risk, initial risk, open risk, and unconscious risk it to make sure your feeling of fear is an ally, fully functioning on your emotional instrument panel.

In our medicinal culture, some people attempt to medicate fear, rather than manage risk.

Professor Moreno, University of Virginia reports on research on locating and modifying the "fear gene" stathmin that expresses in the amygdala.

Others feel that emotions inter-connect and are not simple properties of specific locations in individuals; emotions arise out of social interactions.  As such, emotional modification is a Tribal endeavor.  Inspirational leaders know all about this.

In general, people with willingness to experience fear and other feelings are better risk managers than those who have fear in k-nots or fear under the influence of narcotics.

You might consider taking your feelings about risk to your Tribe as an entry point.

One Positive Intention of Fear

is risk management.

Clip: http://www.bcysth.ca/photo_gallery/