Contributors Say

Tuesday, November 10, 2009

Cause and Effect at Work

Dear Ed,

I thought you would like this sign of cause and effect:

Clip: http://www.flickr.com/photos/16117146

@N03/3640790282/sizes/o/

Tuesday, November 10, 2009

Letting Go and Getting Results

Thank you for sharing your process - and for your insights on the mechanics of getting something better.

Tuesday, November 10, 2009

Giving Life to a New Being

Thank you for sharing your process.

Sometimes the best way to change others is by working on ourselves.

Tuesday, November 10, 2009
 

Starting a Fund

Dear All,

My big wave is to start [Name] in 2010.

At the Workshop I commit to the following:

1. Speak to 3 potential clients every weekday.

2. Raise $500k by year end to start trading in January 2010.

3. Finalize legal, incorporation documents and business plan.

4. Optimize trading system.

5. Develop another trading system for the fund.

6. I report my progress every two weeks.


Since the workshop I do the following to work towards achieving my big wave:

1. I complete on average 3 calls a day (some days I make 4-5 calls some I make 2) to friends, business associates and potential clients. I also speak to cap intro firms and ex-colleagues about raising assets with through them.

2. I have some commitment from family members about investing in the fund during the
initial stages.

3. I spend time developing corporate documents, fee schedules and agreements for the fund. I also work on the business plan and marketing material with my wife.

4. I do not spend much time on system development since the workshop. I plan to go into this within the next week.

I use the below quote as my guiding principle in establishing [Name] and moving towards right livelihood:

Excellence is an art won by training and habituation.
We do not act rightly because we have virtue or excellence,
but we rather have those because we have acted rightly.
We are what we repeatedly do.
Excellence, then, is not an act but a habit.

                                           -- Aristotle
 

Tuesday, November 10, 2009

Trading Software

Dear Ed,

I am making progress on my goal. I can feel all of you out there and you help keep me accountable. Thank you for that.

1) My excel spreadsheet shows that I works 15.5 hours on my goal. This is a good start.
 

You might consider coding your system in Excel until you get a gut feel for how backtesting works "under the hood." 

Tuesday, November 10, 2009

Workshop Follow-Up

Dear Ed,

Last week, I send my goals out to my support group and I notice that you are missed, so here it is. Thanks for everything.

I develop and utilize a trading system with 35% return with 0.8 MAR by February 1st, 2010.

1. I send out weekly emails logging my time spent, completed tasks, “AHA’s”, and miscellaneous info as I create my system.
 

2. In February my system is up and running. I give monthly updates that include my trading diary, and weekly balance and risk statements.
 

3. I spend two hours everyday working on my system: studying, writing code, back testing.
 

4. I hit my monthly progress goals.
 

5. I continually deal with my feelings and attend TT meetings.


My Support Team:

* Observe and comment on my growth as a trader and the creation of my system.
 

* Periodically, I throw out some questions. If you have an opinion on them, then please answer.
 

* Offer any suggestions, thoughts, or criticism you feel help this goal.

Timeline:

Nov 2009:

1. I purchase trading software.
 

2. I read two books on technical trading. I get comfortable with terminology and theories.
 

3. I utilize software. I create a trading system that I successfully back test.
 

4. I work two hours everyday on creating this system.
 

5. I open my futures trading account.
 

Dec 2009:

1. I develop relationships within my support group who help optimize my system.

2. I decide on the basic system structure.

3. I spend two hours a day writing code, back testing and studying.


Jan 2010:

1. My trading system is far enough along that I feel confident in using it to trade.
 

2. I deal with my feeling as I am trading.
 

3. I work two hours everyday writing code, back testing and studying.


Feb-Dec 2010

1. I keep a trading diary that I share with my support group.
 

2. I monitor my daily balance and risk statements.
 

Tuesday, November 10, 2009

A Note About His Throat

Dear Ed,

Thanks to everybody at the workshop for creating such a productive and helpful environment.

Going into the workshop one of my goals is to get rid of this constant discomfort in my throat. After reading books and studying a bit my plan is to go there, let it all hang out and do whatever it takes to experience these k-nots. In my mind, I feel I have an idea what my issues are and the process experiencing my emotions. While I am right about accomplishing this goal, I am totally wrong about what it is and how beautiful experiencing it is. Below is an outline of experiencing the gift of my throat discomfort.

I prepare for the hot seat by trying to “think about the feeling of thinking”. Trying to solve this impossible puzzle wears my mind down until it shuts down and I am able to FEEL!!! The next day on my first hot seat I keep story telling to avoid feeling. I keep trying to tell my story until I find that the cause and effect of my story does not matter, just my feeling in the now do. It is wonderful. I go through and experience the feeling in my throat. My “Aha” is simply feeling and that my mind has nothing to do with it and my stories are medicine. This is huge.

I still have discomfort in my throat. On Sunday morning at 2AM, after everyone has done their hot seats, I approach Ed and a let him know that I still have this discomfort in my throat. I do not expect the response I get. The following is what I remember of the conversation.

“You do not have any discomfort in your throat. That is nothing. It is just something you made up to bring attention to yourself. When you walk into a room you steal attention from everyone. I wonder what it is like to be your wife and child with you taking all the attention and not giving any. I can tell you did not get any attention as a child. I will tell you what, if you want the discomfort in your throat to go away, then serve others and give attention to others. If you are serious about wanting to get rid of your throat thing, then serve others. Before we meet tomorrow morning, give me a list of three people you served.”

(Obviously, Ed did a better job with SVO-p in his dialog).

It is 2AM and for the next 45 minutes I walk around the casino, looking for people to serve. I feel great and the world looks different. Everyone is more attractive and I enjoy walking around the smoky casino (I do not smoke and do not enjoy playing any of the games).

1) I help a drunk girl find her friends.

2) I helped a handicapped woman move her wheel chair around another chair.

3) Finally, I hold the elevator for a couple going to their room.

I cannot fall asleep until I write down some guidelines for serving others:

1) Respect their intentions.

2) Respect their private property.

3) Do not medicate them.

4) Do not get caught up in their drama.

5) Give my attention to them.

6) Do not compromise my values, integrity, or purpose.

My original goal is to get rid of my throat discomfort. Even better than getting rid of the discomfort, my throat is now an excellent tool for me to recognize when I can serve and give my attention to others.

Monday, November 9, 2009 

Workshop Update

Dear Ed (and Tribe),

My account. +1%. It goes up and down around 1% all week. I'm okay with that, as I see my longer-term stocks consistently doing better.

Some of my holdings, I've been in and out of for months , so they are consistently positive, without looking particularly good week to week. I am getting a better sense of what to hold onto, and what let fall away. The webbles and wobbles do not bother me much.

One of my goals is to get my concealed weapons license. I spent Saturday shooting and training. I am not good at guns. Guns are LOUD. (If anyone in my area would like to go for an afternoon at a local shooting range, I would be grateful for your company and advice.)

I am making progress with closure and precision. Some of the important paperwork got signed last week. On precision, I need to do more.

I woke up early Wednesday morning and had this bumper-sticker about my company in my head. So here it is. I only have until Tuesday to sell the company.

In general, you can sell a startup more easily once it demonstrates viability. 

You might consider assembling some pro-forma P&L projections and arrive at some idea of current value from discounting the earnings stream.

In The Matter of Selling Bananas

(and companies)

the buyer generally wants

to weigh them

before buying.

Clip: http://needled.files.wordpress.com/2009/

07/london_bananas_mar_05.jpg

Monday, November 9, 2009

Considering Right Livelihood

Hi Ed,

I get very insightful suggestions in response to my last report, and implement some of them. Thank you.

I calculate stops and place them in the market. The trades go for me and I am still full of emotions and feel confused. I go flat in my trading account that I call “short term”. I try to relax and have some success. I notice feelings, I try not to judge them, I try not to act on them and have some success.

I play a trading simulation game. The game emphasizes position sizing and de-emphasizes predicting markets. I am curious what feelings come up as I play the game. I start out and the trades go against me. I notice I am in a hurry to enter in the info and get the result. I notice frustration (is the game broke, is the description wrong, is my strategy flawed) when I have a string of trades go against me. I notice I am excited and happy (feel warm and calm) when I get a large 10 –1 (or bigger) winner. I notice that I am in such a hurry to enter data I hit the enter key to soon and miss a 30 – 1 winner, at this I feel anger. I am getting a sense of how I act and what I feel with real trades and am able to notice and ask what is the positive intention?

I decide to do a real trade and place a stop. I get stopped out very fast and notice anger (I have a loss) and joy (I have a stop in and I have a small loss). I do another trade and pick a small target profit.

I leave the PC to make some food for my son who is home sick and this takes about 7 minutes. I return to my desk I find the trade history shows the trade passes my target and drops below it and is now at break-even. I notice anger or rage at this and just let it flow and get into it. I take some deep breaths and think about how great it is to be able to fix food for my son and how great it is that I can feel anger and rage, but does it make sense to feel this if I am following a sound plan and strategy for trading? Maybe if I am not following such a plan it does make sense to feel anger. But, if I have a method and a tested trusted system it seems there is not justification for anger or rage at just following the plan.

Thank you for sharing your process.

Short-term (high frequency) trading generally provides excitement that serves as behavioral medications to cover up deeper feelings about right livelihood.

You might consider taking your feelings about <day=trading> to Tribe.

When You Connect with Right-Livelihood

your desire for frenetic activity

dissipates.

Clip: http://www.healthassociates.com/

frantic_businessman.gif

Sunday, November 8, 2009 

Getting Into Balance

Dear Ed,

Sunday, November 8, 2009

Starting a Fund

Sunday, November 8, 2009

Completing Forms

Hello Ed,

I am one of two members of [City] tribe. Other member, is a very close friend of mine. We conduct meetings mostly every three weeks. During the sessions, we find it hard to follow the normal procedure as described in your book, or in your website. More importantly, I find it hard to go deep into the form, and the cheering of my friend sometimes annoy me, instead of helping.

While developing the forms, I come to a point between a premature form and a complete form. Hence, I never attain zero point. I have a problem with never achieving zero point.

During the last hot seat session, I develop a form, but can’t quite complete it. I can’t reach zero point. After the meeting, I started having problems mostly at work. Worst of all, some of my all diseases (all due to stress) also shows up.

Thank you for sharing your process.

In general, in a two-man Tribe, you can make implicit deals to avoid going through forms you both wish to avoid.

A larger Tribe, say four or six people can help keep you on track.

You might consider taking your feelings about <stress> and <completing things> to Tribe.

Willingness to Experience Stress

tends to reduce the stress.

Resistance to experience stress

tends to increase the stress.

Saturday, November 7, 2009

Thank you for your encouragement.

You might consider reviewing your trading for evidence of missing out on major moves and then having feelings of regret.

If so, you might consider taking your feelings about <missing out> to Tribe.

Regret About Missing Out

might turn out to be

just one more thing

you regret missing.

Clip: http://k41.pbase.com/v3/91/491591/

2/46164746.regret.jpg

Saturday, November 7, 2009

Daily MAR

Saturday, November 7, 2009

Setting Boundaries with Children

Hello All,

I am writing to say that I would like to move my commitment out a few months. Since my return from Reno I have recognized that my Parental trading system has a few glitches that I would like to tune up. I notice that I set a boundary and then later, depending on how I "feel" may soften up on it or eliminate it all together. Inconsistent parenting I call it. I struggle with sometimes feeling that I am being too hard and at other times too easy.

I have realized that I can set a system up with parenting somewhat like I will do with stocks. I will set limits, stop losses, entry and exit points. A few ways I have thought of doing this is:

1) Sticking to a certain limit on daily TV viewing. I generally try to stay at 1-hour although someday when we are home more I allow more. I try to keep the shows fun and light, not full of shooting and violence.

2) Then I wonder how much WII (video games) I should allow. At this point it is about once a week, I vacillate on this enormously, again deciding on how I feel. Guilty for not letting him play something he really enjoys and happy that he enjoys it so much.

3) I get so exhausted a great deal of time and feel that I may not be available enough emotionally and then sometimes get angry and frustrated because I don't know where to buy more energy. Some of the things above are a babysitter for me while I rest.

4) I struggle trying to have more communities for us and then get frustrated if my son doesn't enjoy the group I am trying to connect too...

5) I am adopted, it, along with my upbringing has been excruciatingly painful. My son is adopted. I worry that he will struggle as an adult as I have. I have struggled a great deal with self worth, relationships, self sabotage, must I say more. If cause and effect isn't true than this concern could turn to bliss:)

6)I fear that I have too high of expectations and then too low. I kept my son out of kindergarten this year. He is a summer birthday. I feel good about that and I think he enjoys being one of the older instead of one of the younger children.

7)I make this too hard. I tend to "awfulize" and be the victim. I want this to stop. Set up a trading system with my son... and follow it.

I commit to deliver that system in the next two weeks to include:
 

consistent bedtime
meal times
tv times
community events
playtime
time for us together.
 

Thank you for sharing your process.

Saturday, November 7, 2009

Tribe Suggests Resources

Ed,
 

In helping the Sender develop Forms, the Receivers encourage and provide a Healing Field of Acknowledgment.

Friday, November 6, 2009

Finding the Critical Incident

Hi Ed,

I notice that a big part of the Rocks Process is finding the critical incident -- intensifying and freezing feelings, and finding a memory of an incident that associates with these feelings. Sometimes a Hot Seat shows up with a critical incident all ready to go.

In general, you can keep encouraging forms until they lead you to the critical incident.

Forms Can lead the Way

Clip: http://www.advance-counseling-denver-

boulder.com/human-2.gif

Friday, November 6, 2009

Sprouting Intimacy

Hi Ed,

Before the Workshop I am stuck in a number of important areas in my life. I want more intimacy with my wife but cannot take the necessary steps to get it.

I run a hedge fund and want to continue building its infrastructure but cannot make any meaningful progress. I want to improve my health by eating better and exercising but cannot get myself to do either.

Instead of taking action, I find myself using every free moment researching a very dire subject -- the possibility of a future economic collapse. Almost every night I sequester myself in my office and research this topic. Though I find the subject matter depressing, I immerse myself in it and become filled with dread. Yet, I do not do anything to protect myself. And I am so consumed with my research that I do not spend any time improving my marriage, my fund, or my health. I am depressed and bewildered by my inability to take action. I feel very alone as I spend night after night secluded in my office.

At the Workshop I take the hot seat and experience these same feelings. As I experience my forms I remember an instance in my youth when I experienced a similar feeling.

I am six or seven years old and my mother is forcing me to eat Brussels sprouts for lunch. I hate the taste and refuse to eat them, prompting my mother to verbally berate me. Eventually I eat the Brussels sprouts and throw them up, producing even further drama in the household.

Through this process I recall my father receiving similar abuse from my mother at various times during my youth. When under this stress my father's response is to immediately leave the scene and disappear alone into another room in the house. I realize that my current behavior is very similar to my father's. I am responding to the stress in my life by secluding myself in my office and medicating my feelings with research into a very consuming topic. As the rocks process continues I gain new resources for responding when these feelings arise. When experiencing these feelings I now can respond in productive ways that encourage progress. I am no longer dependent on a single response -- seclusion -- that inherently limits my ability to grow.

The next morning I awake feeling free. I no longer feel stuck, depressed, and alone. When I call my wife that morning she tells me about something very strange that happens the night before. Well after dinner my five year old daughter suddenly asks to go the playground at her elementary school.

Since starting school in September my daughter is unsuccessful at swinging across a set of hanging rings without falling. Now she wants to go to the playground despite the darkness outside. My wife initially refuses her request. My daughter begs and pleads with my wife, who eventually relents. With only the light from the car's headlamps guiding her way, my daughter tries again and again to navigate the rings without falling. My wife estimates about a dozen attempts. Finally my daughter succeeds and then promptly asks to be taken home. My daughter's palms are rubbed raw from the effort, but she is happy about her accomplishment and beams with pride. I confirm with my wife that this episode occurs at 7:30 eastern, which corresponds to when I am taking the hot seat. At first I am dumbstruck upon hearing the story. I then feel overwhelmed with joy at the thought of my child's effort. It appears that my daughter is now unstuck as well.

When I return home from the Workshop I no longer spend hours every night alone in my office. Instead, I spend more time with my wife and feel much closer to her than I have in a very long time. I go to the gym several times. I begin eating better food and lose six pounds. I stop researching about the possibility of economic collapse and construct a plan for protecting my assets. I formulate a realistic time table for building out my fund given my current time demands. I am no longer stuck.

Thank you, Ed, for once again supporting my process and assisting my pursuit of Right Livelihood.

Thank you for sharing your process.

If you don't deal with these ...

 ... your daughter might not be able

to do this!

Clip: http://3.bp.blogspot.com/_DZH2cmCoois/

R68ZqYUMhFI/AAAAAAAAEjc/TP_GEejQrEs/

s400/tmp.jpg

http://s3.images.com/huge.75.379639.JPG

Thursday, November 5, 2009

Starting on the Path

Dear Mr. Seykota,

I have received the "The Trading Tribe" book. Thank you very much.

I will send in my information to start a local trading tribe in my area once I finished reading your book.

I have been following your FAQ for sometime and have some AHA moments. Your book will help me to further understand your TTP process.
 

I feel honor to be able to learn from you and to promote your TTP process.

Thursday, November 5, 2009

Obstacles

Dear Ed,

If making a commitment is supposed to get feelings & thoughts to ‘bubble up’ to the surface then I achieve this aim. . . . BIG TIME!!!
 

*****
 

Thank you for sharing your process.

You might consider taking your feelings about <serving others> to Tribe.

Bubonic Plague

Rats carry fleas

that carry the bacterium,

Yersinia Pestis.

Painful buboes appear on the body,

typically the neck.

Other tissues suffer necroses.

Death generally follows infection

in about 12-15 hours.

Clip: http://www.nlm.nih.gov/exhibition/

perez/drawings/plague.gif

Thursday, November 5, 2009

Workshop Follow-up

Getting In Line With the System

Dear Ed,

At the workshop I committed to:

1) taking the funds that I had previously told myself were available for trading and paying them into my trading account
 

2) calculating core equity using the full amount of capital available and scaling my positions into this core equity amount
 

3) creating a variation spreadsheet to track the differences between my system signals, system position size and my actual positions and sending this file every Sunday.

This commitment was part of my goal to give up my behavior of not putting myself into situations where I have a risk of failing or losing.

After the workshop I realized that to create the variation file I needed a clearly defined system to compare against. This concerned me because I had open trades that came from 3 different systems and I had not tested all 3 to the same level of diligence.

After a while I realized that the one system that I had tested most thoroughly and had the fewest doubts on was the long term breakout system. This system is tested across the major FX markets and stock indices. I decided to use this system as the one to commit to and measure variance against.

At this stage I questioned how comprehensive my testing had been. It had been completed in a combination of Excel and Beesoft which made it difficult to see results across a portfolio of trades and I was particularly concerned about correlation and how much to risk per position. However, I have owned Mechanica since September and so I decided to re-test the system fully in M. This created some technical problems because not all my data had been moved into M and I had to manage some format changes but by Saturday afternoon my data was in M.

I then ran the system tests again on individual markets, sectors and finally everything as one portfolio. I used different bet sizes, maximum risk limits and sector limits to see if I was right about the system's characteristics and what level of bet size to use. I re-read Ed's risk article and parts of Ralph Vince's Money Management book.

By Sunday night I was comfortable that I had been diligent with my testing but I became very uncomfortable with a number of issues. I was already in a number of positions that were profitable and in the same direction of the BO system but for smaller bet size, I worried that by re-scaling now I would be potentially turning profitable positions into net losses because the new trades would out-weigh the old ones in a reversal. Also, I would have to enter into a number of markets weeks, and in some cases months, after the original trade signals were given. I worried that I would be entering into these markets at the wrong time.

I imagined people at my broker talking to themselves about how I had been stupid and suckered into the rallies. Finally, I worried about what to do with my trades in markets that were profitable but were in markets not tested on the BO system and were based on other systems .

Eventually I realized that all my back testing in M was based on particular start dates and M assumes you enter into the markets that day regardless of when the original signals were given so I was not doing anything different from the back tests. So, I decided to:

1) convert my existing stock index positions (based on cross-over system) into the BO system with one exception,
 

2) enter into the indices where I had no current positions
 

3) add-on to my existing FX positions (already based on BO system but using smaller risk size)
 

4) open trades in the FX markets where I had no current positions
 

Thank you for sharing your process.

You might consider taking your feelings about <appearing stupid> to Tribe.

Some of The Best Trades

appear "stupid" to others

until they catch on.

Clip: http://cientifica.eu/blog/wp-content/

uploads/2007/03/dunce.png

Thursday, November 5, 2009

Workshop Feedback - Getting Completions

Ed,

Thursday, November 5, 2009

Workshop Feedback & Summary

Dear Ed,

Thursday, November 5, 2009

Ed-TV

Dear Ed,

How cool is that !

Thursday, November 5, 2009

Ed-isms from the Workshop

Dear Ed,

I thought you would like these.

"Buy the dip, sell the crash".

"Pull the trigger, especially when you don't feel like it".

"These markets are just getting started right now".

"What s your 'check out' strategy, that enables you to avoid doing something?".

"... getting to feel the thing you never want to feel and maybe find it's your friend".

"You've already got a system. The [point] of most of your trades is to make your feelings go away".

"... replacing medicinal tendencies with proactive tendencies".

"... drugs are [usually] medicinal and used to suppress feelings".

"You are a whys guy". (to someone asking "why")

"Pain is your resistance to what's going on".

"I don't trade the short side much. The risk / reward ratio is [usually] terrible".

"I make a distinction between the house's money and my money".

"1. Find out what you want to do.

Thursday, November 5, 2009

Giving Up Control
 

In TTP, part of the process of giving up <control> is to see the positive intention of <control>.

You might consider taking your feelings about <control> to Tribe.

A game Without a Controller

becomes rather pointless.

Clip: http://upload.wikimedia.org/wikipedia/

commons/9/95/Game_controller_

PlayStation_2.jpg

Thursday, November 5, 2009

Post Workshop:  Blissful Solutions

Dear Ed,

Thursday, November 5, 2009

Random Walk and Trend Following

Hey there Ed (or Ed's assistant?),

I am at a crossroads.

Hopefully you have time to read and consider a response, which might help me.

Some background on me: I,

- live in [City] and have been learning about trading for a long time.

- have read extensively and considered various schools of thought on financial markets.

- have read Michael Covel's books.

- have read Niederhoffer's books, as well as his opinions on his website.

- have read Schwager, Kaufmann and van Tharp.

- have NOT read 'the trading tribe' book, yet, though it seems a logical next step, considering what I describe here:

It seems that I was at one stage convinced that trend following works and was actively designing different systems to find out which was a good fit for me.

However, I am also enrolled again at University, studying finance and Economics, to immerse myself in the subject matter.

At University, my lecturers and professors are adamant that trend-following is a fallacy and statistically it doesn't work.

The incidence of successful trend-followers is best explained by the concept of survivorship bias and plain luck, according to them.

Their arguments seem convincing. They are intelligent people for whom I hold a great deal of respect.

My lecturers maintain that the market average is nigh on impossible to outperform long term, consistently, duplicable.

I have been advised to read 'A Random Walk on Wall Street' to verify these assertions.

Concepts such as the random walk theory and efficient market hypothesis seem quite logical and contradict what I once took for granted about being able to generate returns greater than the market average.

Compounding this are assertions that Technical analysis fails, according to various sources.

Here's my problem:

I do not know what to believe, anymore.

I am perfectly capable of designing a series of non-correlated trend following systems using amibroker, BUT I have no faith that any such system will not just be a statistical fluke, if they do work.
 

I am continually doubtful whether success at trading is merely down to luck.

I have lost faith in what is certain, what is achievable, and what is not luck, in terms of trading.
 

These things all combine to completely sap my motivation.
 

I cannot move forward while I have these very real and unresolved doubts.


Please could you share some insights?

Your letter is consistent with having k-nots about making decisions.  Such k-nots may entrain behavior that may override your system logic, particularly at decision points.

In some cases, the anxiety around indecision may serve to medicate (cover-up) deep feelings about right-livelihood and right-relationship.

You might consider taking your feelings about <making decisions> to Tribe.

Anxiety May Serve

to cover-up deeper issues.

Clip: https://www.dankennedy.com/blog/

wp-content/uploads/business-anxiety.jpg

Wednesday, November 4, 2009

Terrible Fear

Dear Ed,

I am doing so far paper trading (for about 1 year). I was trying to build my trading system for some time, but I was not happy with it. Now I have some kind of system, but I know it needs to be better, let's say more clearer for me, so far it seems to me the best way : swing trading.

Anyway I would like to know what I am actually
doing. I was reading books mostly from Larry Williams (not only), who is my favorite writer, I love him (his style of trading)...but recently I started reading books and books about trading from others...big impact was from books of Van Tharp...and recently I bought Market Wizards (J. Schwager). I read the chapter called Ed Seykota

:-) and I was petrified with your statements about some kind of inner feeling in the market.

Realizing that you can not grasp the market with indicators and studies, that you need to have something more. I was little depressed, coz I dedicated so much time studying and now (I believe you are right with your statement) it seems to be all waste of time.

I am very interested in NLP, in stuff about feeling the emotions, that I discovered some time ago, before I started with studying markets. The process you are describing (TTP process) is also similar with Carlos Castaneda's description of deleting the past in his book "The Active side of Infinity". I was very into Carlos Castaneda in the past.

I am writing you, coz I am feeling strong desire to write you. I am feeling right now insecure about my future as a futures trader.

It is terrible feeling mixed with fear that all the work I did could be useless, anyway if I am looking to past I can see some experiences that led me to trading and the psychology (I am very interested in) is also very interconnected with trading. I am looking for some signal - maybe I want to hear from you:-) : "Stay here, you will be good trader"

In TTP we hold that every feeling has a positive intention.

Wednesday, November 4, 2009

Sticky Trading Problem

Mr. Seykota,

I have a problem with my trading. I have a need to put Post-it Notes on women while I trade.

I have attached some of the marketing material from 3M so you can give me the one true way of deciding how to trade with the Post-it trend.

Clips: http://www.smashingapps.com/2008/

05/30/28-incredible-and-creative-

advertisements-i-have-ever-seen.html

http://www.mopo.ca/uploaded_images/

post-it-notes-770733.jpg

Wednesday, November 4, 2009

Guiding The Meditation

Hi Ed,

I have an interesting thought of a guided meditation CD based on The Essentials card. I have been meditating and I explore how to completely assimilate Ride Your Winners.

I envision this also pertaining to life in general in that the CD could also incorporate other TTP positive guidance.

Wednesday, November 4, 2009

Pattern Recognition

Dear Ed,

I am researching how to develop practical pattern recognition software and how to apply it to enhance a mechanical trend trading system.

I'm unclear how to do this and feel confused on how to move forward. I don't have a feel for what can really work and what's frivolous.

I wonder if you're open to discussing this by phone, and if so, when is a good time to call.

Here's a list of topics I discover in my research:

Preprocessing (filtering)
Classification
Scaling Issues / Normalization
Boundaries, Transition detection
Ambiguity
Sliding Window
Template approach - rule-based classifier
K Nearest Neighbor

I notice various system dynamics stages occurring in futures prices series':

Exponential Growth
Exponential Decay
Oscillations
Overshoot
S-Shaped Growth

I notice patterns seem to progress through stages, transitioning from one stages to the next.

It seems to me that if software can recognize the "now" stage, and common stage sequences that it may be useful to place bets according to probabilities of continuation, etc.

For example, one pattern sequence I notice is Exponential Growth, followed immediately by Exponential Decay.

Yes, I think this might be a fruitful line of research.

Ocuhi Illusion

What you see is what you see.

Clip: http://www.michaelbach.de/ot/

mot_eyeJitter/index.html

Wednesday, November 4, 2009

Seeing it with Their Eyes

Dear Ed,

I thought this essay was very valuable. I think it applies to many interpersonal relationships, not only parent-child.


-----

In practice ... unconditional acceptance by parents as well as teachers should be accompanied by “autonomy support”: explaining reasons for requests, maximizing opportunities for the child to participate in making decisions, being encouraging without manipulating, and actively imagining how things look from the child’s point of view.

The last of these features is important with respect to unconditional parenting itself. Most of us would protest that of course we love our children without any strings attached. But what counts is how things look from the perspective of the children — whether they feel just as loved when they mess up or fall short.

Wednesday, November 4, 2009

Tuesday, November 3, 2009

Dollar-gami


Hi Ed,

In case you wondered what could be done with a dollar these days, it makes interesting folding paper.

Clip: http://art.commongate.com/post/

OK.

Tuesday, November 3, 2009

Big Wave Update

Hi Ed,

I have a change …

Big Wave Modification

1. Love Unconditionally and remain willing to release obstacles / false beliefs / rocks that hinder Unconditional Love / Receiving
 

2. Develop an Attitude of Gratitude
 

3. Live Debt Free
 

Tuesday, November 03, 2009

Conning Pinocchio
 

Dear Ed,

I was sent this and thought you would be interested in it.

Hello,

[Name of Person], the developer of the trend following [Name of System] System, asked that I contact you on his behalf. [Firm] is an independent commodity / futures brokerage firm established in [year]. We have a passion for meeting the goals of each investor and have worked closely with [Name] for many years.

Ed Seykota is a hugely successful commodities trader who pioneered trend following trading systems. He also keeps a very low profile. You will not see him on CNBC, so any sort of public appearance where he can distil some of his wisdom is a rare gift. His 6 simple, beautiful, and truthful rules to become a good trend follower can be found in his "Whipsaw" song.

1. Ride your winners
2. Cut your losses
3. Manage your risk
4. Use stops
5. Follow your system
6. Trash the news

OK, most of you may have seen Ed Seykota's Whipsaw song before, but for those few who haven't, here it is. The main message of the song is to stick to the rules, which is a fundamental aspect of trend following systems. Trading should be fun, like this, no? No more bluegrass, I promise.

Some More Ed Seykota - Quotes

* Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

* To avoid whipsaw losses, stop trading.

* Risk no more than you can afford to lose and also risk enough so that a win is meaningful.

* Trend following is an exercise in observing and responding to the ever-present moment of now.

* Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking 'better' the more it goes against them.

* Until you master the basic literature and spend some time with successful traders, you might consider confining your trading to the supermarket.

* I don't predict a non-existing future.
 

Thank you for the head's up.

The purveyor of this letter has no authorization from me to use my name or to imply any connection between my teachings and his offerings.

I also note various inaccuracies in his letter, including claiming my item #6 is "Trash the News."  In fact, I do not number the essentials and the last one is "File the News."

You might consider implementing some risk control before you engage the services of someone who demonstrates inaccuracy and who implies endorsements that do not actually exist.

John Worthingthon "Honest John" Foulfellow

and Gideon

are the fox and cat scoundrels

who inveigle Pinocchio

to quit school and travel to

Pleasure Island.

At the last sighting,

they are resurrecting their act

as purveyors of the Pleasure Island Fund.

Clip: http://farm3.static.flickr.com/2599/

3758520003_0c5e863685.jpg

Tuesday, November 3, 2009

Wants to Present Stuff

I recall seeing some materials and concluding they are not ready for presentation.

Monday, November 2, 2009

Un-lock-ing Resources

Hi Ed,

At the workshop I did the rocks process.

My issue is a father who used intimidation, yelling and force to try to control me. He grew up on a farm and I think his parenting followed a similar idea one would use to break a horse or any other animal. He seemed intent on getting us under control at an early age.

As the rocks process started I talked about my issue and the picture I saw in my mind was when I was a kid and took a lock that did not belong to me. I was walking in an alley when I saw the lock hanging on an open door and I took it off the door and walked away turning the key watching the key unlock the lock.

I was fascinated watching this action wondering how this worked. I lived about 2 blocks from the alley and as I was nearing the front yard to my home my dad spotted me and came out to see what I had. He ask me where I got the lock. At that time I realized I was in trouble and being scared of what he was going to do I lied and told him I found it in the ditch.

He was glaring down at me and yelling that I was lying and I just froze unable to speak and just zoned out waiting for it to finally be over while he yelled and screamed at me.

Through the years many times I have tried to think of what I could have done differently at that age to defuse his anger or handle these situations differently his anger was a frequent occurrence and could never come up with a single idea I felt may have worked with him.

My Tribe members suggested as a resource that I ask him how he was feeling. When they suggested this I thought to myself that this would never work but when I tried the resource it did seem to stop him in the role play.

The Tribe members suggested more resources but the most effective one was to be open to different ideas that came up. When we role played the issue again I just told the truth, I picked the lock up off the door in the alley and started playing with it. We should take it back now, come go with me to return it. I was surprised by this and really think it would work very well.

Every incidence of him yelling at me when I was a child I felt weak and powerless to do anything to change the situation, but in this role-play I felt powerful, in control, I no longer felt at the effect of his anger but instead felt the power to effectively deal with both the situation and his anger.

Monday, November 2, 2009

Necessity

Ed,

Monday, November 2, 2009

Feedback on Starting a Fund

and Offer to Help

Dear Ed,

Regarding various contributors reports on starting a fund, I offer the following:

Thank you for your advice and offer.

Monday, November 2, 2009

Committing to Having a Child

You might consider coming into full alignment with your mate about your commitment - and to the life-long responsibilities that associate with that commitment.

Family: The Essential Tribe

Clip: http://www.torchleader.com/tl/

20090205family.jpg

Monday, November 2, 2009

No Response from [City] Tribe

Mr. Seykota,

Monday, November 2, 2009

Wants to Ask Questions

Monday, November 2, 2009

Feedback on The Whipsaw Song

Dear Ed,

Nice job integrating this light energy music with the proper habits of good trading. I have watched this and listened to it a few times this evening. Great music and what a window for reinforcing or changing associations to the proper trading habits.

Thank you for your support. 

Sunday, November 1, 2009

Intentions = Results

Sunday, November 1, 2009

Sunday, November 1, 2009

Most Profitable Years

Sunday, November 1, 2009

Starting a Fund

Dear Ed,

I commit to starting a long-term systematic trend following fund by January 2010.

From now until the end of 2009, there are many intertwining elements which I am currently working on:

1) Building month-to-month pro-forma financial statements for the company (from now until the end of 2012)
 

2) Clarifying agreements with investors so I can move forward with incorporation and share allocation (as well as finalizing a shareholder agreement)
 

3) Refining my system and continuing back-testing
 

4) Building a list of potential clients and marketing the fund
 

Sunday, November 1, 2009

Committing to Supporting His Family

Ed,

Thank you for being on my support team. My balance sheet at the end of this week is:

Assets:          $575,560.74
Liabilities:     $552,142.58
Net:              $23,416.17
500 oz. goal:    $520,000.00

The big takeaway from the workshop for me is that the relationship I'm trying to have with my father is not the relationship he is willing to have with me.

Sunday, November 1, 2009

Releasing Molestation Trauma - After 35 Years

Hi Ed,

Thank you for hosting the weekend. I learned a lot during the weekend. The first two rocks processes I participated in both people on the hotseat had issues that were very similar to mine. On the first one I did not participate in the role playing because of a concern that I would not be effective since the issue he was dealing with was so close to one of mine so I just observed.

On the second rocks process I was in I volunteered to play the aggressor only after no one else raised their hand. I had a real concern that I could not pull it off since I had a strong emotional attachment to his issue.

He had been molested as a child and so had I at about the same age. One big concern was that I would get emotional in the middle of someone else's process and throw their progress off or look bad. I raised my hand anyway to play the part of the aggressor, Ed ask me to go ahead and I was stuck not knowing how to proceed. Ed checked for willingness on my part and I replied I was willing just not sure how to start. After a suggestion I got started and seemed to play the role well. Although from time to time thoughts about my own issue came to mind I was surprised to find myself able to stay focused on the role I was entrusted to play.

The next morning my experience of my own childhood played its self out in my mind. I remembered going to my next door neighbors home to watch him play with his model airplane engines. I always liked to build model cars and airplanes but my family could not afford the more expensive models with the gas powered engines and he always had the best ones. I remember as a child wondering how he could afford so many of them even being a few years older than I. After the incident happened I left that garage vowing to myself I would never tell anyone about that. I walked out feeling like a black cloud had covered the earth and everything had changed.

And I never did tell anyone until 35 years later at a visit to a therapist. My ah ha was that what he did to me was probably what had been done to him before and the expensive toys were more than likely the payoff he got to keep quite about it. I can not know for sure this is true but inside it seems to fit well, feels right and is consistent with what I have read on the subject.

Anyway the next morning after going over this in my mind I got more peace with my issue, was able to forgive the person who violated me and that issue doesn't seem to be something that troubles me now.

Thank you for sharing your process.

Victims of Molestation

who deal with their trauma

can avoid becoming the molesters

of the next generation.

Clip: http://www.hat.net/album/asia/india/

10_temples_and_gods/01_highlights/

041231170750_breast_molestation.jpg

Sunday, November 1, 2009

Developing a System

Sunday, November 1, 2009

Selling it for $1,000,000,000.00

Dear Ed,

Thank you all for your kind willingness to be on my support team. It makes me feel that my goal will be completely successful.

Here is my Bumper sticker / Big Wave, I formulated at the Workshop last weekend.

I ensure that [Name] will be sold for One Billion Dollars by November 10th, 2009.

How will the Tribe know? I will report to you- and you will also read it in the Wall Street Journal.

I felt fine for a few minutes, after my announcement, then noticed that I had a pain in my neck and a a tightness around my head. That seemed appropriate to me, as I had just put my neck on the line.

I got home- thanks to a kindly lift from [Name] and [Name]- and my husband was playing La Mer -on the CD player . A Big Wave.

I am aware that this is something of a long-shot.
I had high expectations of the Workshop- and they were more than fulfilled. I had an excellent and productive Workshop. I gained a lot of confidence in my system. I also realized that I need to do a lots of further study. I am a lot clearer as where I need to focus. The immediate issues are Closure and Precision.

No FAQs- I am in the process of re-thinking how I am studying. My priority is learning to back-test with the CSI program. I'm thinking of buying the Trading Blox program too.
 

If you are in an inflationary economy and if you have a little patience, you may be able to sell lots of things for $1B.

Five Billion Mark Note

Issue: Berlin, September 10, 1923

Clip: http://upload.wikimedia.org/wikipedia/commons/

thumb/d/d6/5_milliarden_mark.jpg/

800px-5_milliarden_mark.jpg

Sunday, November 1, 2009

Wants to Make 80%

Hello Ed,

Thank you very much for being on my support team. Here's my commitment. Feedback / criticism / etc very welcome.

I feel resistance to hitting the send button, "this is isn't perfect, I don't want to put myself out there,..."

Also interesting how many hours it has taken me to put this together.

Commitment: I will earn an annual return of 80% by 12-31-10 . To accomplish this I commit to continuous development of my system, to following my system, and to experiencing my feelings/practicing TTP.

I commit to continuous development of my system, to following my system, to experiencing my feelings/practicing TTP and to earning an annual return of 80% by 12-31-10
 

(not sure which wording I prefer on the above)

Continuous development:

* Trade review (2 per day).
* Past chart review (2 per day).
* Keep Trading Diary.
* Keep Trade Tracking.
* Read IBD (DSA, IC, BP), DJIM,

You might consider running some simulations to find out what kinds of drawdowns go along with your profit objective.

If you are having second thoughts about the wording of your commitment, you might consider taking your feelings about <your commitment> to Tribe.

Commitment implies sincere and steadfast fixity of purpose.  People have various views about commitment.

Commitment

When You're Beyond Screwed

and way too stubborn to care.

Commitment

The chicken is in.

The pig is all-in.

Commitment

You hang in there,

especially when don't feel like it.

Clips: http://freshfocus.info/blog/wp-content/

uploads/2008/07/commitment.jpg

http://happysquish.files.wordpress.com/2009/

05/255-1513_24_36commitment-posters1.jpg

http://pix.motivatedphotos.com/2008/8/24/

633551995270777371-commitment.jpg

Sunday, November 1, 2009

Sunday, November 1, 2009

Workshop Feedback: Shame and Guilt