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June 21 - 30, 2009


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Note: The appearance of a chart on FAQ does not imply any kind of indication or recommendation to buy, sell, hold or stay out of any positions.



Contributors Say

(Previous from Ed in Red)

Ed Says

Tuesday, June 30, 2009


Big Wave Report

Dear Ed,

This is to report my progress and commitment to my big wave.

First thank you for volunteering to support my Big Wave.

I want to apologize about the delay in sending my progress toward my big wave.

I feel a little stuck in writing the report. I miss the tribes and the moment that we enjoy in Reno.

I was very sad about the tribe here. In the beginning there were 6 members and two dropped. I feel sad [that we might] not have four people to continue the tribe.


We schedule one meeting and the other members didn’t show up. The other week we schedule another meeting and no one sent the confirmation that they would show up. I feel very sad of not having enough people to continue the process. I feel the feelings of sadness and I receive an e-mail that one person had a personal problem and [another] that she would participate in the meeting. Awesome!


We decide to continue the Tribe and we have our meeting this Thursday.

Since the last report I have ten signals in my system and I followed every signal. One signal I put the other the next day, because I need to put the order in a longer contract. I’m sorry supporters. I start to feel some feelings about the direction of the market and think about cover the profitable positions that I had. I feel the feeling and they go away. I’m thinking about some improvement about my progress about my big wave. The variance report that Ed wrote in the book. Does anyone have any suggestions?

About my last report, I want to thank Ed about the answer. First if someone wants help first I need to hear them request. Awesome Ed. In one phrase you guide me. Thank you.

The relationship with my daughter and wife is improving. I’m accepting them the way they are. I respect them and I try not to correct my wife the way she raises our daughter. I miss them because my wife and daughter are traveling now.

I want to share with the supporters that I sent the request to CVM ... to have the authorization to open a fund here in Brazil. I’m waiting for this authorization to open my systematic fund here and raise money to manage.

Thank you for supporting me in my Big Wave.

My Big Wave is

- Stick to my system
- I have a wonderful relationship with my wife and daughter
- I accept the others the way they are.


- You (being one of the important people) I’m my support team.
- My tribe
- My family


- I commit to send a spreadsheet every two weeks contains the trades generate by my system and the execution.
- I have a dinner with my family every Wednesday and we go out one day on Saturday or Sunday.

Thank you for sharing your process.

Monday, June 29, 2009


Hyper-Inflation Video

Dear Ed,

If you've got the time to listen to this video on hyperinflation will get an understandable feel for where we are going. It's not pleasant to be compared to 2009 Zimbabwe and 1922 Germany.

I checked out one item: the cost of living index from 1913 to now. My figures taken from the US Bureau of Labor Statistics website show that something your great grandfather bought in January, 1913 for 9.8 cents will cost you $2.13 today. I think that works out to 2171% inflation. I know that a pack of Wrigley's chewing gum cost a couple of cents in 1913 and it's around a dollar today, so that checks out.

But that's not the whole story. If you peruse the chart dates, you'll see that inflation in January, 1971 based on 1913 was relatively small—only 22.4 times. Then Nixon took us off the gold standard in 1971.

The new fiat money is just starting to trickle into circulation. As Al Jolson said (in 1928's "The Jazz Singer"), "You Ain't Seen Nuthin Yet!".

But why take my figures as gospel?

Anyone have any ideas on the best way to weather this? (besides the obvious—buying silver and gold) Are commodity stocks a good play?



Thank you for the clip.


You might bear in mind that even if we are heading into hyper-inflation, the path may lead through substantial corrections and draw-downs.


Risk control, including proper position sizing, is essential.




Drinking out of a Fire Hydrant


Sometimes too much of a good thing


can knock you off balance.


Clip: http://www.loftsinthelou.com/uploaded_images/



Monday, June 29, 2009


Heat and Margin

Thanks Ed,

I might not have been clear in what I was really trying to ask you. We really don't have fear in that sense and are very comfortable with draw-downs. I like to say we don't really have a trading style that we are comfortable with. In our firm we just create various algos designed to take advantage of various market conditions for institutions who are typically very well diversified not only in non-correlated markets but also strategy - trend following, mean reversion, arb, etc. In short, we create betting models and let the clients pick whether they want to maximize returns or minimize volume. If they want to push we push. We won't make that decision for them. I think that is really an edge for us. We won't pander returns to the industry and try to gain investors by showing how we have higher returns with less volume than competitors.


As you know, it is really just a knob to turn and at the end of the day anyone who believes in the power of well diversified non-predictive trend following has to believe that we are all doing the same thing just a little different mostly in terms of money and trade management. But we are all profiting from the same trends in essence.

I guess what I was really trying to ask is what kind of heat numbers do you find to be reasonable for typical well diversified 30 or so liquid futures instruments. I think most who have tested these types of systems would agree that when a system is profitable, heats of anywhere from 15-30% show quite well. But then there is margin to equity and its relationship to cash which needs to be available to take heat.


In that respect there will tend to be a range as well from as little as 5% to as much as 50% or more depending on heat and how many trades on at once there tend to be. In our newest (old) model we just back tested which was traded live for a decade but never fully tested, we are trading 30 instruments and have seen an average of 15 simultaneous with a high of 20 simultaneous instruments trading at once throughout the test period.

So I wanted to ask what your thoughts are on heat and margin for these types of systems assuming you have high model confidence due to exhaustive robustness measures. In your long term trend trading algos for example, what kinds of heat and margin numbers are you faced with and what are your thoughts on "over pushing" so as to create potential margin calls or running low on cash so as to have to adjust trade sizes, etc. (again, assuming trade size is constantly adjusted up and down as equity rises and falls of course)?


Always nice to know the company you keep in these respects. It has always been a matter of curiosity to me. That is to say, how much is too much and how much is too little when considering these tradeoffs. It just isn't as simple as a comfort level in my view...

"FAQ does not ... offer specific trading advice, or recommend specific trading system parameters." - FAQ Ground Rules


You can likely answer your questions for yourself by back-testing.


If you would like private consulting, check the terms at the bottom of the FAQ Ground Rules link, above.


Monday, June 29, 2009

MAR of 49 / Gain of 2500%


Please see the excel sheet ledger from my account with IG-index plc. They clearly show a 2596% gain over the most recent 2 year period.

Important note:
During the early part of this report, most of my funds were with other brokers, and I can provide data from these accounts if you feel you need to see more.

Also there is a zipped file with statements which I have lined up to correspond to the dates that withdrawals and payments were made.

The excel sheet has six pages

1. Withdrawals (2 years of data, showing withdrawals, payments, account balances from the attached statements)
2. Chart of actual profit ( account balance + running total of withdrawals) less monies added)
3. Sterling (Raw data, showing every trades profit and loss from the unedited ledger since 2002)
4. Euro
5. Dollar ( euro and dollar have been ignored due to virtually no trades in them)
6. Ratios

Later this week I can provide copies of bank receipts to prove when these payments were sent from the account above.

The approximate MAR computes to 49.42
Rebasing this account to provide exact MAR and other ratios and draw-downs on a day to day basis is a task that would take me months to compute.

I hope you will be satisfied with what you have seen here.

Included in this report are the profits from my beta testing a system which I renamed the "October system" which was printing 2-3% a day during the vicious market period of October 2008. It has since become less effective while the market is quiet, hence I am not using it but just monitoring conditions until they are suitable again. (Best day was around 425 points profit from FT-SE100 futures)

I am flexible if you decide that you want this model to be engaged again during high volatility market conditions.

Please also remember, I am offering you a guaranteed investment during the trial period if you choose to take this option.

In reality, you can expect returns of between 20% and 500% on a larger account depending on market conditions.

But also I caution you that many of the stocks I trade are small-caps and cannot absorb large deal sizes, so if the funds you intend to place are greater than approx £500,000, the respective percentage returns will generally be lower than if you place funds of £150,000.

There are more accounts I have to go through including a 7 month period where I was running a fund pilot scheme for a client.

It returned 25.4% over this period and I have kept meticulous records from this period, so will be able to give very accurate ratios for that.

Please advise what else you require in the way of information.

Upon checking over the materials I notice, on your performance graph a drawdown in early 2008 from about  £4000 to about  £1500  - or about 60%.


I notice a subsequent deposit of about  £2000 that increases the account to about  £3500 - and that this seems to count as a 133% performance increase.


The "brokerage statements" that support the graph have no brokerage house logo - or way to verify their authenticity, they look like some sort of abstracts.


The statement that details the early 2008 transactions is conspicuously absent from your materials.


Industry standard MAR is typically in the range of 0.5 to 1.5, nowhere near 50.0.


All in all, your presentation is not within any professional reporting standards with which I am familiar.


You might consider hiring an accountant with experience in this area to assist you to achieve conformity.


You might also consider taking your feelings of <anger>, <authority> and <having to conform> to Tribe.




Where You Find Non-Conformity


you typically find anger.



Clip: http://www.vecernji.hr/system/galleries/


Monday, June 29, 2009



Dear Ed,

I feel that the positive intention of "Suspicion" might be to guide us toward a probable lead.

What is the positive intention of "Suspicion?"

You might consider taking your feelings about <suspicion> to tribe.




One Positive Intention of Suspicion


is to increase focus.



Clip: http://www.independent.co.uk/multimedia/


Monday, June 29, 2009


Dear Ed,


[I am reading an article on deflation.]


This article postulates that the money supply is shrinking despite the stimulus and printing efforts.

Essentially, the money supply is made up of the monetary base (physical money and bank reserves), bank loans, securitized debt, and derivatives.

The Federal Reserve exerts direct control over the monetary base and indirect control on bank lending.

The Federal Reserve has no control over securitized debt or derivatives.

Purportedly, securitized debt and derivatives dwarf the monetary base and bank loans by a factor of 13 to 1.

So even if you are pumping in excessively on the 1 side, contraction of the 13 overwhelms the Fed’s efforts.

Is it time to develop more intelligent short systems?


You might consider looking over the Milk Glass Game on my web site (EcoNowMics, above).

In this framework, we have a system of levels and rates. This system does a pretty good job of explaining dynamic behavior whereas the causal model does not provide much insight.

I wonder if you can enumerate each of the variables in your article, such as monetary base, loans, bank reserves, derivatives, etc. and define them with a diagram that shows which are the key levels and what policies control the flow rates into and out of them.

At that point, we might proceed to simulate the model and see if the assumption set produces behavior that is similar to that which we observe historically.

At that point I might be better able to determine if the assumptions lead to an inflationary or deflationary cycle, or maybe both at the same time.

For example we might have real wages and real-estate going one way and the prices of raw materials and energy going another way.

This is possible in the case where the economic system acts to bring real wages in line with real productivity.

By the way, the original meaning of inflation
has to do with the printing of currency and only secondarily with the price level.

One policy which the current administration seems to be following is to respond to high unemployment and/or low credit levels by increasing the spending rate.

I am currently working toward developing such models, and toward developing tools with which to develop such models.

I welcome your participation in this work.

I do not know the meaning of a "more intelligent" short system, other than to guess it is one that processes fundamental information
and uses that processing to modify trend-following parameters.

I feel that the feedback dynamics modeling approach might be useful in this regard - although the process of building useful models
might require considerable patience and diligence.

Until I see some clarification of the meanings of the monetary aggregates in the context of a complete model of the economy, I do not have a basis for guessing how they are evolving.

Incidentally, the debt-contraction model might also like to include the role of capital reserve flows in determining currency exchange rates.

You might consider if your thoughts about "switching to the short side" are responses to real and deep insights and understanding about the economy or if they are responses to the short-term wiggles in your equity line.

Monday, June 29, 2009


Grandson on Myth Busters

Hello IVTT Members,

On June 4 at an IVTT meeting Ed updates us on the physics community’s increasingly positive reception to his Radial Momentum work. He mention’s the MythBusters TV series as a possible way to focus attention on the Bernoulli Myth – that the decrease in the pressure of the stream of air moving over the airfoil explains lift – and to explore the Radial Momentum alternative. A FAQ reader also comments on this possibility on June 8.

My grandson recently visits the MythBusters on location with a relative who is with Cal Fire (MythBusters Adam and Jamie are going to play with fire, as you might guess). For a kid this experience is close to heaven! Now that I think of it, I bet a lot of us adults feel that way too!


The MythBusters audience seems to like explosions, bullets, fire, danger and of course, skepticism and busted myths. Ideas for episodes often come from viewers. Those most likely to get tested are sometimes presented in the form of a video showing a mock MythBusters episode in which the viewers test the myth at some level that entices Adam and Jamie to amp it up on the air with their resources.

For example, two Dutch guys send the MythBusters a video showing a garage-level test of the myth that it is impossible to separate two phone books whose pages have been interleaved. Adam and Jamie use ropes, teams, and cars trying to separate the phone books with no luck. Finally they get a battle tank and an armored personnel carrier involved and record on a gauge that it takes 8,000 pounds of tension to finally tear the phone books apart. “Goo’ stuff” as my Brazilian friend says.

Maybe we can present the Bernoulli Myth / Radial Momentum in a form that challenges MythBusters in similar fashion.

The Myth Busters guys seem to like things that go boom.  I am mulling the idea of a way to make radial Momentum go boom too.






explodes the myth


that you can soft-boil eggs


on an atomic grill.




Clip: http://www.radgraphics.net/images/



Monday, June 29, 2009


The Why Game

Dear Ed,

I have a son who is about 3.5 years old. He asks “why” questions many times throughout the day. I try to explain to him that I have a tough time answering why questions, that why questions fit with the causal model and I view the world as more complex than simple cause and effect.

I notice that my wife at times answers his why questions and quickly finds herself in a seemingly endless why question loop.

I am hesitant to play the why question game where I repeat why questions to him and see who gives up first.

What might be some age appropriate ways of discussing this issue with my son?

You might consider answering each why question with the question "Why Not?"


If you are consistent and stick exactly to this plan, your son is likely to see the futility of the game.




People Who Ask Why Questions


are Whys Guys




Clip: http://www.lesko.com/images/rev2/


Monday, June 29, 2009


Wife Starts to Change

Dear Ed,

I report on my Big Wave (“I give my wife and my children all my love and support”).

It is the first week after my visit to IV and [City].


The first days she [was] slamming doors, [making] remarks about the futility of my effort to change, [and I am] wondering about what she feels for me.

On Saturday, I discuss with my wife what I expect from a relationship: to be open, to share emotions, to talk about our needs and our feelings, to help the other person grow.


My wife mentions that she remembers her first relationship to be that way. I always wished to have that kind of relationship with my wife, and I remember it being this way at the beginning.


However, in my marriage I [have] experienced mostly frustration, loneliness and the need to fix the other person. I covered my sadness with immense anger, retiring and shutting down. I did not take care of her feelings anymore. The reasons why she felt in love with me were not present. But at the same time, as I worked on frustration, anger and “I fix people” on the hotseat, my wife [was becoming less attracted to me].

Now, I just do not need a relationship where my partner shuts down or leaves the room when I try to discuss problems. Furthermore, I learn to present the “problems” in a way that my partner can accept, and I also learn to receive her feelings about the same issue. The start is difficult and clumsy, like learning a new language. I know that it can improve with practice, if this is what I want.

I say to her “I wonder about what you said, that you do not find me physically attractive, that you cannot define what you feel for me”. She mentions that “attractive” for her means understanding and acceptance, taking care of the other person, what I showed right from the start. In this sense, she finds me attractive. And regarding love: after the last months, were I literally started packing my luggage to leave her, she needs some time to sort out her feelings. I understand it and accept it.

I observe huge changes in our interaction. I also observe quantifiable changes in very intimates areas; maybe you prefer to believe me, although I don't want to report the details.


I remember Ed talking about three weeks to develop a new communication style with my wife. I observe the development in the ever changing moment of now.

I thank you for your support.

Thank you for sharing your process.




Changing Yourself


is usually the best

and only way


to change someone else.








Clip: http://www.idealgiftguide.com/




Sunday, June 28, 2009


IVTT End-Of-Term Report

Goals, Process and Intimacy


Dear Ed,

Having just completed the recent IVTT series, I must report that it was the most powerful Trading Tribe experience I have ever been a part of in the past 3 years.

For me, combining “Goal Orientation” & “Process Orientation” together, created the most tangible and rapid professional success I have ever enjoyed.

I completed more professionally during this spring than ever before. Thank you to Ed for creating the process, and thank you fellow Tribe members for all your care and support!

In addition to the extensive professional growth I have seen, my relationships with loved ones around me are changing. This “remote” and “unintended” transformation of family members has been remarkable.

Loved ones and I are sharing more intimacy and honesty than ever before.

I wish all my fellow Tribe members happiness and success.

Thank you for sharing your process.

Sunday, June 28, 2009

Quotable Quotes


Dear Ed,


Thought you would enjoy this:



Some quotes in the attached file are extremely thought provoking.

Thank you for the words from and to the wise.

Saturday, June 27, 2009


Less Cussing and Fussing


Dear Ed,

Thank you for reading my report. I am still recovering from the Rock Process.


I am enjoying my adjustment. I stop cursing, drinking, throwing garbage and [start] receiving woman little by little. My assistant is very tough to receive, but it's happening little by little everyday. I enjoy a challenge.


I am happy [now] in the morning. I do have one more tough issue I am trying to reprogram. I am confident I will prevail. I want to achieve zero variance in my brain.

Thank you and let's keep in touch!

Thank you for sharing your process.

Saturday, June 27, 2009


Wants a Return Link


Dear Ed,

It might be useful to add the < Date > and << Previous ... Next >> control at the bottom of FAQ posts so that readers need not scroll to the top to jump to the next page.

FAQ pages run from earliest (at the bottom) to most recent (at the top).


You can try reading them from bottom to top.


Otherwise, you may now find a "back to the future" link at the bottom of this page.

Saturday, June 27, 2009


Error in FAQ

see previous


Dear Ed,

In the FAQ posted for Friday, June 12, 2009: “Strategy and System” there appears to be an incomplete sentence:

“System as the overall mechanism that contains your strategy and the rest of the feedback system that surrounds it. “

Thank you for the catch.


The entry now stands with corrections.

Saturday, June 27, 2009


Positive and Negative

Dear All,

Thanks for being part of my support team.

I [would] like to thank Ed for his reply:

"I wonder how you know that you are 85% of the way toward something that you do not know about".

See: Completion Percentage


I realize that I have just added additional measure(s), not part of my original Big Wave, which have an impact on my progress and the way I think / act.

In other words I see how I have been trying to pre-figure out goal (s) and how completion percentage is a negative feedback loop.

I commit to experience exponential growth in my Big Wave.

I intend to manage the process with control-free measures that facilitate whatever comes out.

I see negative feedback loops as a cool choice in certain type of systems.

After realizing that somehow I have been restricting my creativity, one idea pops into my mind about trailing stops. I test it and boom! I make an interesting discovery and a sensible progress on finalizing my trading system.

Cool, Cool, Cool.

Recently I recall the below steps:

*) I get clarity on logical stops

*) I have a meeting with an old-friend, part of my Support Network.

*) I receive a proposal to manage a Fund (internally).

*) I have STELLA, I build some models

*) I finished Road Map 7 (System Dynamics)

*) I am receiving my girlfriend and supporting her.

Thank you for sharing your process.

Friday, June 26, 2009


Less Alcohol - More Aliveness

Hi Ed,

I just read [a Tribe members] post to FAQ dated June 14 “Engine Runs on Less Alcohol.”

It is very well written, expressive, personal and deep. I am happy to be one of the receivers at the Tribe meeting mentioned in the post and to be one of the continuing strong supporters.

The comments help me to reflect on a similar change in my life since joining the Tribe. I have stopped using alcohol entirely, without any need for strong willpower or programs, since learning and engaging in TTP. The desire to shut down feelings with red wine, my poison of choice, simply went away. I had an epiphany of sorts one evening a few weeks ago.


Walking in the forest, I came upon a clearing with a view of a beautiful sunset. Something clicked inside my head. My Fred said quietly to CM “this is how I want to live the rest of my life” (meaning sober and fully in touch with every sensation, sight, sound and smell). I changed instantly.

It is so satisfying to wake up in the morning completely sober, in touch with my feelings and my environment and my wife and my dog and my neighbors and my friends.


I can hardly remember the stress that I put on myself, the drive and urgency to achieve and the dramas that I played out over my own insecurities that led me to work like a madman in the days and drown my feelings after work in wine. The story helps me to put this all in perspective.

Thank you for sharing your process. And thank you Ed and IV Tribe for your support.

Thank you for sharing your process.

Friday, June 26, 2009


Wondering About the Essentials


I read your "Essentials" card. I wonder if you would elaborate on "Manage Your Risk."

I also wonder if "File the News" is equal to "Ignore the News".

The card carries the essentials - universal principles - the details are up to you.

Friday, June 26, 2009


Back Test


see previous - Skid


Thanks Ed,

Yes, our models are not intraday. And what you say has also been our experience. If you find an intraday automated trend following model that works well at least from 95 through the "M" (S&P curve from tech-boom/bust/credit-boom/bust), let us know - we will buy it. LOL.

Thanks for the insight on the skid-marks. Ouch. Interestingly we have been using 10-20% of ATR as a guide in the dark depending on liquidity of the instrument and it seems right from our experience. Then again I think it is too much for long term trading which isn't automated. I feel confident that I could work most orders with no slippage fairly easily in any market that trades 20K a day or more at day session times of course.


What are your thoughts on slippage specifically for longer term classic non-predictive trend models? Again, we designed the model in question to trade optimally at 100M equity with trade entries and exits spread across 12 models to stagger which creates typical lot sizes of 50 per instrument or so at that equity. We are trading no markets less liquid than 20K contracts per day.

On another note, I wonder if you would share some thoughts on margin to equity for long term trend models. We tend to like to tailor risk models for every client who will invariably differ wildly in terms of higher returns vs. lower volatility needs.


In general we always like to push as hard as possible in the interest of absolute returns for those so inclined. Then again, overreliance on past performance is always a trap as well. That said, I can't help but wish I would have pushed harder when I see the model take it in stride year after year.


So...how much is too much? Our best LT model could have relatively easily traded at 50% margin for the last 20 years but it scares us to death. Then we look at our competitors and they are all trading mostly 15-25% margin in the longer term trend arena.


Our standard deviation numbers are great as is the robustness of the 12 non-correlated models weaving in and out of the 31 liquid markets we trade in it, and yet we still have fear (where's Murphy?) of having to adjust trade size too much due to depleted cash just when that happened to be the trend of the decade.



You can answer your own questions by back-testing - and by evaluating the results emotionally - to determine if you can stick to your system once you implement it.




Eating Oysters, Like Following a System


may work better in theory


than in practice.





Clip: http://www.gotravel24.com/files/



Friday, June 26, 2009


EcoNowMics Evolves


Dear Ed,

I notice that your EcoNowMics pages are evolving. I find the new organization easier to follow, but I find it difficult to keep track of what is new information you add and what is information I re-read in a different place on the same page.

To keep up to date with EcoNowMics, and to keep up to date with all your relationships, you might consider implementing a policy of frequent check-in.



Frequent Check-Ins


support intimacy.




Clip: http://www.lockandloadsafe.com/images/


Friday, June 26, 2009


Complaining as a Drama Clue


Dear Ed,

If I notice I am complaining about something frequently, that is a big clue I may be involved in a drama that I am pretending I don't like.

Have a lovely day.

Thank you for sharing this insight.

Thursday, June 25, 2009


Sad About Relating to the Mother Land


Dear Ed,

Twenty years ago today I emigrate from the Soviet Union. I notice many feelings that come up as I reflect on the memories of my choices.

I feel grateful for the opportunities that I have in the free world. Even simple things. I walk in a supermarket and see an abundance of food. I have my choice of food in different styles, different budgets, different quality. I remember empty store shelves and lines and ration cards in 1980s' Moscow. I feel gratitude for having the benefit of an economy that can support this abundance.

I notice that few people in my birth country like to experience their feelings, and fewer still like to receive other people's. I notice how happy I am to live in a society can support personal growth if I chose to pursue it.

I notice sadness. I am sad that my relationship with the motherland doesn't work out. I am sad that I feel uncomfortable in a country where my ancestors live as far back as I can trace my family history. I am sad for the associations I sever when I go through the Iron Curtain.

I notice this sadness for the first time in 20 years. I see that I am willing to feel anger about my experience but not sadness. I also notice that resisting sadness and not letting go of what I leave behind 20 years ago drives big dramas in my life. In Hotel California, you can check out but you can never leave. In Soviet Russia, I can leave but I can never check out--until I am wiling to experience the sadness.

Today is a sad day for me.


Thank you Ed for helping me feel the sadness and for teaching me to let go.

Thank you for sharing  your feelings.

Thursday, June 25, 2009


Future as Medication


Dear Ed,


Hi and thanks for the discussions.



Your thoughts are... ?

The speaker cites the policy that controls the relative consumption and savings rates - as a major determinant of success.


The application of this policy occurs in the now and only in the now.


Framing the policy in terms of "future" planning is unnecessary and confusing.

Thursday, June 25, 2009


Cleaning Up Language


See Previous

Dear Ed:

Thank you for sharing. I notice I stopped using cursing words and paying attention all the time when I speak and write. I mentioned to other IV members months back I wanted to stop using curse words and learn to speak more appropriately.

Thank you for sharing your process.

Thursday, June 25, 2009


Having a (Basket) Ball


Dear Big Wave Support Team,

My Big Wave is to be a Bodhisattva - someone who has great wisdom and great compassion, and dedicates to service. The service I'd really
like to provide is to help people find happiness, especially through engaging in "flow" activities  by following their genuine passion - what really means to them on a deep, emotional level.

Looking at the log, for the last month, the two activities that stand out the most is


1) basketball practice / games, and


2) TTP meetings / email with group and support team.


The latter is of no surprise as leader of the [City] Trading Tribe, but the former is a shocker to even myself.

I gain a lot of clarity along the way in the last month. I [completed] a 3-page Word document that discusses the clarity I gain with respect to my passion in basketball since it manifests itself as the activity I engaging in most (I highlight the important points), and an Excel spreadsheet that includes the log that I have been keeping (also available in the [City] Trading Tribe Google group).

Thanks for your support.

Thank you for sharing your process.

Thursday, June 25, 2009



Hi Ed,

Hope all is well with you. We are a successful futures trading group with approximately $35M trading in long term trend following strategies.


We have recently automated some older algos as well as built some new ones and are taking on new capital up to $100M soon. We have traditionally traded (and tested) using pit instruments and are trading in Globex more and more, although still executing during peak day hours.


I'm looking for a real easy generalized way to build slippage into our thinking so as to decide on what best to report to clients for new models we roll out given they are notional accounts. Of course in a perfect world we would all like to understate our models then outperform with the kiss of death being the opposite. Strange, but even with many years of real world experience we still find ourselves wishing we could just stick a percentage number on as a subtraction and be done with it.

All this said, in your experience, when you finish (or see) a long term non-predictive trend following model that trades the 30 most liquid futures contracts (nothing under 40K a day in ADV - all CME and CBOT stuff), how much do you figure the notional backtested values are overestimated. Keep in mind we are trading 12 individual models that spread entries and exits out of course to where at a $100M account size typical average trade sizes are running 50 cars or so. Of course we know that there is a range of no slip in say the ES to what is sometimes significant slippage with that size in say, Lean Hogs or something. But again, I would love it if we could just look at a model and sort of always know it is overstated by 10% or 25% or even 50%. Again, we can visualize it and feel it in real trading but since we are newer to automation we are trying to avoid having to write another algo for slippage. Especially since it will never be accurate anyway as you well know. Our theory is by using general estimating here we can avoid yet another overfitting trap in the same way returns are a function of the data and as such less reliable in terms of future prediction whereas in our experience model volatility and consistency tend to be amazingly accurate.

Any insight you can give us would be greatly appreciated. Again, I would love to have your gut instinct above all else (although any detail would be nice too). In other words if I sent you my return results and told you I was going to trade a hundred million account in just the 30 most liquid US instruments with entries and exits spread across 12 models, but also said I had not adjusted for slippage at all, how much would you guess I was overestimating returns?

In general, you might set your expectation for skid  (transaction cost from fills that execute beyond the stop level) to a benchmark of about 25% of the way from the stop price to the extreme price of the day.


You might then track your actual fills over all your trades, compare against your benchmark and make some adjustments.


For low-frequency trading systems, skid is not much of an issue.  For high-frequency, high velocity systems (day trading in particular) skid may present a formidable problem.


I have as yet to see a profitable long-term track record of an automatic day trading system.





Your Skid Problem Generally Increases


with velocity.




Clip: http://www.fwditon.com/attachments/2006/



Thursday, June 25, 2009


Milk Model Evolves


The evolution of the Milk Model is even better than last week.


Now I totally feel and understand the concept of "feedback loop".

Thank you for your support in reporting your reactions - and in helping steer the project toward clarity.

Thursday, June 25, 2009


Updating TTID

Hi Ed,

I hope all is well with you. It is a long time since I write.

Ed, I want so say thank you. Since I am trading small accounts and learn about trading as well as myself, you are a guide, the light on my path. Reading about other traders experiences and your responses to them, listening to your songs or thinking what you might do facing different challenges, is a great help on my path to be a professional trader. The dream has changed in so many ways yet still remains the same.

Thank you so much for being there for all of us.

Today I update [our] Trading Tribe information in the Tribe Directory. [We have] two members and is open to new applicants. I provide more information in the Tribe Directory.

We have great results and can't thank you and the whole TT community enough for all the hard work, support and guidance.

I see the path as a chart with many bull moves, retracements and occasional declines. I find myself more willing to go with the flow everyday. Life seems so natural now.

Ed, once again, thank you.

Best regards and good trading.



Practicing Bet Size management


and risk control.


You are welcome.  Thank you for your support.

Thursday, June 25, 2009




What is a "pro active" response in dynamic system and / or in TTP?

In French websites, "pro-activity" is a general concept of "anticipation."

In FAQ, it seems to be in opposition of "healing" or "therapy".

Thank you for everything Great Teacher.

In the TTP Rocks Process, pro-active responses are ones that include staying awake, sharing feelings, being open to receiving others, saying what you want, etc. 


Medicinal responses are ones that include going unconscious and/or entraining methods to shut off emotions.


During the TTP Rocks Process, we come to supplement medicinal rocks with pro-active rocks.

Thursday, June 25, 2009


Sincerity and Openness


The last few days I was wondering about my reports to FAQ. I am talking about so [many] private issues (issues of my wife) and was uncertain about the adequacy of it, trying to keep a balance between sincerity / openness and exhibitionism. Then, I read the posting from Tuesday, June 23, 2009, Dealing With Father. Thank you for answering my questions before I ask them.


Thursday, June 25, 2009


TTP Goes to School

Dear Ed,

As I mentioned, I started using the technique with patients at our Hospital. The first patient was a cancer survivor. Don't ask me how to tell colleagues that on her I treated a case of severe purple back tightness! Today I attend the second patient. She consults due to fatigue after cancer treatment. I remember our discussion about helping or fixing people. Doctors usually prescribe medicines or therapies to reduce symptoms. This time I decide that her fatigue is not a problem but [an opportunity]! As I allow her to talk about her feelings, I find out that fatigue is protecting her from doing too many chores; after her disease she wants to have time for herself, but her children and grandchildren want her to help them. Fatigue helps her to avoid doing things instead of saying plainly “no”. Fatigue is, indeed, helping her. There is no pill to reduce fatigue suddenly, but I realize that, if there would be one, it would a mistake to give one to her.

She talks further about her feelings. She feels a strong pressure in her chest, it is anxiety and it impedes her enjoyment of a lot of things. I test willingness several times. She wants to get rid of the pressure. Hence, I offer to accompany her in her feelings. She has tears in her eyes; I mention that crying is great and that she can cry if she wants. I close the door and help her to feel the feeling. While she cries, she shows the form “hand on her throat, other hand on her belly”. After our first talk in IV I learn to use a certain “sorcery” and experience myself what [the person on the] "hotseat" is feeling right now. I feel a fist held tight in my chest and mention to her to make the fist tighter. She increases the pressure for some time; then, I feel myself the release of pressure. While she is motionless, I feel overwhelmed by emotion and start crying. Some 5 seconds later SHE starts crying. It is not the first time that I feel the outpour of emotion in my own body before [the person on the] "hotseat" does.

Then, I start saying cool things. I wonder where I get these ideas from? I mention “the pressure is OK, it is a part of you like the lung or the hip, and it is so easy and so nice to accept it, just let it flow. Who says that you should not allow the feeling of pressure, that it is bad? Maybe it was mom, or dad, but they are not there anymore. Nobody can judge if it is right or wrong, it is just your way to do things!” As I tell her that, I am deeply moved. I am glad that her eyes are closed, because I start crying again.

This shows me the intensity of the interchange between [the person on the] "hotseat" and me. I find that not trying to fix her and accepting her and her feelings is closer to TTP than my own “home-brew control-centric hybrid”. However, I wonder how long a Hospital will tolerate a doctor who:


1. Does not receipt pills,

2. Sustains that symptoms are GREAT,

3. Starts crying in front of his patients and

4. Mentions that he can feel the patient's feelings in his own body…


I remember you mentioning the differences between what I do and TTP. Hence, I need a name for the technique. Until I can give it a better name, I call it ED's (E-motional D-ynamic S-timulation).

I am open to any suggestion about technique, name or applications.

Thank you for sharing your process.



In your pioneering, you might consider the possibility that you can implement TTP (and variations of it) more easily in "the real world" if you do it subtly and refrain from calling attention to it.


In this way, patients may come to you for your reputation and for the results you get while you do not risk attracting interference from your school for implementing something "new."




The Pioneer's Reward


is sometimes to get some













Clip: http://api.ning.com/files/icE75stw9Kphf08Y





Thursday, June 25, 2009


Puts Foot Down

Last tribe meeting, I mentioned using the 5% solution with my kids, to break up an argument.


In colloquial terms, "I put my foot down". I basically silenced them both long enough to query them individually and establish what was the tipping point in the argument (one spit at the other). Then I prompted an apology, which was accepted, and they were on their merry way. I didn't manipulate them with an "old rock" behavior so much as use my authority constructively, as opposed to blowing my stack. More about blowing my stack below.

Subsequently, when they have been non-compliant (getting ready to go out in the car, get ready for bed, do chores), I ask them if they want to play "that" game, the one where I ask them nicely over and over, and they insist on refusing, over and over, and then I lose my temper. Most times, they giggle, say "no, not that" and snap to. This is a new resource, a new behavior and has shown some promise. My wife reminds me I still have a ways to go in this area.

Tonight, I have a relapse of sorts, but remember to try new skills. Me and two sons are riding home, they are arguing about a melted cheese stick in the back seat. They start throwing stuff at each other. I ask them about playing "that" game where they disobey after I ask nicely, and then I lose my temper. They say no to the game, but keep acting out. At one point, my 6 year old hits me sharply in the head. I yell loudly, ragefully. I find a safe spot to pull over and get out and we talk. I move all the stuff out of the back seat so they can't hit each other or me. My 6 year old is crying, scared, wants a hug, so I embrace him. Soon we are back on our way. I ask the 9 year old to ask me how I'm feeling and he does. I tell him how I'm feeling, then ask him to repeat it back to me. He does well. Then I ask the 6 year old how he is feeling. He is scared from the arguing, wants a hug, etc., I mirror his feelings with understanding.

We finally get home and they need to get ready for dinner, but distracted with something, 9 year old goes to timeout for blatant defiance. Later, when all 4 of us are eating, I start to explain what happened. As soon as my wife says, "It's wrong to yell or curse at the kids" I get testy and tell her to f*** off, you 're interrupting my story. But It escalates instead. She starts telling me how wrong it is to curse and yell and I respond, "I curse and yell because that's what you want me to do, it's what I want to do. We do it because we like it."


Later, after de-escalating, I explain and apologize, and true to form, my wife interrupts my apology, corrects it, tells me what I did wrong. I point out to 6 year old and 9 year old that this caused the most recent outburst, the criticism aimed at the confessor before his confession has been completed. I am able to do this without getting hot-quality angry.

I had the feeling soon after, "she sucks the life out of me". Thinking of my tribe brothers comment, "something's going on if we pretend we don't like it", I realize I like being sucked on, it's erotic, it makes me feel alive. Just like the arguing creates the anxiety that makes me feel alive, post-climactic arguing has a body flush of hormones, similar to sex. Sounds like something Chief would say. So I say I don't like it, but it's the most excitement I've had all day!

Minor point on children: television is a huge medicinal for kids and should probably be avoided 100% for kids under 2 or 3.

I've been noticing my own medication pattern, too much espresso in the day time (for focus, mental lift, stimulates creative fantasies about a better life), taking Ambien at night to fall asleep. After extended exercise, I sometimes medicate with low-quality food (eg, ice-cream).

Thank you for sharing your process.




People Who Like to Argue


may also like to deny


they like to argue.





Clip: http://dreamskynet.files.wordpress.com/



Wednesday, June 24, 2009

Confronting Childhood Abuse

Dear Ed,

Thank you for your continuing support. I continue to measure my activity.

I notice a lag between my reports and a decline in my Big Wave activity. I take the issue of procrastination as an entry point on the hot seat at tribe. The chief guides me and we discover that I don't want to disappoint people. We take the feeling of "disappointing others" and work through the judges. I can now send my Big Wave report. This stuff is pretty cool.

I confront my mother in person and my father via letter regarding our relationship and the abuse. My father is “hurt” by my speaking openly about the abuse and refuses to meet with me in person, so I send him a letter. My mother starts to make excuses for why my father refuses to meet with me and I recognize her role as the enabler continuing. I notice that she’s very good at being an enabler. I have an agreement with my mother to hear me out and then when I am finished she may have as much time as she wants to say whatever she wants. I write down everything I want to say to her so that I do not leave anything out. My mother sits and is listening to me. I finish speaking. She does not respond. She sits there glaring at me. The silence continues. She then speaks for the first time and says, “Well, I think I’ve said everything that I need to say.” I respond by stating that that was actually the first thing that she’s said. She then picks probably the least of all the abuses that I tell her about, and insists that that particular abuse never happened. I say that just because she doesn’t remember does not mean that it did not happen. She doesn’t deny any of the other abuses. She is pissed. I ask her if there is anything else that she wants to say and she says, “No.” I then tell her that I’m taking a 90-day vacation from our relationship and that I do not want her to contact me during that time. I tell her that I will contact her after the 90 days and then we can decide what we both want to do at that point. I tell her that I am willing and want to have an intimacy-based relationship and that I am not willing to have a control-based relationship. She leaves.

I now write my father a letter and take a 90-day vacation from that relationship.

I think that I may now understand my father's weird need to control the people that he loves most. I am in my teens and I am going through the contents of an old cedar chest. I find a picture of my father as a young man. Next to him is a beautiful girl. She looks a great deal like him. I take the picture to my father and ask him who she is. He tells me that is a picture of his sister. I ask him where she is. He tells me the story. He is extremely close to his sister growing up. He is a football player in high school and she is a couple years younger and is a cheerleader. They have a great relationship. He is driving the car. His mother and sister are both sitting in the front seat. His mother is sitting in the middle. His sister is playing with the door handle. It is the kind of door handle the pushes forward to open rather than pulls to open. He is driving around a mountain. He says he is probably driving too fast. His sister does not have a seat belt on. She is playing with the door handle when the door opens. She falls out of the car and down a cliff and dies. He stops talking. He then continues and tells me that years later he would often find himself sitting down and writing letters to her as if she were still alive and then he'd realize that she was dead. He does this many times. My father's control model may be that if you don't control those you love, they die.

I have more understanding now. I cannot change my father, but I can change myself and be willing to do the hard stuff like going through the rocks process and taking the hot seat. Perhaps as I change for the better that may change him.

I go to tribe and take the hot seat about feeling that rejection is bad and that I don’t want to be rejected. The chief helps me find the Happy judge. I notice the bad feelings about rejection dissipate. My wife comes to the tribe meeting. She watches me take the hot seat. Her participation is minimal. We talk about that at checkout. She notices that she did not participate fully and says that she wants to. We are driving home and she tells me that she is glad that she attended the meeting and that her intention to go to meetings with me every other week. I notice that issues of finding a baby sitter for our son instantly dissipate so that both of us may attend tribe meetings at the same time.

I think about Charles Faulkner and get his CD on Intuition. I listen to it. Charles describes how you can learn from other people’s processes and apply their process to whatever it is that you are doing. I am programming a system and back testing it. I have a block. The program is not working. I do some work with Road Maps and create more system dynamic models using STELLA. I go back to programming and make some progress. I hit another block. I solve some math problems. As Ed says, “to solve a problem, solve a problem.” I notice this helps and I continue programming. I get a little more done and then I have more blocks. Bigger this time. I think about Charles' CD on Intuition. I call a childhood friend who is a concert-level classical guitarist (he also plays rock, jazz, and blues) and he agrees to meet with me so that I can interview him about his process for learning a new and difficult piece of music. He meets with me. He is describing his process for learning a new piece of music. He tells me how he first takes the music in small pieces and learns that small piece very well. He uses music theory to find the most efficient finger movements to play the piece. He plays the music very slowly to imprint the finger movements. After he masters that small section of the music, he moves on to another section. He continues this process. He sets no goals whatsoever. He simply continues the process until he masters the piece.

He lives in the town that I grew up in and that my parents live. He tells me he sees my father at the grocery store and that my father is very rude to him. I tell him about my experiences growing up. He listens to me. He then gets up and starts walking back and forth shaking his head. He looks at me and says, “I never thought about it much at the time, but I remember NOW my mother telling me several times. I mean she said it a lot. She said, ‘I don’t think [Names]’s parents treat him very well. Please tell [him] he is welcome over here anytime.’” He continues, “[Name], she knew. She knew.” He is still walking back and forth. He says that he is so sorry that he didn’t know. I say I’m better now. We talk for a long time.

A tribe member tells me his process for programming. I don’t even realize that he is sharing his process with me with the positive intent of it helping me with my process. He is careful not to tell me what I should do. He doesn't "should" all over me. He shares his process. He tells me how he finds code that is already written that he can apply to whatever he is trying to program. I am simply enjoying listening to him talk and find what he says interesting. In that moment I am not aware that he is actually helping me. I actually think that I am helping him by being a good receiver.

I now decide to write a simpler trading program and back test it. I notice that I’m just working on one little piece at a time. I notice I’m reading through programming manuals looking for the most efficient means of writing the code. I notice that I’m looking at the programming code for other computerized trading systems and find some strings of code that are exactly what I need. I finish programming and run the program. It works! I back test it and change the inputs. I do some optimizing. The programming works. The trading system is not that good, but that’s OK. I am learning more and more about how to program and can now apply what I’ve learned and continue my process of doing all of Ed’s trading tutorials on the TTP Website.

I find myself gravitating toward more people that express willingness to be in the moment of NOW.

Thank you for sharing your process.




Child Abuse


hurts the child - and trains him


in the fine art

of delivering


child abuse.




Clip: http://www.wunrn.com/news/2008/12_08/



Wednesday, June 24, 2009


Response to Working with the Wife

(inter-Tribe email)



Thank you for sharing your experiences and feelings. You make tremendous progress since the April TTP Workshop.

I am a receiver during your rocks process at the April Workshop. I am also a receiver for your rocks process at the IV Tribe meeting last week. At the beginning, last Thursday, a sinking feeling engulfs me as you begin to descend into the same distressing signature form that got us nowhere in April (back then I feel like calling for 911 emergency services to take you away).

Then Thursday, under Ed’s skillful guidance and with encouragement from Tribe members, you appear to reject the signature form and and open your mind to new ideas. In the midst of your session when things stall, Ed redirects the hot seat to another member with an issue that he says is relevant to yours, encouraging you to be open to information that is relevant to your own issue. To your credit, you pay close attention and visibly fight your tendency to reject advice or information that seems contrary to your established world view. When you return to the hot seat you make real progress.

I empathize with your situation. Some of this must be painful. Your willingness to deal with those feelings is admirable. Good luck and please keep me informed.


Wednesday, June 24, 2009


Working with the Wife

see previous

Dear Ed,

I report on my Big Wave. I was one week abroad and participated at two Tribe meetings in [City] and IV (that is the explanation of the delay in my report). I went through two rock processes. Some Tribe members mentioned that this traveling shows that I am very committed to do the work. Indeed, it only shows my commitment to travel a lot and to sleep less. The real demonstration of commitment are the results. Hence, I report about them.

On the hotseat at IV I work on “rejection” and how to receive my wife's feelings. I do not talk to my wife between the hotseat and my flight. As I arrive, she has been reading old love letters from other guys and her diaries and comparing her old relationships with the current. We have a long talk. Succinctly, I hear that 1. She does not find me attractive, 2. She supposes that she was very in love with me at the beginning of our relationship (I deduce that this is not the case anymore). This information is somehow appalling to me.

The curious part is that I mentioned her both issues several times before (“you don't love me! You don't like me!”) and only generated evasive, shutting down, rejection and her leaving the room. This time we have a long conversation about the stuff. I suppose that this time I am allowing her to express her real feelings about me. We commit to have a longer conversation and find out what we both want from our relationship.

I also observe that my children cuddle me more. I feel that the communication with my son improves continuously. This was a major issue to me, since I felt that my son was afraid of me even during casual activities.

I keep on working. I thank you for your support.

Thank you for sharing your process.




The Game of Rejection


requires two willing players.





Clip: http://datelikeagrownup.com/blog/wp-




Tuesday, June 23, 2009


Dealing With Father

(Post-Workshop Report to Support Team)


Dear Ed,

I notice I have some hesitation in writing updates. I thank you all again for your reports and updates on the progress in each of your waves, and I thank you for your interest and support in mine.

I feel I am spending much more time with my father. We have been working together on many things and I feel very supported.

Since my last update, we have been regularly going out to dinner as well as making time for dinner at home together and frequent conversations.

I notice I do not feel the same anger coming from him and do not feel feelings of confusion over his sporadic strange behavior. I feel more attracted to the idea of opening up and sharing my feelings with him. About a month ago, I am invited to prepare a speech to present to the rotary club about being the valedictorian of my school. One of the prompts I touch on asks about my toughest obstacles growing up – here is a part of the speech:

“I believe both my greatest gift and greatest challenge has been my relationship with my father and life at home. I moved in with my father when I was five years old and I felt as though it was my older brother and me against the world. I remember being very afraid of my father for many of my early years. I learned to be very independent. In many ways my father and I grew up together. For much of my life, I was terrified of him, afraid of confrontation, afraid of being a burden. He was not at all like other fathers I knew, and I was afraid that I didn’t fit into the picture my father had in his mind of his life and his agenda. When I was in middle school, he often left me home alone for long periods of time when he would go on trips, leaving me to figure out how to make meals and get to school every morning. I lived with my friends through much of this time; they were my extended family.

I felt I was a ripple in my father’s plan, not worth his time, his money or his nurturing. I remember contemplating how I was going to tell him that I wanted a haircut or that I needed my physical in school to play sports, out of fear that he would respond with anger and that he would question the cost. On many levels, I feel he was unaware of exactly how to raise a daughter. We lived very separate lives and I learned from an early age how to be myself and how to be self -sufficient. I feel that much of my determination and drive arose from these experiences and circumstances. From these experiences grew a desire to be successful in my own sense of the word. From my upbringing, I want to achieve my goals for me. To him I also owe much of my communication and confrontation skills, desire for self growth and courage to challenge what is presented. My father is sometimes neurotic, inconsistent, terrifying and impossible to be close to. He is also sometimes impossible to reason with and impossible to understand. But he is a brilliant man and we both have made efforts toward growing inside ourselves and thus growing closer to each other.

And to him I now go for all my questions of existence and the bigger picture. His is my father and my greatest teacher. After researching the ideas of success and contentment and talking to many people about what they believe, I still have absolutely no idea. But I guess I believe that contentment lies in purpose, in of finding what it is that you feel you were put on this Earth to do. And I believe that many people spend their whole lives seeking happiness and contentment, and they couple this desire with an idea of success as if success leads to a permanent state of happiness. Perhaps this is so, as long as the meaning of success is revised from our culturally accepted definition. The one I’m referring to is based in six-digit incomes, huge houses and expensive cars. We label those people as successful who have achieved those goals, but if those same people lack true purpose, they are often quite undeniably unhappy.”

On the morning I am scheduled to present my speech, my father asks if he can attend and watch me present. Although I feel some fear and still notice some pain of the possibility of being misunderstood, I tell him he is welcome to come and tell him there are some deep thoughts regarding him and my relationship with him included in the speech.

I notice he is accepting of the circumstances and I feel his support regardless of the circumstance. He says “it is what it is” and smiles. After I am finished, he tells me he is proud of me and tells me I have strength in writing and public speaking. I feel very close to him and notice feeling appreciated and loved. This is a huge step for us because I have many issues I deal with of feeling inadequate and unappreciated.

In the last days of school, I prepare my formal speech to address the audience and my graduating class of [Name] high school. I feel much support from my father in this process as well. I read a draft of my speech and he acknowledges my strengths and offers very helpful and open ended advice on how to make the theme in my speech more connected and more powerful.

My Aunt and Uncle on my father’s side and my Mother, Sister and Grandma all travel to be there for my graduation. I feel extremely supported during this time and appreciate them taking time out of their lives to be there. I notice I am very aware of the money that is being spent on their trips. My father, my Aunt and Uncle offer to help me practice my speaking speed and inflections the day before graduation. I appreciate their love and willingness to be there with me.

My friends and I also schedule a brunch for our families the day of graduation. My entire visiting family attends together and we celebrate the day. I am overcome with feelings of love for my family and friends and feelings of being supported and connected to my father. My father plays a song he wrote for me on the guitar. It is a very emotional time with many tears. It is beautiful.

My father and I are currently finalizing my college plans and I am enjoying much communication and stability regarding financing my college education. My father and I are also planning a three week trip together to Europe in late august.

Thank you for your support in my progress with my father.

Thank you for sharing your process. 


I might venture a guess that your father feels very lucky to have you for a daughter.

Tuesday, June 23, 2009


Wants Data

Dear Ed,

I would like to write a program that duplicates the Donchian six month system you have in the chart server section of your website. Would you be so kind as to provide the data (S&P, 30-Bonds, Soybeans, Copper and Eurodollar) you used in that system so I can recreate the results?

I do not know the whereabouts of that data. 


Perhaps the next time I update that page, I can include a link to the data base.

Tuesday, June 23, 2009


TA Software

Hi Ed,

I notice this message on FAQ right now:
"Thank you for [the demo of your] TA software in such detail. It is a dream come true! ..."

I don't remember to read anything about it in the previous posts: I wonder if you could provide some information about the cited software.

This is proprietary software that I sometimes share person-to-person with IV-Tribe members

Tuesday, June 23, 2009


Response to the Living Years

(Inter-Tribe email)

See Previous


Dear Ed,


Thank you for the lyrics. I sense a lot of guilt and remorse in them, and not a lot of letting go. The author talks about what he wishes he'd done in the past, and how it will affect his future. I get the sense that the author is training his child to repeat this cycle.

I contrast this with your feelings about your children which you share with us. They are all in the now - both your children and your feelings.


Thank you for sharing and for staying in the now.


Tuesday, June 23, 2009


The Living Years


Dear Ed,

I think of this song, about my father and my own children.  Thanks for sharing with me.

Video Clip: http://www.youtube.com/watch?



The Living Years

by Mike & The Mechanics

Every generation
Blames the one before
And all of their frustrations
Come beating on your door

I know that I'm a prisoner
To all my father held so dear
I know that I'm a hostage
To all his hopes and fears
I just wish I could have told him in the

living years

Crumpled bits of paper
Filled with imperfect thought
Stilted conversations
I'm afraid that's all we've got

You say you just don't see it
He says its perfect sense
You just can't get agreement
In this present tense
We all talk a different language
Talking in defense

Say it loud, say it clear
You can listen as well as you hear
It's too late when we die
To admit we don't see eye to eye

So we open up a quarrel
Between the present and the past
We only sacrifice the future
It's the bitterness that lasts

So don't yield to the fortunes
You sometimes see as fate
It may have a new perspective
On a different day
And if you don't give up, and don't give in
You may just be o.k.

Say it loud, say it clear
You can listen as well as you hear
It's too late when we die
To admit we don't see eye to eye

I wasn't there that morning
When my father passed away
I didn't get to tell him
All the things I had to say

I think I caught his spirit
Later that same year
I'm sure I heard his echo
In my baby's new born tears
I just wish I could have told him in the living years

Say it loud, say it clear
You can listen as well as you hear
It's too late when we die
To admit we don't see eye to eye

Thank you for sharing the song.

Tuesday, June 23, 2009


Feelings About Father's Day

Dear Ed,

On Father’s Day my two natural children call me with good wishes. Daughter (25) is cheery as ever, calling from the road on her way back to [City] as she returns from an outrigger canoe race in [Name] Beach where her team takes 2nd place and she wins a “heavy medal.”

My son (27) calls from [City] where he now lives with his fiancé, a Middle School sweetheart with whom he re-connected last year. She is a delightful animal-loving person with a backyard menagerie. We all love her and are very happy for Him. He is my son whose drug problems nearly killed him in his later teen years. He is now fully recovered to my knowledge, and gainfully employed as a master CNC machinist, a job that fits his personality to a “T.”

My stepson (37) does not call. The prior Friday we cross paths as I return my grandchildren (his two kids), but we spend only minutes together. I am sad that our relationship is not stronger. But, he is an excellent father who spends a lot of quality time with his children. For that I am grateful.

Thank you for triggering these feelings. They simmer below the surface of CM for days but only now pop into awareness to the point that I can experience them.

Thank you for sharing your process.

Tuesday, June 23, 2009


Training Your Powers of Observation


Dear Ed,

I thought that after a Financial Crisis, you could use a few things to note when investing:

Please spend 30 seconds to look at the picture ....then read the text below it.



If after 30 seconds you didn't notice a shark in the background, you probably need to train your adversity quotient.

It is the same when investing, you always get attracted to those 'big' returns...

Be careful of the lurking adversity.


Tuesday, June 23, 2009


Photos of Jet Aircraft


Dear Ed,


Thought you might like this:

LoveAffairwiththeair.pps (Slide Show)

Regarding your work on Radial Momentum, I like the new shots of your bubble - specifically slide #10, 11, and 13.


Tuesday, June 23, 2009

Tough Decision

Hello Mr. Ed

I am truly enjoying & learning a lot from FAQ's witty wisdom. Thanks for sharing.

Meanwhile here's something on decision making dilemma.


A group of children were playing near two railway tracks, one still in use while the other disused. Only one child played on the disused track, the rest on the operational track.

The train is coming, and you are just beside the track interchange. You can make the train change its course to the disused track and save most of the kids. However, that would also mean the lone child playing by the disused track would be sacrificed. Or would you rather let the train go its way?

Let's take a pause to think what kind of decision we could make......

Most people might choose to divert the course of the train, and sacrifice only one child. You might think the same way.

Exactly, to save most of the children at the expense of only one child was rational decision most people would make, morally and emotionally. But, have you ever thought that the child choosing to play on the disused track had in fact made the right decision to play at a safe place?

Nevertheless, he had to be sacrificed because of his ignorant friends who chose to play where the danger was. This kind of dilemma happens around us everyday.

In the office, community, in politics & especially in a democratic society, the minority is often sacrificed for the interest of the majority, no matter how foolish or ignorant the majority are, and how farsighted and knowledgeable the minority are.

The child who chose not to play with the rest on the operational track was sidelined. And in the case he was sacrificed, no one would shed a tear for him.

The great critic Leo Velski Julian who told the story said he would not try to change the course of the train because he believed that the kids playing on the operational track should have known very well that track was still in use, and that they should have run away if they heard the train's sirens..

If the train was diverted, that lone child would definitely die because he never thought the train could come over to that track! Moreover, that track was not in use probably because it was not safe. If the train was diverted to the track, we could put the lives of all passengers on board at stake!

And in your attempt to save a few kids by sacrificing one child, you might end up sacrificing hundreds of people to save these few kids.

While we are all aware that life is full of tough decisions that need to be made, we may not realize that hasty decisions may not always be the right one.

'Remember that what's right isn't always popular... and what's popular isn't always right.'


Thank you for your parable.




Tim Geithner

(Secretary of the Treasury)


Sometimes the best move

is to refrain from intervening.




Clip: http://4.bp.blogspot.com/_xXIgKGI_4oo/




Tuesday, June 23, 2009


Defending What Is


Dear Ed,


I notice there seems to be a lot of anger / frustration regarding the markets.  I am not sure this is the "big wave" I desire.

I have some old computer monitors - this could be a great new business startup in this economic climate!

I notice these videos (one on FAQ) I think about anger and expressing anger.  I notice I feel numb, somewhat, in that I suppress a lot of anger or medicate the anger.  I wonder if I, in my current state would have attended the Boston Tea Party or been aware I was getting screwed by King George? 


My favorite all time movie and character is William Wallace in Braveheart - to me, I relate with this character as he is both sensitive but very focused and brave. I feel I want that balance and utilize "righteous anger" when appropriate. "Righteous anger" meaning anger that is appropriate in the face of injustice or to protect myself, my family or country.

Clip: http://www.youtube.com/


I talk with my son this evening about paranoia when we work on the new house together. We talk about the positive intention of paranoia to some degree is to stay awake to protect ourselves, to remain vigilant or a little leery of harm. 


I think about the rocks process last week also.  [Name] taking ownership of the mousse, the context of ownership, that something is mine and it is right to take full ownership.  That it is ok to protect and defend what is mine.  I feel anger is ok to protect what is mine, but humor can work also.

Thank you for sharing your process.


In the movie, Braveheart, William Wallace (Mel Gibson) dares to go against the trend - and receives an appropriate outcome.


You might consider taking your feelings about <anger> and <insurgency> to Tribe.






You can prove your courage

by bucking the trend


and also


by riding with it.




Clip: http://drrockshow.com/blog/



Tuesday, June 23, 2009


Learning About Dynamic Systems


Dear Ed,

I log 31 hours this week. I feel more and more confident in designing models from scratch. I have developed a a great relationship with Stella (software). She can be a bit complicated at times, but the more time I spend on her the easier she becomes.

Thank you for sharing your process.

Tuesday, June 23, 2009


Making Emotions into Enemies


An e-mail from an investment advisor:


You are not as smart as you think you are

Our emotions are our biggest enemy, at least when it comes to investing. We should all know this. If you don’t, stop making your own investment decisions right now.

Our emotions lead us to do the opposite of what we should be doing. They lead us to buy high and sell low. They make us excited when we should be scared, and scared when we should be excited. They make us slaves to the stock market; they let the market become our master.

In TTP we hold that all emotions have positive intentions. 


When you come to hold your emotions as allies, rather than as enemies, you might discover yourself becoming one with the flow.

Tuesday, June 23, 2009

Becoming The Jademaster

Dear Ed,

One day, the young man observes, "The stone I hold is not genuine Jade." –Ed Seykota, The Trader's Window. Excerpt from Jack W. Schwager, The New Market Wizards (New York: Harper Business, 1992), Prologue: “The Jademaster”.

After ten 7+ hour life-changing meetings of the Incline Village Trading Tribe, 60k miles flown, amazing new friendships, a bit of cooking, loads of delightful musical jams, plenty of yard work, dozens of system dynamics exercises, many rocks processes and nearly no discussion of trading, I have the great pleasure of understanding what it means to be the young man in the Jademaster story.

I am in Ed's yard raking pine needles all day, while imagining the trading metaphor "raking in the profits...filling up the bags...with money...bag after bag after bag".

I describe a trade in my discretionary account to Ed: Although I am focused on other work at the moment of the trade, my attention is drawn to my order entry screen. I enter the trade, naturally, without hesitation, and with very little thought, and without feelings of greed or fear, near the best price of the day. It is not impulsive - it is something I simply need to do, and just do it. I enter my protective stop & immediately move on to another activity, not thinking of the trade again until I review my statement the next day and notice the trade is substantially profitable.

Ed suggests noticing this trading state of mind - and I might imagine trading only when I am in that state. No Fred's playground here - this is the "stick to the system" state of mind.

It's very simple, if that's what you want.
Thank you again for your help & guidance,

Thank you for sharing your process.


Tuesday, June 23, 2009

Dealing With the Wife


I am aware of the risk of interpreting my observations in a light that favors me. But it is impossible to analyze a system from within. That is why we cannot see our own issues and need a Tribe to resolve them. I am therefore very thankful for any comments about my report, since you are an external observer and can help me to identify my issues.

On Saturday, Ed and I have a very long conversation about my relationship with my wife. I realize that some of my intents to help and support her are just trying to fix her, and that it helps her to avoid intimacy and show her feelings. We are both part of a well functioning system without villain or victim. I commit to accept her the way she is, and not to try to fix her.

The next day (I am still on my way home) she suddenly decides to open all her old notebooks and read all the old love letters from / to previous boyfriends. She never wrote me a love letter. I remember writing her at the beginning of our relationship, but stopping after she mentioned that she did not like this demonstration of affection. When I am abroad, my wife does not call me by phone (my children do), and she complaints if I call her more than every three or four days.

As I arrive home she mentions her observations about previous relationships. She re-reads how deep in love she was with her last boyfriend before me (she mentions that she presumes that she also was very in love with me at the beginning of our relationship). It is obvious to me that her feelings have changed. I remember mentioning several times in the past that I am very in love with her, and [how] she answers that love changes with time and she does not feel the same as before.

She mentions that she does not know what her ideal man looks like. My eyes go wider and wider. I say “I don't know if you find me attractive”. Long pause. “I find you sweet”. I feel my stomach sink to my pelvis. She mentions a part of me that she likes, and some things that she does not. I feel attracted to her. I like her a lot. I remember her mentioning some months ago “ich hab´ Dich lieb” (in German, the weakest form for expressing affection [I am fond of you]). I wonder how it feels to have intimacy with a guy you don't really like and maybe you don't really love anymore.

I remember mentioning the issue “do you still love me? Do you like me?” several times in the past and my wife reacting with evasiveness, shutting down and leaving the room. Now I can express me wondering about her feelings and leave her room to express them.

My wife mentions that the whole work with the kids (“trying to survive”) leaves her no room or energy for affection or intimacy with me. In the morning she is usually overwhelmed, hectic, and screams at the children to leave the house on time. This morning she is not here. I wake up the children 30 minutes later than usual. They are extremely cooperative. They dress themselves alone, take their breakfast without making trouble. I am completely calm. As they leave the house, nobody shouts; they hug me and kiss me goodbye. Are our children so difficult to raise, or are they helping her to experience life as an almost unbearable suffering?

Her previous boyfriend ended the relationship due to her lack of passion. I always thought that it was her limitation. I wonder how she would feel with another guy. I wonder if another more open, more receptive guy would make her feel better, f*** her better.

And here, I realize: I am thinking about fixing her. I am thinking about her being happy and fulfilled the way I think a person should be happy and fulfilled: emotionally, sexually, physically, financially. She can experience what she will. She does not seem to have a problem with the way she is. I am the one with the problem!

I realize that I have to take the issue “I have a fulfilling relationship with my wife” to the Hotseat.

And I want to have a long and complete conversation with my wife about what we both expect from our relationship.

Chief, you and the Tribe help me to do the work and make it possible. I thank you.

Thank you for sharing your process.


As you continue on the path from control-centric to intimacy-centric relating, you are likely to excite new responses from your wife. 


To the extent that you receive these responses lovingly and supportively, she is likely to open up even more to you.


To the extent that you insist that she change her behavior, she is likely to withdraw.


From an Aesop Fable:


The North Wind and the Sun want to find out who is the mightiest.  They devise a contest to see who can make a man take off his cloak ...




The North Wind Blows Mightily


and this acts to motivate the man

to pull his cloak

more tightly about him.





Then The Sun Shines Warmly and Gently


and the man removes his cloak.





Clips: http://www.robertlpeters.com/



Tuesday, June 23, 2009


Performance Report

see previous

Hello Ed,

Thanks for your fast response. I have noted your comments.

I will prepare the report for you and tie in the withdrawals from the accounts to the data otherwise it will appear as losses on the statements.

But until this document is ready, here is an equity curve plot for your attention.


There have been many different accounts and products traded and most of the profits have been withdrawn, which is why this job will take a while to compute.

The trading frequency is as I intended it to be while designing the system. Longer term models have to endure larger drawdown's, which do not suit my style.

My system produces approx 70 signals each day (unfiltered) and around 10 (when filtered).

I am monitoring around 3500 stocks on the LSE, at the end of each day I slideshow through them and decide which signals I will take based the following:

1. The quality of the current chart pattern when signaling a trend change.
2. The current market overall conditions
3. My current gearing level
4. My risk
5 My net position.
6. My intensity level at the time based on my energy (at the moment it is a quiet summer market and I am rather tired, hence size and participation level reduced).


I have learned to reduce activity while feeling tired, or suffer losses as a result (until around August comment clarified).

I have observed over the years that the number of smooth clean trending stocks is declining, as are the general score readings from the filters I use. The reasons are due to increases in computer-bots trading and electronic SETS dealing instead of the old market maker books. (Observing in longer time frames, can improve the scores somewhat, but does not suit my style due to large draw downs).

Signal to noise levels have dropped and continue to drop apart from when a violent move develops.
Sadly I am chasing a declining number of "good stocks", which is the root of the problem I am having to get the required risk amount in my portfolio maintained at optimum levels.

My success is attributed mainly to being able to find stocks with good trending qualities, and this is my edge.

I spend about £20,000 developing this system to automate the selection process. Its basically a search engine for stocks. I designed it myself and I employed a bright student friend to program it in VB.net.

This system gives me a nice edge over "regular traders" who may follow a handful of stocks and just trade them, as this program is also able to search out whatever criteria I need to find. I can send you some more examples later.

Filtrations are as follows

1. Spread % (bid - ask)
2. Noise ( a short term indicator I devised to compute unwanted price noise as opposed to "clean" price action
3. Noise 40 (which measures noise over 40 bars)
4. Signal to noise
5. Signal to noise over 40 bars
6 Volatility
7. Trend 10 ( measures the cleanliness of the current trend, E.G if a stock rose X% every day for 10 days, the maximum score would be achieved )
8 Trend 30
9 Count ( Number of trades on each day)
10. Average count
11. Frequency ( in this case F = number of bars between trend changes based on the system)
12. Contramove ( Measures the maximum % swing contrary to the underlying system trend position)
13. Activity ( measures the number of unchanged days a stock has )
14. K potential ( computes the Kelly ratio for each stock based on the system)
15. F potential

When all filters are computed they remove about 60 stocks from the 70, leaving me with the best ones. I do not take every signal, and I do not automatically reverse from long to shot.

Thank you for your materials.


The materials as they stand do not demonstrate your MAR or prove any of your claims by associating them with brokerage house statements.


My sense of your "system" is that it is largely subjective and depends heavily on having you in the loop as an active element.


Your actual trading system comprises your mathematical formulas and your own emotional influences.


In this regard, you might consider finding a way to qualify the emotional component of your system.


You might consider taking your feelings about <trading> and <raising money> to Tribe. 


Tuesday, June 23, 2009

Progress Report

Hi support team,

Here is my latest update. I remember feeling confused and stressed when writing this last. I have to say right now I feel calm and clear.


Anyway, as I recall, I receive very insightful comments and suggestions and offers of support. Thank you. During the report period I meditate, exercise and relax. I coach baseball.  The team improves and looks great. I develop a spreadsheet for the markets to trade. I collect and enter information on futures contracts, ETF’s and Stocks. This results in clarity with the futures markets.


I maintain a spreadsheet list of markets to trade. I look at various account sizes and explore capacity issues. It is much clearer now than my memory as of the last report. I target a capacity of $600 million as an amount I will design my system to handle. This is an amount far beyond my original thinking and even though it places a limit on my Big Wave it feels right at this point in the development.

I track my big wave progress in a spreadsheet. I have 31 big wave sections. I now have 2 big wave sections complete, markets to trade and capacity.

I seem to spend an average of 12 hours a week on my big wave

In response to the last report:

Ed says:

I wonder where you get the idea that what others think of you is any of your business.

You might consider taking you feelings about <judgment> to Tribe.

This is excellent. I explore memories and contemplate the idea. I realize that this is a repeating drama running my life. My memory of childhood is that my family is embarrassing. We have little money, the house is a mess, my dad is a slob, and he embarrasses me. My Mom teaches me to feel this about everything (especially my Dad) and to fear what others, including parents, think of me.


I look at my life now and see remarkable similarities; I feel embarrassment about my house, I fear what others think about me. I wonder if most people learn this behavior / idea also? I think / know my kids learn it. Thank You Ed for this insight, I take this to tribe.

Thank you all for supporting me

My Big Wave

Part 1 - I have a trend trading system I know is right. It is logical, it is in all trends, it is back tested, it frees up my schedule by automating trading and it attracts money to me. I love to follow my system.

Part 2 - I share my system with others through a limited power of attorney money management arrangement. My system is a source of income. My system builds wealth.

Thank you for sharing your process.

Monday, June 22, 2009

Dealing With the Loss of a Son


Dear Ed,

Thank you all for your hard work and perseverance on the landscaping project Thursday & Friday. Everyone works really hard and we achieve great results - Great teamwork!!! Good job!!!


I feel extremely tired from the meeting Thursday evening and feel somewhat disconnected from my feelings. I could not put my finger on exactly the feeling other than feeling exhausted. I enjoy working on the landscaping project and enjoy the encouragement and all the “good job” I hear Ed giving out as everyone is working.


At home I have a great father’s day lunch with my children and my oldest son who is struggling with addiction, depression and anxiety is there also.


I try to connect with each child and give them a really warm hug to give them their father’s love. After lunch my son and I go mow the grass at my new home (the heat index is about 105 I think). I mow for awhile and then had to run the water hose over my head and drink plenty of water to cool off and I do that repeatedly (the weather is really nice in Incline by the way). At one point I sat down in the shade to cool off and my son continued to mow and I began to feel the deep sadness and loss of my oldest (other) son. 


The loss of all the promise, the hopes and dreams of what he would accomplish and become in life. I began to weep and let the tears flow freely in the heat. I still am hopeful that he will be restored someday but I had pushed those feelings down very deep perhaps hoping that he would snap out of it. 


I feel better after I weep about this but I also feel that is a pain that will continue and that I need to feel.  Of course I also weep after reading [Name]’s card and I enjoy the time with her so much.


Thank you Ed for sharing your feelings about your son and to be willing to model being completely transparent in your feelings. 


I grew up in a family that is mostly devoid of warm human touch. Thank you all for the warm hugs. I took those back to my children and notice a big difference when I hug them, tell them what a good job they are doing and listen to their feelings and ask them to tell me more - and they do!

The pictures are of my son (18) who graduated this year from high school with the highest honors.


Riding a 4 wheeler in the mud


Running hurdles in track


Punting for the high school team


Thank you for sharing your process.

Monday, June 22, 2009


Receiving A Daughter's Love

Hi Everyone,

Happy Father’s Day a little late!!!


I try to connect with each of my children and receive them, listen to them, love them unconditionally.


[Name] is 14 and makes [a] card for me for father’s day yesterday and also insisted we go out together yesterday evening to dinner, dessert and a movie. We have a great time together and talked and talked a lot about lots of nothing but there is a lot of laughter all evening.


My daughter at 12


Remembering her


My relationship with each of my children is making tremendous strides from our work at IVTT.  Thank you so much to each of you for all your hard work, dedication, commitment and support to myself and everyone.

Both of my Daughters

I Love You All.

Thank you for sharing your process.

Monday, June 22, 2009

Getting Free From the Causal Model


I very much enjoyed your writing on the cause-and-effect model. Not only am I continuing to receive many "Ahas", I am also having fun seeing this model in all the different ways it is being used (e.g. politics, religion, finance, news, etc.).


I don't know if this makes any sense or not, but I feel as if I'm no longer under the spell of manipulation.


A weight has definitely been lifted. Thanks a million!!!

Thank you for sharing your process.

Monday, June 22, 2009


Hi Ed,

I read this article:




This is the only opportunity to know the lovely girl and I understand that, at least, I don't know anything about her. But I feel so sad. There's no past, no future, no words to say: it's a pure moment of "now".

You might consider taking your feelings about <losing people you love> to Tribe.

Monday, June 22, 2009

Developing Social Skills

Dear Ed,

First of all thank you for your ongoing support.

Schedule & Measurement Report

1) Spend 10 hrs per 2 weeks on meeting & talking to strangers, or talking to people I usually only email.

Report: I spend 6 hours during the past 2 weeks on social events in order to meet people, and I actually talk to strangers for another 7 hours and 40 minutes. I also join an athletics club.

2) Have 14 occasions per 2 weeks of starting a conversation with strangers, or with vaguely familiar people, or being brushed off, told off, or rejected.

Report: I actually have 37 such occasions. I go out one night and I chat with 7 people (speaking to a couple or a group counts as 1). On another night, I visit a party of about 50 people, where the only person I know is the host. I talk with 18 strangers during that party.

Feelings Report

1. I contact a voice coach, in order to train my speech. I notice that since the Reno workshop my voice is deeper and the feeling of speaking is more pleasant. I want to enhance and explore this pleasurable feeling.

2. I notice that, in order to make socializing more pleasurable for myself, it is a good idea to practice storytelling. Instead of the usual chat - "where are you from", etc. - I now try to bring up good stories from my (non-existent) past.

In order to do this well, I write down the stories that are funny, touching or otherwise emoting and I rehearse them. It gives me a lot more confidence and fun in social situations.

During the above mentioned party, I frequently bring up my canned stories.

I leave the party with a hoarse voice, after 5 hours of almost nonstop speaking.

Being hoarse is something I have not experienced in more than a decade.

Receiving Report

My not receiving of people due to my thoughts drifting, is getting noticeably less.

I also notice that first impressions (friendly / unfriendly, familiar / weird) tend to be a good indicator whether this person is willing to receive me.

Thank you for sharing your process.



Garrison Keillor


makes a career of story-telling.



Raconteur: (Noun)

A person with skill in telling anecdotes








Clip: http://img.slate.com/media/1/123125/123075/



Monday, June 22, 2009

Graduation Photo


Dear Ed,

To my tribe members: You are wonderful and inspiring. I am truly honored to work with you. I treasure your devotion, dedication and willingness to be completely open.



Link to full size image

Congratulations to the graduating class of June 18th, 2009! 


Thank you for inspiring me with your willingness to grow and to support my growth process.

Monday, June 22, 2009


Tribe Helps Ed Learn Java

Dear Ed,

I am working on the milk model. Very cool learning tool. I am having trouble getting the java graphic to work but am still able to do the exercises. This is awesome!

Thank you for the feedback. I am utilizing some exceptional Tribe resources to help me learn Java.

Monday, June 22, 2009

Crisis Coming According to Von Mises


Dear Ed,


Here is a good quote:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig Von Mises

Thank you for the quote. 


We are coming to similar conclusions through our work with the  EcoNowMics model.

Monday, June 22, 2009

IVTT Series Report:

Last Minute Hot Seat


Dear Ed,

I make it to the hot seat for the first time, at the last meeting, at the last hour. The chief pairs me with another member, we sit opposite each other and recite, one-at-a-time, "I like to wait until the last minute".

For me, this evolves into: "I like to make people wait for me." "[Waiting till the last minute] makes me feel anxious and alive." "I like to suffer and I invented the "last minute game" to justify my

Chief asks us to describe what the "last minute" means for us. For me, this is (1) leaving my wife, (2) running out of money, (3) dying.

Finally, "when is the last minute?" My response is it could be far in the future or it could be the moment of now.


Earlier in the evening, regarding repetitive negative behaviors, another tribe member remarks, "[when you] pretend you don't like it, it's a sign something is going on." Clearly, I participate in my own systems, I am not simply the victim of cause-and-effect.

Although bittersweet, I see the need for finality in the current IVTT. As the chief describes, it's natural for the forms to solidify if the group meets continuously and indefinitely. I look forward to participating in the broader TT as an alumnus of a very special group.

Thank you for sharing your process.

Monday, June 22, 2009


Wants to Know What to Do About Shyness

Hello, Ed.

I got a really good impression about "The Whipsaw Song."

Thank you very much.

I am an timid person and it effects my job, trading, my life, and even love.

I'm afraid of failure and ridicule.

How do I overcome the shyness?

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




The Positive Intention of Shyness


is risk control



Clip: http://i.ehow.com/images/GlobalPhoto/


Sunday, June 21, 2009


Radial Momentum


I do so much enjoy this link and web page that you have created. I cannot explain why but I cannot stop reading it over and over.


Great work!

By the way Happy Father's Day to you!

The link is a direct confrontation of about 300 years of "physics" of lift.

Sunday, June 21, 2009


A Quote From the Dark Knight

"Schemers trying to control their little worlds. I'm not a schemer. I try to show the schemers how pathetic their attempts to control things really are."

Hi Ed,

I find this quote as I watched the Dark Knight. I feel like sharing this with you.

Trying to fix "schemers" or anyone else for that matter is not part of TTP.


Accepting them and working on your own issues is part of TTP.

Sunday, June 21, 2009


IVTT Series Summary

Dear Ed,

I attend 10 meetings of the Incline Village Trading Tribe (“IVTT”) from February 12 through June 18, 2009. The experience is life-changing.

Ed Seykota, innovator of the Trading Tribe Process or “TTP,” is a sage guide who helps willing Tribe members discover the psychological roots of unproductive behaviors that they themselves identify as problematic. Such behaviors often negatively affect a Tribe member’s trading performance. Yet the real power of TTP is its potential to positively impact a person’s quality of life, especially key personal relationships.


Ed also seeks to train Tribe members to conduct successful TTP-oriented interactions with other willing Tribe members as a means to propagate the TTP technology.

At the beginning I have no preconceived notions about what to expect. I am simply excited to meet Ed and a group of top traders some of whom travel great distances to participate.


I am not disappointed. The Tribe members, all, prove to be exceptional people with big hearts, keen minds, high integrity and most importantly, the courage to experience their feelings. From time to time a new member joins the Tribe or a visitor with TTP experience sits in. New people add spice and help me re-experience the original thrill of participation in this high-functioning group.

Few miss even one meeting. No one drops out. I begin to feel warmth and love and gratitude toward these exceptional people. The April 24, 2009 TTP Workshop in Reno is held near the midpoint of the IVTT sessions. Several IVTT members attend plus about 30 others.


I feel confident about participation due to my experiences with the IVTT. I make several new acquaintances from around the world and enjoy sharing feelings and experiences with them.

What are Tribe meetings like? We begin with drumming. Ed has a great collection of native American and other drums that he shares with us Tribe members. Drumming is fun, energizing and spiritually integrating. It sets the tone for check-ins. After drumming we each in turn “check-in,” talking about our feelings at the moment and any special things on our minds. “Is anyone hot” is usually the next question which leads directly into the working session. I always feel tension at this point: the tension between the desire to participate and the fear of self-discovery (really – scary stuff comes up for us all). Yet it feels good. It makes me examine my own feelings about life, trading, relationships. At a typical meeting we apply TTP to two or three members who have issues and voluntarily take the hot seat. Meetings run into the early morning hours.

There is a mid-meeting break for dinner. Ed sometimes provides the meal and other times one or more Tribe members cook. We dine at a round table that facilitates intimate conversation. In addition to working with TTP, supplementary meeting activities evolve over the series. In the first few meetings we spend time on personal goals (the “bumper sticker process”), then on system dynamics (the “pendulum experiment” and Roadmaps / Stella / Vensim exercises). Later we have an opportunity for Q&A with special guest and NLP expert [Name] and another time with fund manager [Name], and once we critique one Tribe member’s pitch for his new managed futures fund.

I take the hot seat three times during the series. Each time it is intense - intense - intense. Each time it is now - now - now. Time evaporates. Hours on the clock pass in seconds when one is on the hot seat. Feelings pour out. Tribe members work together as a team to help me discover, examine and practice new resources to deal with frustrating long-term behaviors: passive-aggressive tendencies, stagnant trading results, difficulty finishing projects, destructive self-criticism.

Change happens rapidly. My new resources are working. My sense of time from day to day and week to week melds into the now. I stop day trading with no difficulty. I stop using alcohol with no difficulty. I begin to recognize little dramas that I unconsciously set up with my wife to avoid intimacy and effortlessly derail them. I recognize all of these behaviors as medication that interferes with my desire to experience my feelings deeply and to find right livelihood.

Weeks pass. I become highly productive and absorb new knowledge and skills that advance me toward my goals. My relationships improve. I achieve some personal goals. The Tribe holds its last meeting. Everyone is sad yet energized and empowered. It feels good and I feel gratitude to Ed and my Tribe. Thank you all.

Thank you for your report.

Sunday, June 21, 2009


Bernoulli Abuse


Dear Ed,


You say, on your website:



"I invite you to join with me in the crusade to Stop Bernoulli Abuse and to put the pressure where it belongs - on the abusers."

Thank you for sharing your research. I support you in your quest for truth. I respectfully decline your invitation to fight in holy wars.

I notice that the word "abuse" appears 10 times on your overview page alone. I wonder about your feelings around abuse, scientific authority and the voice of him that crieth in the wilderness.

In this sense, abuse means to change the inherent purpose or function of something.


I recall readers of my Radial Momentum Theory thinking that I am questioning Bernoulli's Energy Balance Equation.


I am actually questioning some specific applications of it to explain lift.


To help communicate this distinction I use the phrase, "Stop Bernoulli Abuse."



Sunday, June 21, 2009


Trading Software

Dear Ed,

Thank you for [the demo of your] TA software in such detail. It is a dream come true!

I am very inspired. It's organization & detail is beautiful.

Happy Father's Day


Sunday, June 21, 2009


Attracting Authority Figures

I meet another authority figure, and another

boundary, on the day of our last IVTT meeting.

I arrive early and go, with three other tribe members, to the park adjacent to Ed's house to fly a radio control airplane. A fence separates the park from Ed's property. A sign on the fence warns
against entering the park here.

We climb around the fence and look for a place to fly our model. Suddenly, I notice a police officer walking towards us. I think, "not again!" I am sure he is coming to castigate us for entering the park.


I notice thinking, "Something in how I look at him
attracts authority drama. Maybe if I close my eyes long enough, he'll go away." I fiddle with the airplane. When I raise my eyes, I notice the officer talking to another tribe member about water temperature in the lake. I notice that the officer shows interest in the model. I ask him if he wants to fly it. He says he has some experience with R/C
airplanes and expresses fascination at the small size of our model. I enjoy showing him how to fly it. I reflect on the irony of using a radio control model to avoid a control drama.

I notice that one of the other tribe members is not around. At check in, I report this incident and my surprise at a different outcome, comparing with my last encounter with IV law enforcement.


The "missing" tribe member reports that the same officer tells him that he must leave the park as he is violating an IV regulation.

Thank you for sharing your process.




Police Generally Behave




The Way You Expect Them to Behave.











Sunday, June 21, 2009


IVTT Series Retrospective

The Incline Village Trading Tribe completes a 10-meeting series on 6.18.2009. I notice that I feel sad about the series ending. I notice that I am willing to be sad, and at the same time willing to let go of what's complete. This is a change for me, one of many in the tribe.

In this series, I work on goal orientation and process orientation; control and intimacy in relationships; responsibility and blame; and
learning to accept people the way they are.

In our first meeting in February, I report a recurring pattern where I give up on projects when I can see the possibility of completing them. I mention a recent example, a radio control transmitter I am (not) building. Over the course of the series, I work on it on and off. I find that my design's most important feature is its ability to
evolve with my evolving interests in R/C flying.


In our last meeting, I fly a palm-size airplane model using this transmitter. The project is far from complete -- and I no longer have a goal to "complete" it. I now have a process by which I can evolve my project as I evolve in the ever-evolving moment of now.


Remote Controller


I notice that the tribe is diverse. We have people with 6 different first languages from 4 continents. My conviction coming into the tribe is that my background is unique in its harshness, and my responses to stress are a result of my special experience. I notice that other tribesmen have identical responses to stress, even though we grow up decades and thousands of miles apart.

I notice that many tribe members have parents who manipulate them. I find it easy to role-play these manipulative parents. I learn to notice manipulation in others and respond to the person, not the manipulation. I notice that I feel dramatically closer with my father. I notice that I do many of the same manipulations that I notice in my parents. I notice that now I ask, "how can I change my behavior to avoid manipulation?" instead of describing how others can stop manipulating me.

We process many rocks in the tribe. One of the ones I find is a slave rock that informs many of my relationships. I want to throw it away, bury it, drown it in the lake, or at least process it.


We never get a "round tuit" in the tribe. I carry the rock with me in my car, thinking perhaps I can process it at an upcoming meeting. I think less
and less of it. As the series completes, I wonder what can I do with it. I notice that I no longer feel any stone-throwing desires. I put the slave rock in my backyard where it came from, one of hundreds of rocks that make up my landscape. I learn to accept this part of me for what it is: not to hide it, not to flaunt it, but to let it be the part of my experience that it is.



Slave Rock


Thank you for sharing your process.

Sunday, June 21, 2009


How To respond to Close Relatives


What would you say if one of your close relatives is saying to you:

"I took that decision against my will, you all forced me to take it: it was not my intention. But in fact I did not want to make it at all, I took it unwillingly!"

I might move to a less close position.



Sunday, June 21, 2009


New Tribe - San Diego

Hi Ed,

Please find our template attached.



San Diego



back to the future