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Ed Seykota's FAQ
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August 25, 2021


Dear Ed,

how do you personally TTP, when/where there is no TTP?

Thank you for raising this issue.

The Trading Tribe Process (TTP) requires a Tribe.  

You can start the process by joining or creating a Tribe.

August 22, 2021

Life Saver

Dear Ed,

I hope everything is well with you.

This is a true story and something you did saved my life, I hope you get to read it.

“Show me a hero and I’ll write you a tragedy.” - F. Scott Fitzgerald (1945)

It happened in February 2018, at that moment I was at 9+ years into a successful career in precious metals trading and investment management until Saturday the 3rd, when someone f--- it up…

No, not me, I don't even know the guy personally, except for one appearance in court. It was a customs officer the one who f--- it up, he was not even there that day, he sent another guy to do his job, who himself didn't knew how to do the job either, and they just ruined my life.

It was just one of those black swan events of inexplicable timing and combinatión of ignorance, authority, power and greed. And because of that, I ended in jail that day and it took me 3 years to set the record straight.

Now, I am not saying that I am saint, not even a good person, but I do give and demand excellence when it comes to work. And I remember being taken into custody because a customs officer didn't know how to do his job, and thinking to myself "Oh my god! I have so many things to do on Monday, and I am not allowed to use my phone!" (it's only funny now… it was not funny then).

Seriously, I had just been promoted by a HNWI to manage the entire investment operations of his private fund and now, not only I was missing to report to work on day 1, I was not being able to answer the phone either. Consequences to that are obvious.

I was heard by a constitutional guarantee judge specialized in economic crimes on Monday the 5th. This judge is not in charge of judging the case, he is only in charge of verifying that you are not sent to jail unnecessarily and to receive the evidence that will be later delivered to the court of 3 other judges that will then judge the case. The hearing lasted 1 hour because there were 3 of us, and after examining the documents, we were all released and sent home.

After almost a year, I was offered a plea deal by the prosecutor who told me that he presented the indictment because he had no reason to doubt the word of a public servant, but given my track record and reputación he offered me to face no consequences if I accepted the responsibility and consented to close the case.

Of course I refused, what else could I do? I came all the way from my humble beginnings in the middle of nowhere. My name and my skills have a value to me, a higher value than losing all my savings to afford the legal process and survive while no one will give me a job because of the newspaper publications.

Finally I got to trial in December 2020, and of course, I won…

Not only was my innocence, and that of the other guys, proven, but it was also proven that such alleged accusations were false.

What was the accusation about?

I was advising a client in the delivery of future contracts in a precious metals export process. I was acting as a registered international trade lawyer and, at that time, after a decade of using the same system, the Customs Authority had changed the clearance process and documents formats to paperless, and this operation in particular was actually the first one they had approved since the new system started.

The custom officer who was verifying onboarding of declared goods didn't recognized the format of the new authorizations and accused me (together with the client and the broker) of trying to use fake permits to export gold, and he did not even verified the document with the clearance system but instead requested immediate intervention of the police and presented a complaint to the prosecutor who just as immediately decided to indict me and the other guys.

During the trial, when asked by the court, the Customs Authority itself issued a report confirming that such a permit was issued by their platform and that this was the first user trial, dismissing the accusation of this one customs officer who caused the whole trial.

There is nothing to compensate for the hell I have gone through for 3 years, and yet, the publications won't go away and Google says I have to be a EU resident to own the right to be forgotten.

After 3 years of burning my reserves and having lost almost all clients because no one could work with me until I was acquitted from any responsibility, my career as money manager was probably over, so the first thing I did when the nightmare finished was to take the little money I had left, and get myself back to the markets.

I really have no time to lose in sorrow, I just wanted to tell you this story because while I was facing all this adversity, I remember being alone with myself and doing the Trading Tribe Process exercises out loud, and that allowed me to observe everything and not to judge but to analyze the situation, and that again helped me not to give in to stress and depression, but to stay focus and determined. That really saved my life, I walked out from adversity as a better version of myself.

Nowadays I am trading precious metals commodities in the London market as well as Equities and Options in the US markets

I have a special love for the markets because it is the only area of life where you get to compete that often, to win that often and to lose that often. The market does not care who you are, it only cares about how good you are, and how fast you learn. It is the great equalizer. There I am equal to the giants.

Thank you for everything.
Thankk you for sharing your process.
August 13, 2021

Feelings About Stops

Hi Ed

Hope you are doing well.

It has been a while that I wrote to FAQ (almost 2 years).  I do enjoy reading the FAQ's though as I always learn a lot. 

Last month I saw one of the traders mention about being stopped out. 

I thought I would share my experience as I had gone through a similar process in my trading. 

When I started trading, I always used to worry about getting stopped out. 

Interestingly, I would end up buying securities that would hit my stop and move up. 

In 2014 I got to do the Breathwork with you and I took TRUST as the thing I needed to work on.  I got to visit a childhood incident that had caused me to lose faith/trust and I couldn't trust anyone. 

After letting go of my worry with stops, my performance improved a lot and I didn't worry whether my stops would get hit or not.  Just went with the system. 

Again in 2018, I went through a similar cycle of getting frustrated with stops.  It was the markets but I stopped trading for a while and missed some of the best trades during the 2019 move up. 

Those trades would have not only recovered the losses but also improved my equity considerably.  After meeting you for lunch in 2019, I started trading again and this time have gone back to following the system.  If a stop hits, I don't worry about it just move on with the next trade.

What I have realized from the whole experience is that there will be times when the stop will hit. 

My experience over the past 5+ years has been that if I worry about stops, I mess up my trading.  I am focused on the stop that happened so much that I miss the future trades but if I accept it and look at the next trade, I am better of in the long run.

Thank you for everything you do for traders like us.

Kind Regards
Thank you for sharing your process.
Aug 11, 2021

Several New Friends

Hi Ed,

On Feb. 11, 2019 I in my report to FAQ about a Tribe meeting I write:

"I notice immediate and positive changes surrounding the Tribe meeting. I feel surprise with my new, strong desire to connect. I make several new friends."

That evening after the Tribe meeting, I recall introducing myself to someone I fear speaking to. I share my feeling of fear and shyness with this person, and recall the strong connection we make when that person shares that they too are shy, and get uncomfortable speaking with people sometimes.

It turns out this person is now in charge of hiring at a very popular club, and I feel happy to share the news that he hired my band to play next month!

Happy Birthday! Thank you for the gift.
Thank you for sharing your process.
Aug 10, 2021

No Exact System

Hi Ed.

To the end of this year I plan to use VNS ranking (20 days based, I choose the distance from trends article) for stocks making all day highs from different countries (for diversification).

I like trade commodities with no exact system rules yet, I intend sort them by VNS also and unite with stocks. 

I have 1 question. The Process of opening new deals  are dinamic like instruments selection till you have margin?

I don’t know how many deals I can open in a row.

I am very greed man increasing risk up.

I think You have really great patience helping us traders making similar questions.

Thank you very much.
Thank you for raising this issue.

The combination of "no exact system" and "increasing risk" generally invites drama.

You might consider taking your feelings about <discipline> to Tribe as an entry point.

Aug 6, 2021

Journey to 185 Pounds

Dear Ed,

Thank you for sharing your journey to 185 lbs. and your observations. My congratulations to you!

I can truly relate to "I feel a desire to eat when I get near the goal". I observe a similar behavior with me, not only related to eating habits but in general when pursuing "bigger" goals. I wonder if this is associated with fear of, well, change? Success? Uncertainty? If you have any thoughts that you'd like to share that would be great.

I wonder what made you stick to your vegan diet after you approached 185 lbs. I'd suspect that weight loss was no longer your main goal but a welcome side effect?

Sincere greetings and thank you.

Thank you for congratulating me.

I recall sticking to an Atkins / Peleo system for years.  Result: lots of struggle and perennially oscillating weight.

Starting April 1, 2021 I abandon that system and commit to a plant-base food plan. Result: relatively easy to follow; down from 205 pounds to around 180 in about 4 months.

Interesting side effects (typical): cholesterol down; testosterone up; everything currently in healthy range.

Aug 6, 2021

"W" and "ST" Buttons

Dear Ed,

I notice that there are 2 new buttons called "W" and "ST" in TT Chartbook.

When these 2 button toggles on, blue line and green circle show on the chart.

It seems that they are tools for technical analysis.

Could you please provide some clarification on these 2 new added features?

Thank you very much!
Thank you for noticing the new features.

I have them in development. No operations manual at present.
Aug 5, 2021

Risk Management

Dear  Ed,

Today I do my daily chart exercise and I notice that one strong stock posted on TT_charts recently drops -46.5% on 8/4/2021.

A vivid reminder of importance of risk management.

My Aha moment ...

Down 46.5%

in one day.

Thank you for sharing your process
Aug 1, 2021


Hi Ed,

Hearty congratulations on reaching your desired goal of 185 pounds and living lighter. :)

Best wishes,
Thank you for acknowledging me and the work.
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