The Trading Tribe
Ed Seykota's FAQ
Home | Send Mail to FAQ | Resources | Ground Rules | FAQ Index


Govopoly in the News
TT_Chartbook



Contributors Say Ed Says
Dec 9, 2014

Workshop Follow Up

Hello Ed ,

I hope you are well in Puerto Rico.

My goals were to build and trade my system. I recently bought software with which I am learning to code systems. Each time I find what I am learning a little difficult I think of you Ed.

I think of how everyone gets what they want, including giving up or shutting down when the learning gets hard. I also think of you learning to build a piece of farm equipment and persisting until your project is successful. I like the feeling that you are in my thoughts spurring me on to work hard to achieve my trading goals.

My next step was to purchase a code for a longer term trading system. I am now backtesting many different variations of this code on different groups of markets and studying the results. It has been quite an invigorating few weeks.

I am very thankful to have had the opportunity to have learned from you at the Workshop. Hi to all the others who attended the last Workshop. I loved our time together and would like encourage you all in reaching your goals , and spreading the TTP process with others.

One day the young man observes , "the stone I hold is not genuine Jade." -- from The Trader's Window by Ed Seykota
Thank you for sharing your process.
Dec 9, 2014

Puerto Rico

Ed,

Feel free to post/answer the questions below on your blog with my name and email address obscured ... to the extent that it is even relevant for most TT members:

How safe is it there? What is the safest area/town in PR, especially for USA expats?

Where do most traders and market-related (Acts 20 and 22) people congregate in PR? Do you know any there?

Best wishes,

Gracias para enviarme sus preguntas.

Puerto Rico esta, de mayor parte, tan seguro como cualquier cuidad en los estados unidos. Tambien, como en cualquier cuidad, hay unos problemas que se asocian con la trafica de droga. Cuando usted se va en los calles mayores y usted se va de compras en los plazas mayores, usted no se vea mucho problema.

Las personas que usan los provisiones del acto 20/22 viven por todas partes de Puerto Rico. No hay una area propio por ellas.

Una cosa mas, que hay aqui una cultura latina y una lengua nativa. Si piensas de moverse aqui, usted podria considerar estudiar un poco de espanol.



Dec 9, 2014

Cold Calling

Hi, Ed!

Thank you very much for a very interesting workshop!

I am working now with my goal:

Manage a fund with 50 mill [Currency] under management in my own office in [Country].

I am calling new leads every day and have a goal to reach 5 new people every day.

Cold calling is a difficult task and sometimes I am feeling frustrated. I have now 23 prospects and had 2 meetings since I've started to call 3th of November. Do you remember back in the old days how many contacts you had to do before they where warm enough to close? Maybe I have to embrace the feeling of patience:) and just keep calling and do meetings.

My trading is wonderful and I love my system. Thanks to your teachings:)

Enjoy Puerto Rico, Ed and take care!

Kind regards

Thank you for sharing your process.

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



Intimacy-Centric Selling

Establish rapport
and learn how you fit.

http://www.spaulforrest.com/2011/07/is-there-anything-we-are-still-free-to.html

Dec 8, 2014

TTP for Couples (see previous)

Ed,

This post really grabs me.

Since the workshop the relationship my wife [Name] and I have created has flourished more so than ever before. It was already a great relationship and now the little aggravations that we once just dealt with are things that we can feel, accept and learn from.

Our idiosyncrasies and attendant dramas have given way to a lot of laughter and much deeper understanding of the "unimportant" processes that inform us of who we are.

The tools I learned how to use at the workshop and have since shared with [name] have enabled us to really blaze through issues, support each other and get straight to the feelings whenever our own "rocks" pop up to magnify challenging circumstances (young kids, running businesses together, life in a big city, an angry ex-wife and all theother overlapping narratives we encounter together).

I can imagine the tremendous thrill and power in working with TTP in a couples context.

Physical and emotional intimacy has been steadily excellent for us - being honest with one another and really receiving each other is how it happens. I hold that physical intimacy and intimate sexuality are only really possible with emotional intimacy as the foundation.

TTP and intimacy centric relating has also been a great contributor to our parenting and relationships with our children.

If you plan to host a workshop, I will make it a priority to attend with [Name]. With enough advance notice, we should be able to turn it into a family trip (complete with the rest of our familial tribe).

Thank you.​

Best,

Thank you for sharing your process and observations.


Intimacy-Centric Relating

Deep commitment
and
great physics.

http://www.fanpop.com/clubs/love/images/
31831866/title/cute-couples-33-photo
Dec 8, 2014

Govopoly - How it Works

Hi Ed!

I have read your book "Govopoly in the 39th day". I think it is very interesting! You have really convinced me that trend following is the right way to trade the markets. I have been a firm believer for a long time but more in theory than in practice. I try to align these two now. Your view of how bubbles are created made sense to me, and as we live in times when governments keeps adding liquidity I realize bubbles will be highly likely.

I have a practical question about what is really happening when FED adds liquidity by issuing bonds.

A friend asked me how it works when liquidity is added? I could not answer. If I make some reasoning here, you might be able to point out my pitfalls. Lets say Fed sells new bonds to private investors and other countries. But the money they pay with is already in the system - that is not new money. So actually it is not added new money in the system, only higher debt for the country and more assets for the investor. Can you please explain how it works practically? Is it really added money or what am I missing?

I have another question. If government would not interfere and for example make it difficult to for big companies to grow into monopoly companies. What would happen if they did not interfere? Maybe the company would buy every single company that are competing in the same area. Is that good or bad? Will it lead to even faster development or slow the process. Of course it is a big different if a profitable company decides what to produce or not compared to if the government do it - but in what ways. If the company doesn't make the right decisions I guess the market will adjust itself pretty fast. The monopolist will only stay there as long as they do the right things - but, is there a risk they will get the same roll as the government. And the government can be changed by election - a company can not. I really would like you to elaborate on your thoughts in this area.

Best regards,

Thank you for raising these issues.

Since the U.S. Government spends more money than it raises in taxes, it borrows money for operations. To borrow, the U.S. Government issues bonds to various entities such as individuals, foreign governments and the Fed.

In exchange for these bonds, these entities loan funds to the U.S. Government. The funds the Fed loans to the U.S. Government simply appear by fiat. The Fed, a private organization, has a license to create money and to loan it to the U.S. Government, and then to collect interest on the funds it loans.

Congress enacts the U.S. Income Tax around the same time as it authorizes the Fed (circa 1913) in order to compel U.S. citizens to pay, among other things, the interest on loans from the Fed.

At this point, however, U.S. citizens can hardly pay the interest on the loans, let alone the principal - even at historically low interest rates. At higher interest rates, the wheels come off the wagon. At this point, the Fed has to keep buying more bonds to hold down interest rates.


Keeping Interest Rates Low
by selling bonds.

Putting out a fire with gasoline.

http://wattahack.wordpress.com/2013/01/20/a-bad-person-always-adds-fuel-to-the-fire/



- - - - -

Without government interference, inefficient companies cannot stay in business long, since new, young, entrepreneurial firms come along and compete. Free competition keeps everyone on their toes, keeping prices low and quality high.

Government regulations protect large companies from competition and enable inefficient monopolies to form and to stay in business. I call an inefficient monopoly that survives by government sanction a Govopoly. I call the system of Govopolies, regulators and lenders the Govopoly System.


Competition Favors Consumers

Regulation favors Govopolies.

http://justdan93.wordpress.com/tag/entry-and-exit-in-monopolistic-competition/


See resources, above, for more information about my book.

Dec 8, 2014

Permission

Dear Ed,

I would like to get your permission to start a Trading Tribe in Melaka, Malaysia.

I buy your book in 2010. I follow FAQ since 2008. I read FAQ 2003 - 2007. I have ideas on how to run a Trading Tribe.

I would like to get your permission to advertise Melaka Trading Tribe Information at my blogspot: 投资与心理学 - Trading and Psychology

My intention is to reach out to more people.

I am committed to send report of exceptionally instructive Tribe experience to FAQ and encourage my Tribe members to do so as well.
Thanks and regards.

Thank you for sharing your process and for starting a Tribe in Malaysia.

You may start a Tribe wherever you like and run it however you like.

You do not have to apply for a license or pay any fees or royalties.

Some people like to send reports of their Tribe activities to this site to encourage and help others.

Dec 8, 2014

Walking Out

Hi Ed,

I would like to share my experience

As [Name] is in the middle of opening up to me about something deeply personal / personal breakthough. I sit there for another 20 seconds trying to hear her out but I get uncomfortable and stop her and say to her lets get out of this place. We get up and leave.

The fear tells me I need to leave at that moment. At the same time I feel a missed opportunity in connecting with her.

I look forward to what you might say.

Thanks for listening,

Thank you for sharing your process.

You might consider taking your feelings about <walking out on people> to Tribe.



People Who Walk Out On Others

wind up attracting people
who indulge them.

http://9marks.org/article/what-to-say-to-church-members-leaving-for-poor-reasons/

Dec 7, 2014

Day-Trade Back Testing

Hi Ed,

I am making progress on the work for the backtest project. It's taking a little longer than I had anticipated due to a few issues I had in being able to correctly get what was needed into excel. I finally got the data I needed in the time frame I wanted (1600 tick including globex).

I tracked 25 ABCD trade setups from an intraday 1600 tick chart, November 17 - December 1, in an excel sheet applying the trade rules I use and made a screenshot of each pattern with trade notes on it from my charts. The times of the A,B,C and D points are included as well as the entry and exit times of a trade. (attached). You'll find a chart link to the far right for each setup.

I started a "Chart Notes" word document to include information such as;

Pattern rules; what defines the ABCD pattern for a tradeable setup (minimum ranges)
Entry rules
Stop loss rules
Exit rules
Price movement rules

It includes information such as why an 'A' point might have been chosen, or where I thought a computer might pick up an ABCD that would not be a correct pattern. I thought it might be helpful. I am still finishing it so will send with the spreadsheet / chart work, which is where I am currently.

As I mentioned I have the data and started entering the price and time of A,B,C and D. I will create charts from four to five of the ABCD patterns, but I am not sure how to create a chart within excel per your suggestion. I am checking to find out how to do that, once I have that, then I should be ready to send you the rest of the information.

The second attachement; "create price chart", is where I am currently, showing it to you as I marked in the A to D points of a pattern (trade #14) and looking for how to now create the chartSmiley emoticon.

I hope you had a great weekend.
Thank you for sharing your process.

Dec 7, 2014

Healthy Eating

Ed,

This video is worth watching:
http://beautifulvegans.com/forks.html

Thanks,

Thank you for sharing the link.
Dec 7, 2014

TTP in Couples Therapy - Sexual Intimacy

Dear Ed,

I want to share some of my experiences of attempting to utilize TTP principles and technology in working with couples who seek guidance for their relationship.

I feel excited to see that the concept of intimacy-centric vs. control-centric relating fits perfectly with my understanding of the blocks that many couples experience.

I ask them to practice the "sending and receiving" exercises that you describe in your book and your workshop. One of the biggest obstacles in long-standing relationships is the way each person stops listening and starts preparing their "rebuttal" before the other has even finished a sentence.

Seeing the shared "problem" through the eyes of their partner feels extremely difficult to them and they seem to need pretty strong coaching to prevent falling back into control-centric responding during the exercises. Non-verbal signals, like eye-rolling, sighing and head-shaking, seem completely ingrained as standard responses to each other's words.

I recently decide to go a step further and ask a willing couple to create a role-play: the wife reports that she cannot be sexually intimate with her husband because traumatic memories of her previous husband's abusive dominance cause her to "freeze" for survival.

Her current husband plays the former husband, standing over her while she sits in her chair and saying loudly to her, "I own you!" (thanks to your workshop for giving me that line).

She shakes her head and says, "No, you don't", but feels very reluctant to stand up and look him in the eyes. I tell her that it is okay if she doesn't want to, but she then says she does want to and stands up to tell him how she feels. Her struggle is palpable.

She finally tells him, with strong emotion, to leave her alone, that she is done with him, and sends him out of the room.

As she stands in the room, shaken and trembling, I tell her that her current husband is waiting outside the room if she wants to see him. I am prepared to go and get him if she wants me to, but she says "Yes!" and rushes out the door to find him.

She asks him to come to her and they embrace for a long time, both crying. Their embrace appears close and heartfelt; their bodies touch in a way they have not done for a long time.

In the processing afterward, she said she has never been able to say those words to her ex-husband in the past, and that she has visualized such an encounter in her mind "a million times" but always doubted that she would actually go through with it.

Her husband said he never truly understood how much difficulty she was having with getting the past out of her head and out of her emotions, so he had always assumed she just didn't really want to try to be close to him.

We all feel exhausted and happy at the end of the session.

I feel that, for most people, the marital relationship lies at the core of our functioning in the larger world: our parenting, our ability to work, our connection to "right livelihood". Our primary relationship can represent a safe place where we can feel truly accepted and safe to express our "real" self.

And yet so often that relationship ends up validating a basic self-doubt and disconnection from others. We re-live our Rocks instead of finding ways to release the patterns.

I wonder if you might consider the ways that TTP can be used to help couples. I feel there is enormous potential there.

Thanks for TTP.

Thank you for sharing your process.

I can imagine a Workshop for couples, in which we work with forms that present in their relationships.

I envision working in a general group to discover and resolve issues and then also breaking into men's and women's sub-groups.

In this Workshop, the attendees and the Tribe Leaders would all appear as couples.

One item of possible interest for couples: how to keep things exciting and secure at the same time.

You might also consider watching this video.



Wow Meow !

I get to eat the same cat food
day after day.

http://catsandicecreams.blogspot.com/
2011_01_01_archive.html

Dec 5, 2014

Wants to Make Life Bearable

Dear Ed,

I would like to find my right livelihood. I think this will make life bearable in terms of my ups and downs. Thank you for listening.

Please let me know if you would like to stop receiving emails from me. I will respect your wishes. Thanks again. I would like to let you know that I would like to see you again when I can receive your help.

I dont know what else to say.

Thank you for sharing your process.

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



Path to Right Livelihood

Ask people what they want
and then help them get it.

http://en.wikipedia.org/wiki/File:Darwins_Thinking_Path.JPG

Dec 5, 2014

Getting What You Want

Ed,

FYI:

Jack Schwager posts this article on Linkedin: https://www.linkedin.com/pulse/article/20141205072912-3158914-which-market-wizard-is-the-best-role-model

one person replies:

Ed Seykota, His bit about how every trader gets what he wants out of the markets, and his 5 rules of trading are really challenging. But I think there's some nuggets of truth if you really chew on what he says.

I replied to that person my belief about what you said:

Hi [Name], I read, "Everyone gets what they want" in Jack's first book twenty years ago, a few years after he wrote it. That was a statement that stuck with me since. Everyone gets that they want, because we decide what we get. It's a statement about personal responsibly and making decisions. I get what I want, because I decide what I get. I find that people mostly get what they want, as they do things that lead to what they get.

I could have added:

I have tried to help (motivate) others who say they want more to get more and I usually find they are already getting exactly what they want, though they say they aren't....

Thank you for sharing your process.
Dec 5, 2014

Wants an Opportunity

Dear Ed,

How are you doing? I'm an ... alumnus of [School]. After graduating ... ,I went to[Other School] for MA in Mathematical Finance in September 2005. Henceforth I worked for [Firm] for a couple of years and currently run money for private ... clients. I believe I could bring serious commercial value to the table from day one should I be given the opportunity. Please see attached herewith my resume for your perusal. I look forward to hear from you soon. Thanks a bundle.

Regards,
Thank you for sending me your resume.

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



While You Sit Around
waiting for an opportunity

you might as well create one.

https://www.pinterest.com/pin/85498092899295616/

Dec 4, 2014

We Make a Lot of Money and We Sleep at Night

Hi Ed,

I'm reading FAQ and accidentally end up reading entries from 2013.

Apparently it is my intension to come across several posts that resonate with a feeling of transition in my process. I am reminded that previously I do not want to feel afraid of failing. Now, I notice and accept how I feel about failure and consider what conditions might be contributing to the feelings as they arise. I share my feelings of fear with my wife and she embraces me with complete support and acceptance.

I feel calm and have willingness to size my trades small enough to get to the "sleeping" point. The willingness to feel feelings of don't want to fail have given me an opportunity to feel something new.

On another note:

I am out of town and am unable to host our weekly meeting this week. Another tribe member offers to accommodate and host a meeting. I look forward to hearing about the meeting when I get home and am very glad that our tribe continues to function while I am away. I feel a sense of joy.

Thank you for FAQ and your support.

Thank you for sharing your process.
Dec 4, 2014

No Recourse

Ed,

The recent news of no legal recourse for police officers that choose to murder children and young men upsets me.

I feel anger, frustration, and sadness. I feel a part of me unwilling to feel my feelings on this issue. I wonder if groups of people can collectively entrain drama.

I wonder if I can implement more intimacy with all people regardless of race, religion, and now profession.

I worry about the safety of my family (my wife is African American and Muslim) and wonder what I can do to support and them as they navigate a world sometimes filled with ignorance and hatred.

I feel willing to walk down the intimacy centric path I also feel unwilling to go along to get along.

I keep in mind the various uses of the heart rock....building rapport, sharing and receiving feelings, and using the sharp pointy end to protect myself.

Thank you for sharing your process.

As the Govopoly System continues to grow, we might expect to see more examples of purposefully fomenting class warfare to give citizens an outlet for their sadness and anger about losing their economic chances.

The Govopoly System uses control-centric methods and does not particularly wish to engage programs to move the society toward intimacy-centric relating.

You can, however, implement intimacy-centric relating in your own life and within your own circle of friends and associates.

You might consider taking your feelings about <no recourse> to Tribe.


Imagine all the people
living life in peace.

You may say I'm a dreamer,
but I'm not the only one.

I hope someday you'll join us,
and the world will be as one.

-- John Lennon

http://justin-stroh.blogspot.com/2014/06/john-lennons-false-vision-of-peace.html

Dec 03, 2014

Wants a Back Test

Mr. Ed Seykota:

My name is [Name] and have started trading year 2011.

I have been through the gauntlet.

I started trading with no back tested systems.I started with no plan, then graduated to day trading with a discretionary plan in which i lost money and realized I didn't trust what I was doing. I stopped placing trades and have been working on back testing systems via trend following systems.I quote you " I marry my system".

My goal is to trade within 6 months. I have read your books and white paper on risk, listened to your students and I read FAQ. You have been my mentor in which I am very thankful. Would you review and back test my system.

Thank You,

Thank you for sharing your process.

If you want specific help, outside the scope of FAQ, such as back testing and system review, see the terms for consulting at the bottom of the Ground Rules page, above.

Dec 03, 2014

Issues

Dear Chief,

These are my issues that i work in the workshop.
The situation i have:
- My fund has few clients.
- The fund i manage is in the third quartil in returns compare with simular funds in [Country]
- My partner says that i'm insecure and i use the control centric method.

The specific situation i desire:
- My fund has 100 clients.
- the fund i manage is in the first quartil in return compare with simular funds in [Country].
- i want to be confident ans use intimacy model.

Thank you.

Thank you for sharing your issue.
Dec 03, 2014

Complaints

Ed,

Recently a friend comes to me with a situation at work where they feel they receive unfair treatment at work.

My friend solicits my advice but I cannot provide a straight answer. I raise my voice angrily and feel annoyed. For some reason whenever this particular friend asks me for advice or help I feel uncomfortable.

I feel I have judgement surrounding this interaction. My friend tells me how my inability and unwillingness to give help or provide advice hurts, she feels alone.

I feel the heat rise from my upper chest to my neck and then my ears. I feel on the defense but I do my best to receive. Eventually I thank my friend for raising the issue and that I now notice my own judgement.

I do not like to feel alone or rejected so I rarely ask for help.

Growing up I hear a lot of No's. I either receive no advice or bulldozer advice. I choose to learn on my own rather than feel bad. When approached for help or advice these feelings ramp up. I want to work on these so when I have children I can help them and teach them willingly.

Best

Thank you for raising this issue.

I gather your friend asks for advice and then complains about what she gets.

You might consider taking your feelings about <having clear agreements> to Tribe.



People Like to Complain

about other complainers.

http://johngouldener.com/?p=3253


Dec 02, 2014

Intention of Wine

Ed,

Thank you for taking my call today. I enjoyed hearing your voice. I wish I could hear your banjo and I hope you enjoyed the party. I'm sure you did.

As I tried to explain. I sent you a gift, a bottle of Australian wine ... Unfortunately this gift sent back to me in return post. I felt sad and disappointed. I wanted to find out if the gift was unwanted, I thought perhaps you did not drink wine or alternatively if I sent it to the wrong address.

I sent it to the same address as per your essentials card ...

I would like to know whether you would be ok to accept a bottle of wine as a gift from me and also I would like to know your correct address so I can at least send you a post card every now and then.

Thank you Ed.

Take care and warmest regards

Thank you for reaching out to me and for the honor of almost receiving a bottle of wine.

You have the address right - and your postcards do reach me.

I wonder if you can send me a photo of the package so I can ask the people who collect my mail about their theory for not accepting it.

At this point, I suggest you go ahead and enjoy the wine with your family and friends as I already have the pleasure of hearing from you and I figure our intention for the wine (by observing the result) includes its return to and consumption by you.

Dec 01, 2014

Beethoven's 9th

Ed,

You might like this arrangement.

Thank you for sending me the link.
Dec 01, 2014

Trading System

Dear Ed,

I hope you are keeping well. I have been trading on a small account based on a volatility breakout based system. I am really challanged with volatility or returns. The system backtest results have been robust and follow your methodology for backtesting and are conclusively robust. The system works well on 40 markets using same parameters.

I have 2 questions:
1. How can I reduce performance volatility? Is historical volatility of market returns the basis for stabilisation of returns?
2. how should dynamic portfolio allocation occur, so that the best candidate in a given basket group may be selected for trading, e.g closely related baskets such as interest rates, energies etc?

If you could point me towards resources that may help, it would be really great.

regards



Thank you for raising these issues.

You can reduce your portfolio volatility by decreasing your portfolio heat - taking on less risk per trade.

You can also back test various methods for dynamic portfolio selection, such as the one you mention, that notices relative strength within a group.

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


If You Can't Handle the Downs

stop trying so hard
to get the ups.

http://library.wallstreetsurvivor.com/2013/11/11/how-to-cope-with-market-volatility/


To Top of Page