|Jun 10, 2016
Resources and Discount
I came across you and your work while reading books on trading. As a
brief background, I have a couple of years experience trading commodity
futures and 10 years writing computer programs in a variety of domains.
I am an Indian and have studied and worked in the US for some years
early in my career, but now I am based out of India where I stay with
Getting to the point, initially I was trading mostly based on my
reading of market conditions and "funny-mentals/surprise-a-mentals" as
you call them :-), but after experiencing a lot of real world trading
and doing research, I have started to come to the conclusion that
mechanical / automated market volatility harvesting systems (such as
trend following) might be the best way.
So, as per your astute observation "Those who want to win and lack
skill can get someone with the skill to help them", I want your help on
the following two points:
1. Automated trading based on rules seems like a vast field. I have
read about the systems (S1 and S2) followed by the turtle traders and I
am planning to test out those, but if you can point me to some
resources (or strategies to test out) that will help me navigate the
waters so to speak (get started and then also proceed to advanced
2. Reading about you and your work and going through the snippets of
your book "Trading Tribe", I think its ideal for developing a healthy
mindset for trading (especially somebody starting out) and for life and
also the areas you address in Govopoly are something that I have been
researching for a while. But your books are not available in India and
are quite expensive for someone in India :-), so I was wondering if you
have a soft copy download that I can buy at a more affordable price.
|Thank you for raising these issues.
1. You can find many very specific ideas for trading systems on-line.
2. People all over the world (including India) may order my books through this site.
You might consider postponing trading until the price of my books no longer worries you.
You can read through FAQ and start your own Tribe, all for free.
We have our virtual Tribe meeting last night. This meeting is the
monthly "Project" meeting where we share our projects exchange
feedback. Even without TTP/Rocks processes scheduled, we
still seem to be working with feelings, possibly revealing entry points
for Rocks Process.
The format for the "Project" meetings is loosely modeled on the Lab
meetings from the 2015 San Juan Tribe and is as follows:
At the meeting we start with a two part check in as usual for our
Repeated/iterative check in replaces drumming and helps us connect and
get into the meeting and rapport with each other.
- Each member checks in on how/what they are feeling now
- Each member checks in on feelings, issues and events since the last
After the check in process we offer each other observations and
feedback taking turns in the same order that we use for check in.
We tend to notice and point out connections, related feelings,
overlapping and related issues. The feeling of connection and depth
builds throughout this process.
Once the check in and feelings exchange feels complete and
settled PM check if anyone wants to do work on an issue or if we would
prefer to move on to presentations. We come to agreement and move to
the next process.
There are no pressing issues and we agree to move on to presenting our
( Note: Although we never discussed what would have happened if we had
gone to a Hot Seat instead of presentations, I think we probably would
have ended up having a long meeting with presentations after TTP
processes or rescheduling the presentations. The feeling I have is that
the feeling work takes priority and that the project presentations
primarily serve as a tool to reveal, access and address feelings
- Each member presents their project
- All members provide feedback to the presenter, one after another.
- Presenter checks with each member that they have accurately
received the feedback
- Corrections and clarifications of feedback are given by
members if needed
- Presenter thanks each member and shares some feelings/insights based
on the feedback
- The next presenter presents
- Once all members have presented, we check out on the project and
- We check out on the meeting
My experience of the meeting is as follows.
- I feel good, energetic and a bit self conscious at check in
- I notice I feel connected to my fellow Tribe members
- I feel concern and empathy related to different issues being reported
- I recognize I've recently experienced and used Heart Rock to process
similar issues I have
- I notice I am experiencing the presentations though the lens of the
- I notice the feedback that I provide relates to how the projects
provide a different vantage point or entry point for issues that come
up in check in.
- I feel tired through the presentations.
- I want to shut down. I notice this feeling and embrace it. Embracing
the shut down feeling causes a shift - it sharpens my focus and helps
me see some potential issues hidden in the presentations.
- As I present, I notice some physical tension dissipating in my chest
- I receive a tremendous amount of very insightful feedback and am able
to identify a potential Rocks/Hot seat entry point based on feedback I
- I feel gratitude and warmth toward our Tribe
- I feel gratitude and warmth toward Ed and encourage Tribe members to
call/write to report their experiences and thought
specific Virtual Tribe and the format.
- I feel optimism and a sense of accomplishment about the overall
progress we've made individually and as a group as a result of Tribe
Thank you Tribe!
Thank you Ed!
PS. Guys, this is not one of our agreed to FAQ updates. I just wanted
to document the meeting, keep Ed in the loop regarding our Virtual
Tribe and make a contribution to the FAQ readership.
you for sharing your process and for documenting your meeting.
Please find, below, my recent Tribe Report,
Trader or Nothing
story of Joseph is about a
young shepherd boy who has a gift for interpreting dreams. He also
has a gift for dramatic swings in his “equity”. He goes from
favored son, to slave, to running a major aristocratic household, to
jail, to viceroy of Egypt. He advises Pharaoh to buy grain cheap
during the time of plenty, store it, and sell dear during the famine
foretold in Pharaoh’s Dream. This Savvy trading results in his
promotion to Viceroy of the most powerful nation of the time, ending
his equity drawdowns.
reflects Joseph’s ups and
downs. From 1993-2015 I experience wild swings in my equity. I am a
good trader and able to make money, however I have trouble holding
onto it. In 2015 I embark on a journey which includes work with my
Trading Tribe. This journey includes self-discovery and a commitment
to intimacy. My trading becomes less exciting, less dramatic. My
earnings become more stable. My life and relationships also start to
exhibit less drama.
Live Cattle and Lean
Hogs are the contracts I trade most actively. At the beginning of
2016 these contracts become subject to rules about the volume of
messaging (changing order specifications). As a spread trader/market
maker working to earn the bid/offer spread this change interferes
with the execution of my trading strategy. I change my entire
execution strategy shifting from posting bids and offers to sniper
trading (automatically hitting posted bids and offers when they reach
Trading results since
the change have been
unimpressive. I experience lower trading volume, lower PnL
volatility and lower profits. The purpose of this project is to face
the challenge, and get my trading back on track
From February 2016
through April 2016 my
response is to medicate my feelings. My techniques for medicating my
feelings of fear and anger include compulsive sex, shopping, travel.
Ignoring, and denying the problem and procrastination. I fear that
if I am unable to adapt as a trader I will lose my self-identity and
ability to earn an income. I fear that if I look hard at this issue
I will not be able to withstand the emotional impact.
I have made my
living as a trader since 1993
I have significant
I have adapted
several times over my career. I have experience with this
I know what it takes
to right this ship.
I am a trader.
I am a well-paid,
Starting today I will
reintroduce into my life
and my trading the practices which support success.
The benefits of righting
this ship include:
Continuing to earn
my living doing what I love
Tax advantages of
capital gains income
self-learning and growth
Trading is fun
Freedom to live and
work anywhere there is Internet and power
(skydiving, museums, charity events, concerts, boating etc.)
Failure to right this
ship will result in pain
including some or all of these:
I draft an action plan
incorporating the practices supporting success. I document the
implantation of the schedule, and report the results.
Each week will include
Yoga 2 times
including walking the dogs 2 times
Donating money or
helping another person 2 times
Prayer or meditation
(including rating my focus during trading)
significant opportunity to use Heart Rock (and taking the opportunity)
A written Gratitude
joined a yoga studio and practice yoga at least 2 times this week
exercise 2 or times this week and sign up for a half marathon in
November and a marathon in March. I am committed to exercise
consistently donate money and help others.
Praying or meditating at least 2 times week
I am not
I am not
doing significant Tribe work
significant opportunities to use Heart Rock
I do not write a gratitude list
you for sharing your process.
I feel like there is a lot of uncertainty in the markets at the moment,
so I have been doing some research on market chrashes recently ... and
I came to the conclusion that we are heading for a rather gloomy future
The reason for this is amongst other things the QE program arranged by
the Federal Reserve, going all the way back to when Alan Greenspan was
... the real value creation in the markets was made roughly
between 1970 and 2000, and that the market we are experiencing now is
held at artificially high levels.
If we had only let the powers of the free market unfold in the
aftermath of the crisis in 2008 we could have avoided the next market
crash. Thus the real "market clean-up" did not happen, and so it is too
late for that now.
One scenario we could be facing is a hyperinflation of the dollar,
followed by other currencies around the world, which in turn would lead
to a major market crash ... if or when this happens, the world's
financial system would have to restructure itself and consequently the
new currency will be backed by gold, which has always been the case.
This has actually been the case with all the fiat currencies that have
existed throughout the human history without exceptions. Therefore it
is time to invest in precious metals, and we are going to witness the
largest weatlth transfer of all time.
So I wonder Ed, do you share some of these thoughts and what is your
opinion of the market at the moment.
you for raising these issues.
In my book, Govopoly
in the 39th Day, I note the inevitability of
price inflation - as the economic system brings production and
consumption back into balance.
I also note that the moral hazard that attends monetary inflation also
contributes to price volatility, so you might do well to figure out a
risk management plan to go along with your inflation hedge.
I want to share my process (and progress) in opening my heart to
relationships in my life.
I notice I feel enthusiastic about responding to others, even people I
might have previously taken for granted or overlooked because they do
not reflect something "special" that my ego might gain from.
In a relationship that I had hoped would progress to a deeper
connection, I notice that when the other person decides not to go
forward, I accept this decision with a peacefulness that surprises
me. I do not have to control the outcome. I feel a
sense of loss and I understand that what I have lost is a fantasy, not
the actual person.
I believe that accepting others as they actually are, instead of
judging and comparing them to how I need them to be, results in more
relaxed and joyful interactions with almost everyone in my life.
I start to trust that everything happens the way it needs to happen,
even things that seem disappointing or upsetting at first.
Assumptions about the future just naturally diminish when I stay more
in the present. All that's left is curiosity and some
excitement about what will happen next.
I feel grateful to you and to TTP for much of this personal
growth. Thank you!
you for sharing your process.
Birthday Adam Smith
Adam Smith was born on June 5, 1723 in County Fife, Scotland. He never
married and in 1776 published what is still considered today, 240 years
later, the great book on economics, An Inquiry into the Nature and
Causes of the Wealth of Nations.
My father gave me the two-volume edition pictured here. His father gave
it to him on Christmas Day, 1920.
The last line of the book reads "If any of the provinces of the British
empire cannot be made to contribute to the support of the whole empire,
it is surely time that Great Britain free itself of the expense of
defending those provinces in time of war, and of supporting any part of
their civil or military establishment in time of peace, and endeavor to
accommodate her future views and designs to the real mediocrity of her
Fits right in. Govopoly is the sequel!
you for sending me the information and photo.
Action - Employment Down Again
This chart shows a continuation of decline in productive employment, as
you describe in your Govopoly
you for sending me the chart.
I would like to learn how to trade using the trend following method.
Please let me know if you are still willing to help.
you for reaching out to me for help.
The Help: Start by writing down, in detail, what you wish to
accomplish. Then, send it in to FAQ.
Action - E15 Gas Warning
Recent regulations requiring a high level of ethanol in gasoline might
actually act to harm your car.
you for sending me the link.
Chief of Chiefs,
Hard to believe that it’s been a dozen years since I attended the
Incline Village tribe meeting and I asked you about the meaning of the
Jade Master story.
I’m still working on understanding the meaning of the story, LOL, and
I’ve come with many hypotheses over the years, the latest of which is
that the best learning happens at the subconscious level, is
effortless, and comes from having a clear intention, being patient,
being fully there (sticking with the system), and going with the flow.
Although I am a very lousy trader, you’ve helped me in all other areas
of my life, Ed.
You are a great teacher. Over the last 12 years since I met
you, I’ve managed to:
Have a clear intention and plan. To me, that meant putting
trading on hold and focusing on career, finding love, and reaching
Become financially independent. I will be retiring in March
of next year at age 55.
Find love. I ended an unhappy marriage of 30 years and I am
now with the love of my life.
Improve my relationship with my kids.
Build my dream homes in the US, Lebanon, and the Philippines.
All accomplished, Ed, thanks to having a clear intention, to breaking
away with the mainstream, and to not giving a hoot about the rat race
and what “others think of me.”
Now I am ready to go back to trading with a long-term trend-following
system that triggers only a few trades a year and that allows me to see
this big, big world one city at a time, one country at a time.
Best Regards Chief.
you for checking in and for sharing your process.
It takes me a day to write a new API to switch my data feed away from
IB, if the new data feed works well, it saves me a thousand dollar a
month. I start to see the advantage to write my system by myself,
changing code is quicker and more efficient.
you for sharing your process.
The last couple of months have been interesting for me. I have a lot of
stress as I come to the end of my contract. The local economy starts to
really take a down turn for the worse with the falling iron ore and oil
prices. Many people are laid off in wave after wave. Many are out of
work. Jobs are scarce, difficult to find. Competition is heavy and pay
I think about joining the police.
The attractions are:
• I don’t need prior experience or
qualifications. I can continue to earn and support my family while
changing career paths.
• I can serve others in a meaningful way
• I would be active and have job variety,
I wouldn’t be stuck behind a desk, shuffling numbers all day, feeling
stressed by arbitrary, un-meaningful deadlines. This would be better
for my health.
• I would belong to something, and be
part of a team
• I would have some job security, instead
of going from contract to contract.
• I would be doing a job that was
considered by some, importantly myself and my family, of being
respected and valued in the community.
The disadvantages are:
• I would have to work shifts
• I would take a significant pay cut (in
return for future job security)
• I might be killed or maimed
• I would face life or death, stressful
• I would face violence, disrespect and
• I would constantly see the worst of
side of humanity
Despite this, I hope and believe I could make a difference. I believe
in serving and protecting my community. My family are supportive
although they are concerned about my safety and about me taking a pay
Anyway, I have undergone the recruitment process for the last 5 months
and I wish I could say I was accepted into the training school but I
got my letter a couple of days saying: “Thank you for your
application…. Unfortunately on this occasion you are unsuccessful….”
I am disappointed but this is not entirely unexpected. I self-sabotage
One of the values required is honesty.
In a psychiatric assessment test I am faced with the question: Yes / No
? “Other than marijuana, have you ever taken any drugs?”
I think about this for a moment. I recall once, in a nightclub in
London, I am given ½ an ecstasy tablet. I take it and suffer no effect.
I realise afterwards how stupid this is. It could have been rat poison
or icing sugar. What am I doing?, where is my life going if I go down
this path? I never do this again and never again touch any other drugs.
I tick, NO, as I try to sweep this under the carpet and forget about
this moment of past stupidity. I justify my answer by thinking it was
just once, they don’t have to know about this, they can never find out
unless I tell them.
Another question: “Have you ever, more than once or twice, used
marijuana?” Yes / No ? I reluctantly tick YES, as all my friends and
even most parties I go to it was available and used extensively. In
truth I used it a lot during university.
A couple of weeks go by and I am called for a face to face interview.
I am grilled on the marijuana usage for about 10 – 15 minutes near the
end of an exhausting and invasive interview. Then I am asked “Have you
ever used any other drugs?” As this is face to face, and as, inside, I
want to be honest, I come clean and tell them about the one time ½
After I do this, I know they can’t possibly accept me. I have
demonstrated dis-honesty and inconsistency in the application process.
Ed’s words from the 2013 workshop ring in my ears: “If you haven’t got
integrity, what have you got?” “You got nothing”
In some ways I am relieved that I did come clean. There are times when
we are all tested for integrity and when doing the right thing is
costly and of no benefit to ourselves.
I think about the Jews in WW2. There was no tangible benefit to helping
Jews and hiding them from the Nazis, indeed it was dangerous and
costly, perhaps even your wife and kids lives were at stake, but it was
the right thing to do and some stepped forward and did just that,
simply because it was the right thing to do.
Even today, it is costly to stand up for humanity. Where are those who
speak up against those who will pass laws against Muslims, foreigners
and Mexicans, simply because of their culture or ethnicity, there is
little tangible benefit to doing so, but it is the right thing to do.
I have had a personal lesson in what integrity really means. I hope,
from here on out, I can start to demonstrate integrity during the rest
my own life.
Thank you Ed, I feel a sense of sadness and relief as I finish this. I
feel tears well up. I can always try again in 1.5 years’ time, when my
exclusion period ends….
you for sharing your process.
In some cities, the police may find themselves in a position to shut
down some drug dealers and to protect others that play along with
In this situation, police recruiters might like to know that you plan
to play along and not rat them out - so they might like to know a lot
about your feelings about drugs and honesty before hiring you.
You might consider taking your feelings about <right and
wrong> to Tribe as an entry point.
In your answer of the email "More Questionable Advice" of may 17th
2016, you say " they also generally have strong character", what does
"strong character" mean??
How an apprentice trader can get it??
you for raising this issue.
Character has to do with your moral qualities or virtues, such as
empathy, courage, fortitude, honesty and loyalty.
For example, the aspect of character that has to do
with trustworthiness, reliability and loyalty - may have quite
a lot to do with staying true to your own trading rules.
Generally, you and your apprentice can get more character by using what
you already have.
Attend a Workshop
I notice you post that you sense demand for a Workshop and may host one
later this year.
I feel excited but also nervous I may miss it. I recall the
last two workshops take place in October.
October 20th marks my first child's due date. I feel I have a
better chance you might consider my desire for a workshop date that
falls either earlier or later than October compared to convincing my
child to arrive on a specific date.
Maybe you consider a Workshop date in early September or November.
you for guiding me in the matter of the date.
I can host a Workshop in November, either in Puerto Rico or in Austin,
TX - depending on demand.
Dynamics - Small Group
I really like the little information out there on you. I tried to
better understand your analysis approach and looked further into System
Folks may easily skip that aspect. I believe it is fundamental for a
better understanding of what goes on around us. I wished I had
discovered this much earlier in life. Now, I am encouraging my son to
study it in university. At least something meaningful, while most of
the stuff taught today is a waste of time. I should know since I have
been in higher education all my life as Admissions Director. Now, I
work and live in the middle of the dessert in [Country].
I want to start a Tribe with a friend or two. Unfortunately, my friends
don't know anything about investing at all, let alone
trading. Can we do that alone in a small group?
Investing has a lot to do with self realization. The market
is the best guru - merciless.
We yet also want to make money to eventually become self reliant. So,
this shouldn't be a pure spiritual process. Your concept that
we cannot change the things that are happening - I agree. Do want to
learn how to ride wave though - those winners.
you for sharing your insights about System Dynamics.
You and your friends can start a group from the instructions in my book.
You can also pick up technique by visiting other Tribes and by
attending a Workshop.
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