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July 21 - 31, 2005

 

<== Previous  |  Next ==>

 

 

Questions

(Quotes from Ed in Red)

Answers

Sun, 31 Jul 2005

 

Holes and K-nots.


Hi Ed,

Wonder if you know of the song:

 

To live is to fly

by Townes Van Zandt



The lines of the song go:



We all got holes to fill,
And them holes are all that's real.

Some fall on you like a storm
sometimes you dig your own.

The choice is yours to make,
Time is yours to take
Some dive into the sea

some toil upon the stone.



Just what you've been telling us!

Holes. K-nots.

OK.

 

 

Townes Van Zandt

(March 7, 1944 - January 1, 1997)

 

Clip: http://www.muzieklijstjes.nl/

Tips/ZandtTMcCabe.jpg

 

Sun, 31 Jul 2005

 

Diversification


Hello Ed,

I designed a system which makes profits in trends that come after normal sideway markets but loses in long-term sideway markets.

Maybe there is no way to avoid losses in long term sideway markets; maybe the solutions is to diversify so that if one market is going sideways another market would be trending.

Therefore testing on a single security can get negative results every once in a while; yet it doesnít mean that there is something wrong with the system, I mean no one can make profits in long term sideway markets in a single security, for example lets say 2 years sideways.

What are the benefits of diversification?

Yes, trend following systems tend to do well in trending markets, poorly in trend-less markets

 

For a discussion about risk and  diversification, you might check the article on Risk Management at Resources, above.

 

 

 

Sideways Markets

can do to your trend system

 

what these instruments

can do to a tomato.

 

Proper risk management

is essential for getting you through

to the next set of trends.

 

Clip: http://www.cvilla.com/

ginsu-classic-10.jpg 

Sun, 31 Jul 2005

 

Positive Intention of Why



Dear Ed,

Ed says: Asking the question, why, does not seem to lead to much insight.

I'm wondering in your development of radial momentum, do you ever have a burning feeling of curiosity, that leads you to ask why it is (or isn't) the case?

 

From stories about Edison or Watt I thought scientists tend to start with their feeling of curiosity, keep asking why and relentlessly seek the truth from experiments and research, and the determination to answer the why eventually lead them to insights and discovery.

That isn't the case for you?

Thanks for sharing. I truly appreciate it.

I suspect that nature tends to reveal her beauty more readily to those who view her as wonder-full than to those who why her or treat her as a curiosity.

 

You might consider taking your feelings of curiosity, why and wonder to your Tribe as entry points.

 

 

 

Wonder Woman

seems to excite different feelings

 

than Why Woman

or Curiosity Woman

 

 

Clip: http://www.indytel.com/

~thompson/samples/wonder.jpg

Sun, 31 Jul 2005


Correction


Dear Ed,

In a 2/29/04 FAQ (About Copyrights), you wrote, "One approach to writing is to go with he flow, and be considerate of others."

I believe you mean "go with THE flow"?

Thank you for the catch.  It now stands correctly.

Sat, 30 Jul 2005

 

20%


Dear Ed,

Ed Says - 2/04 FAQ, My experience is that about 20% of the activities you perform as a trader contribute about 80% of your profit - and that the other 80% of the things you do, have, at best, no effect.

Can you give some examples of the activities that are in the 20%?

Thanks.

Three important activities are: placing Stops, placing stops and placing stops.

 

 

 

Placing Protection

can be quick and easy.

 

not placing protection

can be slow and painful.

 

Clip: http://www.mcshome.com/

images/stop.jpg

Sat, 30 Jul 2005

 

Vancouver Rising

 

 

Hi Ed,

 

Vancouver trading tribe reports one new member for a total of 5 including one woman.

OK.

Sat, 30 Jul 2005

 

Expectations



Dear Ed,

From reading the FAQ, it seems a lot of the issues people have are when they try to manipulate another person to be someone whom they want him / her to be. You seem to be suggesting that even to children, we may be better just to learn from them rather than telling what they should be doing or what they shouldn't do. In other words, just fully support the person as who s/he is, without any expectation or judgment, much like we do to the sender on the hot seat.

However, I find it very difficult to live without any expectation of any other person. For example, when I get on a cab I expect the driver to take me home fast and safe, or when I go to a restaurant I expect the waiter to serve me. Implicitly I have an image of how they "should" behave, and if they don't live up to that expectation, for example if they are rude, then I become upset.

I can see how it could be a problem, since my joy and contentment is dependent on how others act. I feel that the root of it is that I'm projecting on how they should behave. Is it some kind of manipulation? However, I also feel that in the society we live in, there are implicit contractual agreement that we need to go by.

 

For example in the case of a driver and a passenger, there is a mutual agreement that the driver takes the passenger to the destination and the passenger pays for the service. In these cases, when the other party fails to honor their part of the agreement, I find it difficult to accept that without judgment.

Can you please share some of your insights? Thanks.

When you share your visions with others and align with them you tend to get supportive agreements.

 

When you unilaterally decide what someone else should do, you may not get supportive agreements.

 

The former tends toward right livelihood while the later tends toward drama.

 

The former employs expectations as markers to help keep everyone on the path.  The later employs expectations to detonate dramas.

 

 

 

Balancing Expectation

with agreements

 

helps to move things along smoothly.

 

 

Clip: http://www.petershaughnessy.ca/

Individual%20box%20pages/

balanced_expectation.htm

Sat, 30 Jul 2005

 

Free Fall: One Tough Chick

Very cool to watch the physics of this animation. you can grab her with the mouse and toss her around.


http://www.w2knews.com/

rd/rd.cfm?id=050704FA-Bounce

Yes.  When you are willing to surrender to the forces around you, you become the flow.

Fri, 29 Jul 2005

 

Fractal ED Koan

Ed can be read on so many different levels.

 

 

 

The Top Bar of the E

appears below

 

 

 

The Top Bar of the E

appears below

 

 

The Top Bar of the E ...

 



Software by: Apophysis

http://www.apophysis.org

Emb-ed-ed-ed.

Sat, 30 Jul 2005

 

Vulcan School of Stock Trading

 

 

I will not get all emotional

about stock trades.

 

Clip: http://www.geekculture.com/

joyoftech/joyimages/712.gif

The Captain and Crew of the Enterprise donít appear to work for money but rather for personal fulfillment. They seem to have little interest in trading.

 

Star Trek VI does contain a rare reference to money: McCoy says to Spock, "I'd give real money if he'd shut up."

 

The Ferengi, however, have a reputation for active, even unscrupulous trading.

 

Ferengi Rules of Acquisition: http://www.trainerscity.com/

startrek/rulesen.php3?lang=en

Fri, 29 Jul 2005

 

Real-Time Data Error


I used to run my data through a program  which flagged for data errors. This was about the same time I optimized my 2 parameters (time and price) for each different commodity.

Now I eyeball the data and parameters over a 1 year (daily close) chart. I use average daily volume only to decide whether the stock is liquid enough to trade or not. This works better for me.

Last week, there was a real-time data error at an exchange which showed the stock XWG traded at 9999 and set off one of my trailing stops. Afterwards, I realize that trading small helps me manage this type of (non-systematic) data error.

OK.

Fri, 29 Jul 2005

 

Should and Shouldn't


Dear Ed,

From studying the TTP concept, I learn that Fred is creating drama for us so as to have us experience some feelings that CM prevents us from experiencing. Those feelings become knots, and they mostly come from the "should" or "shouldn't" that we get from our parents / authority figure / society / etc.

So it seems to me that essentially we're picking up a big rock and drop it on our feet, and then use TTP as a tool to remove the rock so that it can be constructive rather than causing pain. While this is better than never remove the rock and let it dictate our life, I can't help but keep thinking that maybe a better way is just never pick up the rock and drop it on our feet in the first place!

I look again at how we create our knot. You mention that "CM may learn from a parent or authority figure that a particular feeling is 'bad' and that one 'shouldn't feel that way.' CM may associate the feeling as dangerous in itself and want to block it out." OK, then it seems the answer is in not forcing ourselves on what we "should" or "shouldn't" do. That way, we can let whatever feelings we have to go through without any blocking. Just go with the flow of the feeling.

All sounds good to me so far.

But here comes the question. Let's say I'm in a store, and I have a strong feeling of wanting this thing. I want it very bad but I don't want to pay the price. So noticing that the salesperson is busy, I have a very strong urge to just steal it. (Of course in a perfect world it'd be great if I just take that feeling of wanting to steal to a tribe right there, but in reality I can't) Now thank to the "shouldn't" I learn, I fight really hard and resist the temptation of stealing, and just walk away.

So it seems that there is a positive intention of the "should / shouldn't," and that it may not be practical to just go with the feelings (in this case, steal it) all the time. Now does it mean that there is really no good way out of this "'Should/shouldn't' -> Knot -> Block -> Drama -> TTP" sequence other than keep repeating it until I resolve all the should / shouldn't?

In TTP we emphasize keeping agreements and respecting private property. 

 

We avoid telling people what they should do and, particularly, what they should feel.

 

You might take your curious phrase, I want it very bad to your Tribe as an entry point.

 

I want you
All tattooed
I want you bad

Complicated
X- rated
I want you bad

I mean it
I need it
I want you bad

 

Lyrics From: I Want You Bad

by Offspring

 

 

Lyrics: http://www.lyricsfreak.com

/o/offspring/102610.html

Wed, 27 Jul 2005

 

Typo



Hi Ed !

I like your blank page. So much stuff is on the internet, it is restful to gaze at a page of nothing.

On the Wed, 20 Jul 2005, TTP Shows Up in Mainstream ... response, you might want to change "think" to "thing".

Thank you for the catch.

Tue, 26 Jul 2005

 

Workshop

Good afternoon, Ed,

I am in the process of reading your book (which I am thoroughly enjoying) and find that I would like to attend a workshop. I would appreciate it if you could update me on your plans for future workshops.

See Below.

Tue, 26 Jul 2005

 

New Company


Dear Ed,


[Name] and I have founded a company last year and I trade a discretionary futures fund since February this year.

Trading other people's money is more different (difficult?) than I expected. The feelings that come with it are new and sometimes extreme.

 

I am searching for something to help me with all these emotions and I come across TTP. Though I am not sure if I find TTP or if TTP is finding me. I look on the web and see that the next closest Tribe is in Munich (about a 4 hours drive).

 

I go there and already the one time helps me to experience my feelings. I go again next week and I look forward to it. I bought your book and like it a lot.

I definitely want to participate in a workshop. Please put me down for the next one. If you decide on the London workshop, even better.

I am looking for a location in the London area for a Workshop later this year.

Tue, 26 Jul 2005


Bliss Functions


I guess this is not your intention with Bliss Functions:

Bliss (virus)
From Wikipedia, the free encyclopedia.

Bliss is a computer virus that infects GNU/Linux systems. It was posted on a Usenet user group by its author on February 5th, 1997. When executed, it attempts to attach itself to Linux executable files, which regular users do not have access to. This prevents the executables from running, so users notice it immediately. Although it was probably intended to prove that Linux can be infected, it does not propagate very effectively because of the structure of the Linux user privilege system.

It writes a neat log of all its actions to /tmp/.bliss and even has a

 

 bliss-uninfect-files-please

 

command line option that sometimes might come handy, and actually does what it promises.

OK

 

 

Bliss

 

oblivious to Linux,

viruses,

and even the notion of bliss itself

 

Clip: http://www.pbase.com/donde/

image/24827007

Tue, 26 Jul 2005

 

Dynamic Risk Modification



I do a lot of years of testing (day in day out) and discover this dynamic risk modification that you mention (usually made to improve something) to be judgmental or technically speaking a curve fitting proposition, especially if you consider the impact it has on the length and depth of the drawdown ... I discover it has no added value to my trading...! What is good for me may not be good for you and so on

Also I learn quickly that my intention is to find an edge in trading so I work hard and find it and then stand still and go trough the inevitable downs and ups for as long as I leave i.e. E = M x Commitment^2

Intentions=Results i.e. my intention is to fully and unconditionally experience all feeling that come with drawdowns and run-ups in equity, forever.

I also learn not to:


(a) endorse traders or commercial products
(b) offer instrument-specific trading advice
(c) recommend specific trading system parameters
(d) tell people what they should do

I fill bliss, both in bad and good times!!!

Regards,


---

bliss
1. a state of great joy or happiness

2. a computer language used for systems programming primarily on computers
produced by Digital Equipment Corporation (DEC). Bliss is a parallel language to C,
both being derived from B and BCPL.

Yes.

 

 

 

When You Can Play a Game

and not see your own reflection

 

you are at the zero point.

 

Clip: http://graphics.cs.uni-sb.de/

Dynamic/Images/chess.jpg

Tue, 26 Jul 2005

 

Opportunity


Ed says, "No trend, no profit - All profitable trading is trend-trading. If you want big profits, you want big trends, and to trade long-term." - FAQ 2/04/2005

It sounds to me that the longer the time frame, the bigger the trend, and the bigger the profits.

PNL = #contracts * (ExitPx - EntryPx) * opportunity,

where #contracts is a signed quantity whose magnitude is a function of my risk tolerance and #opportunity >=0 depends on market conditions.

Then my question is, while it's true that a big trend likely makes ( ExitPx - EntryPx ) larger, doesn't it also likely decrease the number of opportunities?

Thanks.

One way to check if an equation makes sense is to check each term to see if you can define it and identify its units of measure.

 

I am not clear about the definition or the units of measure of your term, opportunity.

 

If opportunity  is a relative of probability, you might be employing a term fundamental analysts use that alludes to the non-existing future,

 

You might consider taking your feelings of wanting to figure it out to Tribe as an entry point.

 

 

 

The Notion of Opportunity

 

sits on the notions of probability,

causality,

 and the non-existing future.

 

 

Clip: http://www.tqnyc.org/

NYC040759/bad%20gurl.jpg 

Tue, 26 Jul 2005

 

Preference (FAQ 7/12/05)

Dear Ed,

Your answer seems to hit on an idea in me but I still can't imagine how to have preference without judgment?

 

If I strongly prefer flying and arriving on time, I naturally judge that stuck at the airport for three extra hours as "bad."

You might consider taking the feeling of bad to your Tribe to find its positive intention.

 

 

Bad Kitty

 

Fundamentalists wonder

it it's Kitty's fault

or society's fault.

 

In TTP,

we look for the positive intention.

 

 

http://www.danielchampion.com/

archives/bad%20kitty.jpg

Tue, 26 Jul 2005

 

Bliss Functions



Chief, out of curiosity were you by any chance referring to some kind of
entertainment-functions commercial venture in the city of Bliss ... The median income
for a household in the city is $25,313; typical situation of an equitable
culture (good entry point into TTP?) :-(

What to do, what to do???

Cheers


---


Bliss is a city located in Gooding County, Idaho. As of the 2000 census, the city has a total population of 275.

OK.

 

 

 

The Bus Stop at Bliss, Idaho

 

Getting to Bliss

is easier than staying there.

 

Clip: http://www.ramblesandbyways.com/

northwest0598/0598bliss_id1a.html

Tue, 26 Jul 2005

 

Bliss


Chief, I am looking forward to your interpretation or definition if you like of 'bliss function(s)', when applied in the context of trading.

Regards,


---

bliss

n.
1. Extreme happiness; ecstasy.
2. The ecstasy of salvation; spiritual joy.

bliss out

Phrasal Verb  (Slang)
1. To go into a state of ecstasy.

See TSP, above

 

 

 

Bliss

 

Extreme happiness,

ecstasy,

spiritual joy

 

 

Clip: http://www.faerieportraits.com/

images/big/Breathe--In.jpg

Friday, July 22, 2005

 

Bull Market in Debt

In the less than an 100 YEARS since the creation of the FEDERAL RESERVE and the PERSONAL INCOME TAX we have had a ONE-HUNDRED THOUSAND (100,000%) PERCENT INCREASE IN OUR NATIONAL DEBT and the COST OF LIVING has INCREASED by APPROXIMATELY ONE THOUSAND FIVE HUNDRED FORTY-SEVEN (1547%) PERCENT!!!


1900

Over 90% of the population is self-employed.

NO central bank in America.

NO income tax on the Citizens.

Gold & Silver was the ONLY lawful coin.

Government services are paid for by EXCISE TAXES.


1913

NATIONAL DEBT $2.9 BILLION

Creation of the FEDERAL RESERVE

Imposition of the INCOME TAX



1916

NATIONAL DEBT ONLY $3.6 BILLION

Income tax a mere 2.7% for the HALF MILLION people who were required to pay it


1917

NATIONAL DEBT $5.7 BILLION


1933

FDR confiscates the gold & devalues the DOLLAR.

Creation of the FDIC

NATIONAL DEBT $22.5 BILLION


1935

Social Security enacted

NATIONAL DEBT $28.7 BILLION


1965

Medicare enacted

New Ford Mustang sells for $2500

NATIONAL DEBT $320.9 BILLION


1968

Federal Reserve Notes no longer redeemable for "lawful money."

NATIONAL DEBT $350 BILLION


1984

Grace Commission Report to President Regan confirms that income tax revenues
ONLY go to PAY the INTEREST on the NATIONAL DEBT

Government services are STILL PAID for by EXCISE TAXES

NATIONAL DEBT $1.67 TRILLION


2000

Over 90% of the population works for someone else.

New Ford Mustang sells for $17000.

NATIONAL DEBT $5.7 TRILLION.

Income tax over THIRTY-FOUR PERCENT for the average family.


2003

NATIONAL DEBT $6.8 TRILLION.

An approximately TWO HUNDRED THIRTY TWO THOUSAND SIX HUNDRED FIVE (232605%) PERCENT INCREASE IN OUR NATIONAL DEBT since 1913.

$100 in 1913 equals $1,951.52 today.

So the COST OF LIVING has INCREASED by APPROXIMATELY ONE THOUSAND NINE HUNDRED FIFTY-ONE (1951%) PERCENT since 1913!!!

Do you think there might be a relationship?

Your scenario seems to describe the flight path for many societies, democracies in particular.

 

You might consider taking your feelings about inflation and currency debasement to your Tribe to find the positive intentions of your feelings.

 

 

 

Solution for Inflation

 

A zero-dollar bill

never loses its value.

 

Clip: http://drawings.love.ecards.free.fr/

ulybka-art/images/inflation-2.jpg

 

Mon, 25 Jul 2005

 

Dead Link


Dear Ed -

This is your first question ever:

On your November 13, 2002 FAQ: Tricks:

The link you gave doesn't work anymore.

Yes. Links come and go. Here is a replacement for you.

 

 

 

Clip: http://www.kidzone.ws/magic/

Mon, 25 Jul 2005


CME Data Inconsistencies


Ed,

It is serious that CME itself is publishing incorrect data and that they do not bother to correct it even when alerted.

My analyst is testing [Software] and we have found many bugs with the software and with data files.

But nothing like building your own system and clean data. I hope that I can contribute to this project.

You might like to read through the TSP (link above) section on Data Verification to see how such inconsistencies are part of the way the industry works.

 

 

 

Mon, 25 Jul 2005

 

Trading System Project


My reaction to the new project:

HIP HIP HOORAY!!!!! // and a big smile

now we're talking! This is absolutely the great!

I am also starting a project - along with my programmer we begin a system testing platform design in UML.


The goal is to also back-test a whole interchangeable portfolio, not just a static one.

Although I know this is not exactly useful for TSP right now I'm too excited not to send this over. Feel free to use this material anytime.

take care and thanks

See the link to TSP (Trading Systems Project), above.

Mon, 25 Jul 2005

 

Recent FAQ Items of Note


Chief Ed,


I believe this concise definition, recently posted to FAQ, is a great candidate for the Glossary page:


Tue, 12 Jul 2005: Intention is a sense of purpose that leads to action.


I believe the sentence below may contain a grammatical error or typo.


Wed, 20 Jul 2005: We use physical forms as a handles for feelings.


Thank you for recently updating FAQ content, in some volume. I notice that examining FAQ content closely is always a great (perhaps even optimal) investment of my time.

Thanks for the catch.

Mon, 25 Jul 2005

 

No Reply

 

Hello Ed,


You do not reply to two of my Email.

Email is a form of sending and receiving.

Note: sample text from emails, below


Breakouts are not at all a holly grail, risk and money management and diversification are the basis yet entry and exit are also relative; therefore as a trend trader we use price only.

MA depend on time regardless of price, which is why we may lose a substantial part of a trend if the price moves up or down steadily

Humans use time as an axis to compare between deferent subjects at a certain moment of time to know the final outcome. This means that we can compare between two deferent subjects at a certain moment of time; yet we may not compare a subject with its self at another moment of time because the cause and outcomes are deferent.

You might consider showing your letters to some associates to find out if they have any idea what you are trying to say.

 

If you want an even higher standard, see if a fifth-grader can understand your writing.

 

You might consider taking your feelings of wanting to  pontificate to your Tribe as an entry point.

 

 

 

Some of the Things

that come out of peoples mouths

 

are just things

that come out of their mouths.

 

Clip: http://nogfx.free.fr/galerie/breathe.gif

Fri, 22 Jul 2005

 

Unexpected Results


Ed,

I feel like Breathwork cleared a tremendous space within me that I previously dedicate to running some financial drama. I feel like I make allies of all kinds of feelings during the Breathwork session, not just the specific issues I took into the process.

A curious side effect of all this is that in addition to taking steps to raise money for my trading business, I find myself focused on my physical fitness.

 

It seems that I used a lot of mental energy to keep my drama running and now that I don't need the drama any longer, I get to focus on other areas like physical fitness. It is an important part of life that I historically relegate to a distant third or fourth priority, and I constantly push taking action on it into the non-existent future.

My thinking historically is that there is plenty of time to get fit after I succeed in my business. I now see this as an excuse and an example of bad logic. It also possibly keeps me from experiencing business success in order to avoid facing the process of becoming physically fit.

 

I now feel that I am likely to see my assets under management and my trading equity curve grow as an inverse image of my weight chart, at least for the short term. It is likely that the same skills are necessary for business success as physical fitness (discipline, commitment, overcoming adversity, practicing good habits every day), and it is likely that as I approach my weight and fitness goals, I approach my business and financial goals. These items seem much more holistically intertwined and integrated than I previously experience them to be.

Also, thank you Ed for the inspiration you provide via your "Body in Shape" snapshot. It provides an example for me and I have now enrolled my family and my local tribe in supporting my commitment to achieve physical fitness.

 

I include an example of my fitness log showing today's entry (the first one). I intend to create an entry for each day and to continue the log until my weight is 190 pounds.

Thanks for your support!

Best,

Yes.

 

 

The Secret to Staying Alive

is to keep breathing.

 

Meanwhile,

you may notice

your body

changing shape.

 

Clip: http://d6168079.u80.

darwebhosting.com/images/

body%20shape.JPG

Thu, 21 Jul 2005

 

The TTP Concept Spreads


Hi Ed,


It appears that another coach has had a semi-aha about your teachings.

Feature article from Van Tharpís July 20, 2005 weekly newsletter: Feeling Release

See: FAQ July 20, 2005

Thu, 21 Jul 2005

 

Breathwork Results


Dear Chief and Breathers,

I can not believe it, but I have no problem with to get up early enough and be on time in my office.


Also I am not drinking during the week since the Breathwork, I have no desire to drink alcohol during the week.


I get up early in the morning (6:50 am) with any effort.


I do not feel tired, lazy, sluggish etc. I just get up, I do not think about: should I get up or stay longer in bed etc I just do it.

Now I am asking me, can it be so easy? Can life be so easy?


I mean with one Breathwork, I solve this problems without any effort.


I am looking forward to see what will happen until 30 September and after that of course.

Thank you again Ed and my Breather Support Group!

Yes.

 

 

The Secret to Staying Alive

is to keep breathing.

 

Meanwhile,

you may notice

you no longer

have much attachment

to drugs and alcohol.

 

Clip: http://www.davesdesktop.com/

fantasy/breathe.jpg