© Ed Seykota, 2003 - 2006 ... Write for permission to reprint.

Ed Seykota's

Frequently Asked Questions

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Nov 23 - 30, 2005

 

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Questions

(Quotes from Ed in Red)

Answers

Wed, 30 Nov 2005

 

Trends

Hi Ed,

I am reading the "Trends" page in TSP, and I find the following words you have very interesting:

"All trends are historical, none are in the present."

"Motion, velocity and trend do not exist in the now. They do not appear in snapshots. Trend does not exist in the now and the phrase, 'the trend' has no inherent meaning."

I can understand your statement. What surprises me is how often you talk about trading with the trend, and trading in the now for neither the future nor past exists. Yet, trend is not in the present; trend does not exist in the now. It is very strange to realize that the two important ingredients (trend and now) of your style of trading are actually so "incompatible" yet so vital together.

Very strange and shocking to me. Thanks for the teaching.

Yes, you trade in the now, on your perception, now, of historical trends.

 

 

 

Trends in Fashion, and in Markets

 

are hard to predict

and are evident

only by looking back.

 

 

Clip: http://www.ebaumsworld.com/

images/backtie2.jpg

Wed, 30 Nov 2005

 

Bangalore Tribe



Dear Mr. Seykota,

I follow your FAQ and website and find it to be very
useful.

I want to start a Trading Tribe in Bangalore, India.

 

Welcome !

 

Bangalore

 

India

 

Tue, 29 Nov 2005

 

Can't Connect

Dear Ed,

I sent the [City] Tribe two emails regarding attending one of his meetings but heard nothing back. I am concerned my communication to him is not being received.

I appreciate any assistance in connecting.

I personally manage the Incline Village Tribe. I do not manage or coordinate any of the other ones. 

 

If you do not find a Tribe in your area, you might consider starting your own Tribe.

Tue, 29 Nov 2005

 

Never Enough

Dear Ed,

I hope you had a happy Thanksgiving.

I notice my wife has some feelings about "not having enough." When I offered my guest some fruit juice (which are cheap and we got as a gift anyway, and likely have more to come), she was noticeably not happy about it, although she tried to downplay it when I asked her what was wrong.

It is a recurring theme. She is happy most of the time, but there are moments when she'd get uneasy when she feels like we do not have enough - not enough space, not enough money (as in financial freedom), not enough this and that. So I ask her about her feelings about sharing. I am not trying to "fix" her but just curious about what gets her so irritated when I offer our guest something so trivial and that we have plenty. She says she doesn't like it when we find ourselves short of things. She says she feels good when we have plenty, when we have a lot.

Several days later, after Thanksgiving, she went on a shopping and bought me two coats. They are on sale, and they look very nice. She is very excited, very happy about the bargains. Now I do agree the coats look nice, and they are indeed bargains. However, I have more than half a dozen already. Although they are different kinds, there is only a limited number of coats I can wear, and they usually can last for years (one was bought 12 years ago and still looks great). As good as those new coats are and as much as I appreciate her thoughtfulness, I just don't think I have the need nor the room for them (We live in an small 2-bedroom apartment in a big city).

Now I know if I tell her directly that I think it is better to return the coats, she likely won't be happy about it, especially after how giggly she was when she showed me the coats. I respect and want to validate her feelings about wanting to have plenty, and in no way do I want to hurt her feelings. So what is the TTP-way of handling the situation? To encourage her to keep buying more so as to feel plentiful? I am confused.

If you are curious about what your wife feels, you might try listening to her.

 

The TTP Way is to accept other people the way they are and to work on your own issues.

 

You might take your feelings about wanting to fix your wife and/or fix your relationship to your Tribe as an entry point.

 

 

When You Are Looking for More

 

There's never enough.

 

Clip: http://photos1.blogger.com/img/172/1358/

640/Looking%20for%20signs%20of%20life.jpg

Tue, 29 Nov 2005

 

Intention and Result

Dear Ed,

I have this very weird thought about Intention = Results and I hope you can clarify the concept for me.

Let say I am an evil night-shift cab driver who makes up a plan to rob whoever my next passenger is. I intend to take him to a quiet location, take all his money and brutally hurt him if necessary.

Despite all my planning and ready to take action, this night I have no passenger.

Looking at the result, does it mean that I actually have no intention to commit the crime, even though I have every bit of desire to? Thanks.


P.S.

 
I am eagerly awaiting your transcript of your speech at the TSAA conference. Hope we can get to read it soon. Thanks!
 

An intention is to rob the next passenger attracts a passenger who wants to become a victim. 

 

In your description, I see no intention for the match to occur the first night.

 

Planning, being ready and having desire do not equal intention.

 

You might consider taking your feelings about Intentions = Results to your Tribe as an entry point.

 

 

 

Thieves and Victims

both realize their intentions

 

by enrolling each other

in their dramas.

 

Clip: http://shatteredhorizons.hl2files.com/

concepts/thief.jpg

Tue, 29 Nov 2005

 

The Trading Tribe Book

 

Dear Chief Seykota,

I just finished your book, The Trading Tribe, and am blown away by your ability to simplify the seemingly endless complexities of human behavior.

There is a symmetry and beauty in your writing, that I rarely see.

I have many Aha moments, that supplement the Aha's I experience at Tribe meetings.

Your writing makes me see that:

If we are unwilling to experience the forms of the feelings we dislike, the feelings we dislike will form our experiences.

The information on manipulation is fascinating; As I read, it is truly a revelation to realize that:

Others do not manipulate us against our will. They manipulate us in harmony with our will nots.

I think I understand the meaning of responsibility, but I do not, until I read your book. The responsibility model says that we invite all of this
into our lives.

Thank you for your work.

Thank you for the testimonial.

Tue, 29 Nov 2005

 

Houston Tribe

Dear Chief Seykota,

I have been participating in the Austin, TX Tribe. Based on that tremendously positive experience, I intend, with your permission, to start a Houston Tribe.

 

 

Welcome !

 

Houston

 

Texas

 

Mon, 28 Nov 2005

 

One Man, Alone at his Keyboard ...

Hi Ed !

Evidence for your postulate that one can become a world expert by simply directing intention and consequently spending the time to figure something out.

http://www.iht.com/articles/

2005/11/28/business/geek.php

Yes, that sounds like a fairly straightforward way to succeed.

Sun, 27 Nov 2005

 

Positive Attitude

 

Drama solver; Knot technician - I need your help

Ed,

it is extremely frustrating (Drama) to read on your website about Tribes blooming around the world and people commenting their fab experiences while I am trying since April to enter in the [City] Tribe.

I have a real positive attitude and I would like to contribute to your growing project because I believe in all the TTP process but it seems impossible to join the [City] Tribe.

I have no TT experience so far and I can't create one Tribe by my own, what could I do?

If a person with a positive attitude says "impossible" and "I can't" then I wonder what a person with a negative attitude might say.

 

In the TTP Polarity Process, we combine polar forms, such as positive and negative.  This tends to discharge of the tension holding the k-nots in place.

 

 

When Positive and Negative

receive each other

 

the results may be spectacular.

 

 

Clip: http://www.plig.org/xwinman/

screenshots/lightning.jpg

Sat, 26 Nov 2005

 

Algorithm for Improvement

Hi Ed

I looked through your most recent string FAQ

I admire your ongoing commitment to reply to all of the posted questions. I also admire your trading assistant.

My understanding of developing a practical skill set (which includes trading) is to practice implementing an approach. Every once in a while you measure the results, identify what changes can be made to improve, and then repeat the process of doing with the new changes in mind.

 

Although I trade live, I still practice to improve through off-market trading.

You might consider taking your understanding to your Tribe as an entry point.

 

 

Understanding

 

does not always apply

 

 

Clip: http://i7.photobucket.com/albums/

y274/bailee4/8573I-Understand-the-Concept.jpg

Sun, 27 Nov 2005

 

A Musical Request

Dear Ed,

Recently, while reviewing the FAQ's, I find a fine musical composition of yours: Waking Up With You (Tuesday, December 23, 2003). I play it several times over only to discover that the more times I listen to it the more I enjoy it. However, being a midi file, I can't convert it to an MP3. Can you make it accessible in MP3 format? If you can, then I can convert it to a wave file and finally get to play it in my car. I love the piece and the relaxation I get from it.



 

Thank you for the encouragement. 

 

Mp3 File (6 meg)

 

Here is a recent bluegrass version.

 

Mp3 file (6 meg)  

Midi File (60 k)  

 

Lead sheet - Gif file (17 k)



Waking Up With You

Words, music and arrangement

(c) 2003 by Ed Seykota
 

Intro (4 bars)

Waking up with you
is my favorite thing to do
And I love you so.
Morning sun pours in,
I'm such a lucky man
And I love you so.

Passages through conscious states
Life is such a dream.
Reality's a shifting point of view.
I behold a rose unfold
its essence, then the theme,
my sweetest joy is waking up with you.

Waking up with you,
is my favorite thing to do
And I love you so.
Morning sun pours in,
I'm such a lucky man
And I love you so.

Fri, 25 Nov 2005

 

Snapshot Progress Report

I am thankful for the support I receive for my snapshot.

The 12 server rack has materialized and I continue to do research which mostly proves I already have a good system, and that gives me more confidence.

I continue to research what systems have uncorrelated draw downs and what filters might improve performance.

My trading is on track with good profits.

I want to learn more about money and risk management.

I don't have a real mountain view out the window, but I do have a large very nice picture of the mountains hanging over my desk now.

My library and my knowledge about trading continue to expand.

My trading systems procedures and accounting are much better now.

I have wonderful coffee to enjoy.

We now have seven cats (8 in the snapshot).

My wife is much happier now that she is starting her own business and is no longer working in corporate America.

I long for the time when my snapshot realization means I no longer have to commute to [City] to work. I am doing database, programming, and systems support for the traders at [Name] Bank. My current contract was extended through January 2006 because they like what I have been doing and found more for me to do. I continue to look for work in the trading industry when this contract is over.

I feel my mortality and feel an urgency to realize my snapshot.

Although I have made great progress, I feel impatient that it all not there now.

I feel thankful.

Thank you for your support.

Here is wishing you and yours a happy holiday season!

Thank you for sharing your process.  You might consider taking your feelings of impatience to your Tribe as an entry point.

 

 

Impatience

 

depends on belief

in the existence of time

 

Clip: http://dfwcgs.net/sampler/md_impatience.html

Fri, 25 Nov 2005

 

Defending Against Feedback

 

Hi Ed,

I am glad to hear about your results. [One of your Tribe members] was telling me about the acknowledgment of feedback process and how the sender needs to clearly acknowledge rather than defend the feedback. That is a nice distinction. I feel the difference - especially in SVO-p
 

Yes.

 

 

When You Can Accept Criticism

without defending yourself

 

you transform antagonists into allies

 

 

Clip: http://www.1099.com/c/co/in/insanity005.html

Fri, 25 Nov 2005

 

Possibility Thinking

 

How Does Positive Thinking

fit in with TTP

 

The Pope doesn't seem to dwell on negatives or k-nots.


Consult not your fears
but your hopes and your dreams.
Think not about your frustrations,
but about your unfulfilled potential.
Concern yourself not with what you tried and failed in,
but with what it is still possible
for you to do.

~ Pope John XXIII
 

Yes.  The Church tends to polarize the universe into good and evil - and to place judgments on the evil.

 

This is consistent with tying, rather than un-tying, k-nots.

 

 

Anxiety


• Philippians 4:6-7 – Do not be anxious about anything ...


Confusion


• 1 Corinthians 14:33 – For God is not a God of disorder but of peace ...


Discouragement


• John 14:1 – Do not let your hearts be troubled.

• Hebrews 10:35 – So do not throw away your confidence.

Fear


• 2 Timothy 1:7 – For God did not give us a spirit of timidity (fear), but a spirit of power ...

• 1 John 4:18 – There is no fear in love ... the one who fears is not made perfect in love.

• Isaiah 41:10 – So do not fear, for I am with you; do not be dismayed, for I am your God.


Greed


• Hebrews 13:5 – Keep your lives free from the love of money and be content with what you have.


Lust


• 2 Timothy 2:22 – Flee the evil desires of youth ... call on the Lord out of a pure heart.

• Galatians 5:16 – So I say, live by the Spirit, and you will not gratify the desires of the sinful nature.


Weariness


• Galatians 6:9 – Let us not become weary in doing good ...


Worry


• Matthew 6:31, 33, 34 – So do not worry ... Each day has enough trouble of its own.


Table of Feelings and Judgments

 

Tying K-nots in your followers

is a pretty good way

to gain control over them.



Quotes: The Bible

Fri, 25 Nov 2005

 

Pattern Recognition


Dear Ed,

In your Market Wizards interview with Jack Schwager, you said that your style is basically trend following with some special pattern recognition and money management algorithms.

 

Is pattern recognition simply the use of long term, reactive technical indicators, such as MA crossovers and breakouts, which tell us trend followers when a trend might be starting?


Or is it a process of qualifying these indicators with something more complex, with the intention of minimizing whipsaw losses?

I am currently back testing a system that uses 60 day breakouts for entry, but uses volume to determine whether the move is strong (i.e. the market is interested) or weak (i.e. the specialists are spoofing). Some false breakouts are rejected. Some are not.

Is this kind of second guessing an indicator contrary to trend following? The really great thing about breakouts is that if you ignore one indicator, more will appear to tell you you're wrong :)

Can you provide me with a resource (as per your TSP page) that I can use as a starting point to research my own pattern matching system?

Thank you for the time and effort you put into the FAQ section. It's as entertaining as it is informative.

Best Regards,

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

 

You might consider taking your feelings about guessing to your Tribe as an entry point.

 

 

Good Trading Systems are Like Bikinis

 

They are fairly simple

and they eliminate the guesswork.

 

 

Clip: http://www.jerrys-babes.com/galleries/md/cm_bikini/78.html

Fri, 25 Nov 2005

 

Trading Assistants

Hi Ed Hope you had a thankful Thanksgiving. I did. Are there any former trading assistants in [City] willing to teach or begin a tribe?

You get the Trading Assistant you intend to get.

 

 

 

Mechanical Trading Assistant

 

dumping a position

 

 

Clip: http://www.holisticforgeworks.com/

production_floor/img/bell-discharge.jpg 

Thu, 24 Nov 2005

 

What To Do



Ed: I trade (day trade Yikes!) long bonds at work, with a modest, but steady upward equity curve, and stocks in my PA. This stock trading has benefited from the day trading (stay with trend, cut losses). I would like to pick up the pace, i.e. increase profits via leverage, without blowing up. What would you suggest - slowly increase leverage where I am succeeding, in other words use more margin to leverage equity purchases, or try to learn something new, such as trading futures?

FAQ does not offer specific trading advice,

or tell people what they should do. See Ground Rules.

 

Fri, 25 Nov 2005

 

Buddha

Hi Ed,


To the extent that one resolves their ‘issues’ via TTP, they become more aware & in tune with their situations & surroundings. One becomes more conscious or, if you will, a more enlightened being.

The ultimate goal therefore, would be to resolve ALL your ‘issues’ and become ‘a buddha’

(or as your website states “The ultimate intention . . .for TTP . . . experience it, and for it to disappear and become just another passing AHA”)

Ed, are you a buddha??

Or do ‘issues’ just keep cropping up the further you travel along the path

If the latter, are the issues more subtle & more difficult to recognize & feel OR does it become easier to achieve the new AHA’s as you gain more experience & insight from the previous AHA's ?

You might consider taking your feelings of wanting to resolve all issues, attain enlightenment, become Buddha, etc. to your Tribe as an entry point.

 

 

 

Tribe is Ubiquitous and Essential

 

 

Clip: http://www.art-for-science.com/intimacy.jpg