© Ed Seykota, 2003 - 2009 ... Write for permission to reprint.

Ed Seykota's FAQ

(formerly: Frequently Appearing Questions)

Home  ...  FAQ Index & Ground Rules  ...  Tribe Directory - How to Join

TTP - The Trading Tribe Process  ...  Rocks  ...  Glossary

  TTP Workshop  ...  Resources  ...  Site Search  ...  The Trading Tribe Book

TSP: Trading System Project  ...  Breathwork ...  Levitator

EcoNowMics  ...  Chart Server  ...  Contact Us  ...  The Whipsaw Song ...  Music




April 01 - 16, 2009


<==  Previous  |  Next  ==>



Note: The intention of inclusion of charts in FAQ is to illustrate trading principles - The appearance of a chart does not imply any kind of indication or recommendation to buy, sell, hold or stay out of any positions.




(Quotes from Ed in Red)


Friday, April 16, 2009


Goals and Processes

Dear Ed,

In response to a letter written on March 31, 2009, you write: "In the Workshop, we practice reconciling goal orientation with process orientation." That reminds me of an email I wrote to you a while back, wherein I asked about how to do that. Your answer was useful, as always, but not totally clear to me. Can you please elaborate on how you practice reconciling goal orientation with process orientation in the workshop?



I elaborate on that in the Workshop.


In particular, the reconciliation of these mental constructs may proceed by reconciling associating physiological forms.


Wednesday, April 15, 2009


Setting Apart


$5000 to 15 mil in 12 years; Trading/working with Ed is like drinking from a fire hydrant.

What is it that sets you apart from other very successful trend followers who stick with winners cut losers and manage risk?

If you are ever in [Country] would you come to a [City] Tribe meeting?

One thing that sets me apart is receiving this email from you.

Wednesday, April 15, 2009


Up a Million


I recall your web page





where you mention that Wisdom is the result of Fred and CM working together.

Between 2001 and 2005 i repeat the same drama several times: I save up money and quit my day job to be a full time trader. I fail miserably each time. I feel great pain each time.

In 2005 i am able to relate my experiences with what you write on your webpage.

I feel that just knowing that Fred and CM work together to generate wisdom provides me with great wisdom in itself.

I realize how i am interrupting the flow of experience and creating repeating drama.

I recall losing fifty thousand dollars between 2002 and 2005.

I am able to turn my trading around and am up almost a million dollars in the following four years.

Thank you for sharing your process.

Wednesday, April 15, 2009

Nice Breakout

Dear Ed,

I attach a chart of Willys-Overland stock in 1944.

Talk about the positive intention of a bankrupt auto manufacturer!

From 1912 to 1918, Willys-Overland Motor Company was the second largest producer of automobiles in the US. Ravaged by the Great Depression, Willys went through a massive reorganization in 1936, and went on to sell 360,000 Jeeps to the US Armed Forces during World War II.



Thank you for the clip.



Wednesday, April 15, 2009


My IVTT Rocks Process - Anger


The most significant AHA I have after my anger rocks process is the realization of the ridiculous amount of time I waste engaging in anger drama. A huge amount of my day is diverted away from right livelihood on situations where I believe I am being violated, or violating rules myself, and dealing with the repercussions of both.

I believe I am a mellow guy who rarely gets angry. Therein lies my blockage – I have a judgement associated with anger. I refuse to feel it in the moment of now, and Fred continually looks for situations for me to feel anger. Before my IVTT rocks process, I have two responses to anger: (1) my usual choice was to internalize it, and take it out later on innocent victims; and (2) come to a boiling point and explode in an ineffective and inappropriate – not physically, but verbally violent – way.

Tribe reenacts a scene when I am 2 years old and like to stick forks in electric sockets. In response to repeated demands to stop and refusal, my caregiver burns me to simulate the effect of electric shock. As a result, I re-enforce my family’s usual response to shut down and pretend “it doesn’t matter”, while boiling on the inside. This ingrained automatic response happens time and time again at work: someone crosses a boundary – I clam up – and I come home in a rotten mood, thereby taking it out on my family. Upon realization of this I want change - as my new bumper sticker says: “I am a caring and supportive father, husband, and man.”

I learn getting angry and irritating others is the same concept. The opposite pole of the same situation, allowing others to violate my boundaries, is also the same concept.

With the help of IVTT, we discover proactive ways for me to respond to “anger” situations, and once I receive the new rock, I use my new responses by role-playing various scenarios. Following are my new responses:

(1) Boundary crossing: When my boundary is crossed, I respond in a firm, respectful way.

(2) Share feelings: I let the other person know how I feel.

(3) Ask for feelings: I ask how the other person feels about the situation.

(4) Express myself and find a solution: Without compromising what’s important to me i.e. self expression, discover ways the path to a mutually acceptable resolution

(5) 5% response: The old way, “shutting down”, is appropriate if I am in a situation with a violent person and my life/other’s lives are in danger.

(6) If I can’t think of what to do, I take a deep breath and count to ten.

(7) Stop teasing authority figure. I notice my family communicates by breaking rules.

(8) Learn the rules; comply with the rules; if I don’t like the rules, don’t play the game. Know the positive intention of compliance.

(9) When I resolve an “anger” situation positively (in which I previously shut down), I bring this immense joy home to share with my family.

I formerly believe rocks responses are predetermined. Rather, new resources are arrived at through intelligent discussion and debate among the tribe members, who arrive at solutions aimed at dealing specifically with “anger” situations I mention.

I am deeply thankful to all my tribe members for devoting several hours to help me with the process. Your attention to detail, focus and caring is wonderful. It gives me strength and great joy to hear responses from you describing how my rocks process directly relates to a problem they have, and helps them. I can say for sure from observing others’ rocks processes, as Ed says, experiencing these issues as a tribe “elevates everyone in the room.”


Thank you for sharing your process.

Tuesday, April 14, 2009


Mom  Likes to Paint

Chief Ed:

Following are my report from 4/09/09 IV meetings:

At the beginning of meeting, Ed starts to talk about the importance of noticing if you are trying to be a fixer. Ed explains that we signed up for this technology with our own will and we have lots of tools to improve ourselves, however you are going to go through changes and people around you will start noticing changes.


Best to deal with this situation is to respond to your friends and family that you've decided to behave differently and thank them for noticing and accepting the change in behavior instead of trying to explain to them the technology and how your loved ones could experience the same.


This action basically describes you trying to be a fixer and will bring up lots of unnecessary drama and sometimes ruin a positive evolving relationships. The bottom line is people will emerge to change their behavior if they want to and you cannot fix them. Focus on your issues and let the others enjoy their sovereignty and respect their boundaries.

I notice that I do that a lot with my mother and finds out that it was basically back firing me and basically gives her lot to worry about. She called twice since 4/09/09 and I just accepted her and she seems to be more optimistic.


Last time she told me she was in deep pain when she is painting and I told her painting might not be best for her right now, she rebelled saying that painting is her passion and so on. This time when she called I said how is painting going for her and she told me she is very excited about painting despite her pain. I said that is great and wish her the best and she told me she hopes to have show in NYC one day. I said I will be very excited about that. I felt positive energy in her voice and hopefully that is helping her. Few days ago she sent me picture of her. She is recovering from serious illness and on the picture she did not look too good. I just wanted to wish her well. I did not feel any resistance on my part. I feel OK. I am trying to smile and enjoy this feeling. I love my mother dearly in a very different way now. I think she understands me and she like my feeling.

Thank you for all your sharing. As usual I don't understand many things that goes on during the process but I feel fine with that and I trust and feel that positive change is evolving within me and many other AHA's to come. Thank your for reading my email. Thank you for everything.


Thank you for sharing your process.




A Hobby ...




... can Turn Into ...




a Career.












Tuesday, April 14, 2009


Turning on the Flow


Dear Ed,

I observe that as I practice more TTP I can experience more feelings and they flow more spontaneously. It seems to me that the faucet is opened and many other feelings may flow.

- Some days ago while jogging I think of a discussion with a friend (“I will have a yearly return of +217%”): don't ask me why not 219 or 211%. As I think about it I start laughing. The laugh gets more intensive and louder. It turns frantic. I keep “on running while I laugh like a madman. I realize that the laughing is the form for “I am greedy - I have a huge return”. As I stop laughing I can laugh about my expectation (“why not +217% per day, or even per minute!”). I realize that I cannot plan a return: I follow a strategy, I pull the trigger, I control risk and at the end of the year have a certain return. It is easy. However, I still have some problems: I use a trend following system, but what to trade? Stocks, options, leveraged instruments, CFDs? I keep wondering.

- Later I go to bed and remember the 217%. I start laughing again. I keep on laughing until the form ends; then, I feel increasing tension in my back and fists. I increase the tension until it turns joyful, further, further, and then it disappears. Then, I KNOW: I buy the instruments which correspond to my strategy: it can be an option in some market circumstances, a leveraged instrument in others, no CFDs (I lack the experience and do not need the fear of a margin call).

- I know that it is DIM, but it happens spontaneously more and more frequently.

Thank you for sharing your process.

Monday, April 13, 2009






I feel angry, betrayed and abandoned in my professional relationships.


I worked for a major investment provider for over eight years. Our entire department was liquidated in January. I gave this firm everything they asked. I watched as they promoted 20-30 something's with little experience into external positions (I am 48). I supported THEIR success. I accepted advice such as "you have to dumb it down". Once my younger external partner advised, "dummy it down."


I feel anger at myself for buying into the company store concept. I knew better. I worked for as an independent contractor for 20 years before signing up as a corporate soldier. I felt superior sales production was a plus. In the corporate world, success breeds resentment from associates trying to keep up, fear from superiors that maybe you might know more than them.


I am mad at the corporate process, not my former associates and managers. I feel sorry that some are still trapped in the machine. I feel betrayal, no good deed(s) goes unpunished!


I struggle to build business relationships with professional money managers. I can add value to their equity executions through anonymity, integrity, and swift accurate execution of their orders. I feel lost. I feel better after writing FAQ.


Next Up: My personal relationship with my wife of 21 years, my friends and six children improves as I learn patience and acceptance in trend trading. I feel content. I let go of fixing and grasp patient, active listening.

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

Monday, April 13, 2009


Santiago Tribe



I wish to start a Tribe in Chile.








Monday, April 13, 2009


Wants a Hint



I wrote a program which takes long positions when a stock breakouts with high volume and increase in price. I tested the system with the following parameters:

* ATR period – 5, 10, 15 and 20 day
* ATR multiples
* Volume multiples compared to 50-day moving average and
* Percentage increase in price at the time of breakout

I tested the system from 2000 to 2008 with a random selection of stocks risking 1% on each trade with a modest capital of 200k. For each year, I got different parameter set that resulted in high expectancy. The question is how to nail down a parameter set to start using the system?

I am also testing the system from 1991 to 2000 to see any similarities. If you can give me some hints to find the optimal parameter set that would be fantastic.

Hint for finding optimal parameter set: back-testing.

Monday, April 13, 2009





My English language description of the pendulum is off. I keep thinking about it. I am looking at the velocity as a stock that fills up from the flow of the accumulation of the accelerations, and that the friction is like a hole in a leaky bucket of that stock. The fuller the bucket (the more velocity there is), the faster the bucket leaks (the greater the friction).
I guess I could use some hints on how to better describe this in English.



Congratulations for sticking with this.

Your Vensim / Stella model is a very accurate description of the pendulum.

It demonstrates the equivalence of two aspects of the pendulum: (1) the intention (structure) and (2) the result (behavior).

Note that the simulation continues to stay in the ever-evolving moment of now (or in a very thin dt) as it "explains" the solution.

Your explanation, and many others, stray from the discipline of "staying in the now."

They grab this and that event from different parts of the cycle (different dt's) and try to force them into the past-cause ==> future-effect form.

You might consider emulating Vensim / Stella in your narrative.

Monday, April 13, 2009


Wants to Meet


Mr. Seykota,

I have been an aspiring trader for 3 years now. I am 25 years old have I have had both great success and a few adverse "learning experiences" as a trader. I would like to meet with you and buy you a coffee or lunch one day a your convenience. I can travel to North Lake Tahoe anytime. I would like to learn more about your trading style and what has made you successful over the years. My experience began with options then switched to S&P outrights, then to yield curve arbitrage. My goal is to become a better outright trader and stay away from arbitrage strategies. I look forward to hearing back from you soon as this is very important to me.
Best Regards,

Perhaps you can put some of your questions in an email and send them to FAQ.


Monday, April 13, 2009


Bumper Sticker Process

Fixing California



As I continue to work on my bumper sticker, I notice two patterns in my career. First, the problems I tackle are typically quite small. I fail many job interviews with a diagnosis of "overqualified." I want to move up in my expectations of what I can achieve. Second, I often develop a solution first and then go looking for a problem for it. I want to stop cold-calling and instead find people who are already looking for help solving a problem they know exists.

At our last meeting, I solicit feedback for an experimental bumper sticker that reads, "I Solve Big Problems."

Among the feedback I receive, Ed names two big problems: (1) balancing California state budget and (2) finding gainful employment for me.

I wonder if Ed thinks these two are equally difficult.

I then observe that balancing a state budget is not a very difficult task, if you are willing to. The state can reduce its expenditures if it stops owning losing businesses, like CalTrain or its school system. These businesses lose money because they provide inferior service at inflated price. The state can also reduce its expenditures if it limits what it regulates. Underage smoking, drinking and driving; substance scheduling; gun control; marriage licensing; minimum wage; immigration; auto insurance--all cost money to enforce, and are, IMHO, none of the state's business.

I notice excitement as I make a list of things the state can stop owning or regulating. I wonder who might be the people who are looking to solve this problem and how I might get in touch with them.

I also notice, with some surprise, that I am, apparently, more willing to consider solving the California budget problem then solving the problem of my own employment.

Thank you for sharing your process.

Sunday, April 12, 2009


Path Leads Here


Hello Mr. Seykota


I know that we're all on separate journeys, but the one that I've been on has been pretty out there. I know your time is valuable so I'll be to the point. I've been trading professionally for the last 10 years, but the last 3 years this intense focus/search has been on trading for myself.


I have heard of you several times through out the years, market wizards, Internet, turtle trader, my friend. Everything that I've been lead to has lead me to you. The reason I write you this weekend alone there were 5 times different occasions your name has come up. And it keeps coming up, I feel like something's reaching out and grabbing me and putting me in your direction.


I know it sounds crazy but I'm being honest. I don't know how or why I just know it. Something lead me to [Name] and now I'm friends with the man, and he's changed my life drastically. I'm writing you to know if there is any possible way to join your trading tribe, to become a member, any mentoring program, anyway to interact with you on any basis? I'm asking only for one shot one chance, because I completely understand the magnitude of the opportunity.


I read your site and the process, I have emailed the Chicago chapters but I'm not sure if these people still work with you. If there's anyway I can be a part of what you have going on please let me know. Thank you for your time and consideration.

You might like to check out the upcoming Workshop.

Sunday, April 12, 2009


10 != 100 


Hi Ed,


I am doing paper trading, using only your Support and Resistance method. For $10,000 that I can afford to start, it will be very slow process. I think, optimal start amount is about $100,000. Do you know any way to improve your method or to adjust for the small start money, like mine?


No additional research was done since I completed the two projects, Exponential and Support & Resistance Projects. If you have any idea around these projects, I can do research. Reading your book. Too complicated for me. But did not give up yet. So, this process also go slow.

If you demonstrate proficiency with a $100,000 system, $100,000 is likely to appear.

The same goes for $100,000,000.

Sunday, April 12, 2009

Road Maps


Hi Ed,

I write you as follow up to my email of March 12th and commitment to complete Road Maps prior to the workshop. I have completed the Road Maps readings on the System Dynamics site except the work from the required books which I ordered and have yet to receive. I find the work challenging but also enjoy it. I receive many insights and Aha's during the whole process. I attach some of the models I have built as part of the readings and a brief overview of systems principles as they are explained in each chapter of Road

As further work I intend to return to the Road Maps readings and develop a glossary of the Key Terms and Concepts as laid out at the end of each chapter. I continue work on additional articles on Exponential Smoothing and Exponential Material Delays from the Road Map series. I am interested in applying these concepts along with other I have learnt from road Maps to model markets behavior. I intend to work on this some more as I am still at the early stages of developing systems on my own.

I look forward to the Workshop.

Links to articles mentioned:



Thank you for sharing your process.

Sunday, April 12, 2009

Evolving Relationship Bumper Sticker -

Pretty Lady Almost Attacks



Hello everyone. I feel complete with my relationship bumper sticker. Instead of going on dates I will get involved with activities or organization where I could meet her and develop friendship and intimacy while enjoying the activities. The measurement will starts today.


After all it's fun. I am planning to join local acting class or group/universities and also I am planning to find some voluntary work with animal organization. I love animals and sharing my feeling through acting. I just came from walking about 40 minutes and enjoyed it very much. A huge dog with pretty lady almost attacked me but I managed to survive with a laugh!

Thank you for sharing your process.

Sunday, April 12, 2009


Lake Ratio
Hi Ed,

Thanks a lot for your answer.

I’m sorry because I think that I formulate my question wrongly.

As my paper is to be published in a scientific journal, only references from other journals or congresses are admitted. A link to a website is unfortunately not considered.

So my question is: did you introduce the Lake ratio in a scientific paper, or did you present it during a congress?

To my knowledge, the Lake Ratio appears in no scientific journals and has no other scientific credential.

It does, however, have some peculiar features.

Namely, it makes intuitive sense, it has a simple graphical representation and it underscores the necessity for risk control.

You might note that despite the prevalence
of hundreds of "risk" metrics such as appear in your book, the money management industry continues to demonstrate a lack of intuitive sense for risk control.

This may reflect a preference for arcane intellectual metrics over simple emotional ones.

All the best to you and for your researches and publications.

Saturday, April 11, 2009

Father-Son Bonding



I struggle with a pattern in my relationship with my father. I tell him about something that happens in my life, or something that I do, and he comes back with advice on how to make it better. I end up feeling that my father disapproves of everything I do.

I receive one of these here-is-how-I-would-make-it-better emails before I leave for this week's IVTT meeting. On my way to Nevada, I try to find its positive intention. I try to think of something I can thank my father for in response.

I have an AHA. My father frames much of his communication with me as advice. If he wants to share with me a reflection on his experience, or a feeling, or a thought, he never does that directly. He waits for me to tell him something about me, then presents what he wants to share as a lesson for me on how to improve what I describe.

After I return home from Nevada, I email my father thanking him for sharing his inner world with me. I tell him how much I enjoy receiving displays of his creativity and originality. I tell him that I see a real, live human behind them.

My father calls me today to thank me for my letter. He says it touched him deeply. I notice a difference in his voice. He sounds softer and more pensive. He shares his feeling with me rather then dispensing

Thank you for sharing your process.




Father-Son Bonding




Father-Son Bonding


Clip: http://www.mopo.ca/uploaded_images/





Saturday, April 11, 2009


Hi Ed,

I am still adjusting from my Rocks process; I screamed in the middle of the night feeling anger at level I never felt before, and then I cracked up laughing. I am writing a full report for FAQ.

Thank you for sharing your process.


Rapid emotional re-balancing is typical of the Rocks Process.




Some Know


and appreciate


the positive intention


of screaming.



Clip: http://www.printedclothing.com/contents/


Saturday, April 11, 2009


Little Miss Quote

Ed says, "If you can come up with even one single counter-example - that is, one teeny-weenie thing you can do in the past or future, please document it with a snapshot and send it to FAQ." (FAQ 3/23/09)

Hi Ed,

Thanks for the response on FAQ. I think about it and not surprisingly, I cannot (yet) have a counter-example. More and more I can see how the past and future doesn't "exist", or exist merely as a concept in Now, which is the only time dimension we can be.

However, I am not sure if I can agree with your argument. You seem to suggest that since no one can ever go to the past (or future) to do something, evidently that the past (or future) doesn't really exist.

If so, then what about say the Andromeda Galaxy. It is the nearest spiral galaxy to our Milky Way, although still 2.5 million light years  away. No one has ever been to the Andromeda Galaxy and do something. No one can document one teeny-weenie thing he can do in Andromeda. Under your deduction, then Andromeda doesn't exist? Wouldn't it be similar to that a thousand years ago, if someone brings up the North Pole or South Pole, they didn't "exist" because no one has ever gone there, but yet we now know that they always exist for as long as the Earth exists?

(I am not arguing whether past and future "exist." I am just not sure if I can conclude their non-existence based on the argument you provide)


You seem to be characterizing my invitation to submit a snapshot - as an argument.


You might consider taking your feelings about <people who misquote others> To Tribe.





Friday, April 10, 2009



I live in [State] and am pleased to announce that summer has almost arrived. We know because we can see the deer moving around. Yep, won't be long now.



Thank you for the weather report.

Thursday, April 9, 2009

Description of Pendulum 2


The initial position of the pendulum is negative 0.785425 radians (45 degrees) from vertical.
I release the pendulum and it accelerates due to gravity pulling it towards the center of the earth at 9.78438 meters per second per second along a path described the arc of its length. 9.78438 meters per second per second represents the acceleration of gravity in Austin Texas accounting for the latitude and altitude.

The friction of the pivot and the air resistance acts to decrease the velocity of the pendulum.

The acceleration of the pendulum increases as it is moves towards the center of the earth. The acceleration of the pendulum decreases as it moves away from the center of the earth.

At the point where the sum of the acceleration of gravity as the pendulum moves away from the center of the earth equals to the sum of the acceleration of gravity as the pendulum moves towards the center of the earth minus the friction, the velocity of the pendulum becomes zero (and it stops) and reverses it course.

The pendulum again begins accelerating towards the center of the earth along the arc of its length and continues oscillating in the same manner until the its position decays to a point where the effect of acceleration of gravity will not act on the pendulum to move it along its arc.

You have various conceptual errors in your description.

Thursday, April 9, 2009

Incorrigible Person

Dear Ed,

a new member of our Tribe is an incorrigible person. Her husband is a member of our Tribe.


I don't know if she joins us with conviction, or just to show her husband that she is willing to work. She takes the hot seat three times and completes several forms. However, after some 2 months, she reports no changes and no progress in her life.


This is novel in our very intense Tribe. Furthermore, she manages my own hot seat in two opportunities. To my surprise, I also do not have ahas or experience changes after my own hot seats. I re-read the chapter in your book, but I am still wondering. In your experience, do incorrigible persons also profit from TTP? And can they inhibit the progress of other Tribe members when managing processes?

Incorrigibility is a property someone assigns to another person.


You might be attracting and indulging this person to participate in your drama.

Thursday, April 9, 2009


Losing a Job


I get more clarity on my intentions and results about losing my job. As I contemplate job-search strategies, I find that I really don't want to find work in the next month or two. I want to support my wife in the final weeks of pregnancy, and I want to be with the baby when she arrives.

I speak to a photographer about business opportunities around my mosaic technology. He shows little interest but says that he is looking to get into maternity photography and wants to offer my wife a free shoot now and another with the baby, as a way to build up his portfolio. We can't stop talking about the great experience we have at his studio.

Thank you for sharing your process.

Wednesday, April 8, 2009


Jumping Rope Video



What you are about to see is a performance at the Naval Academy by 4th, 5th, 6th, 7th, and 8th graders from schools in Toledo, Ohio. They entertain at half-time at such events as basketball games.

Man, they are something!


You are in for a real treat!


Thank you for the clip.

Tuesday, April 7, 2009

IVTT 4th Week FAQ Post

Logging Behaviours


I share the mini-AHA that I have better experience of personal boundaries with my spouse, compared to first IVTT meeting.

I share the experience of logging my negative behaviors. I derive several indirect benefits from this recording activity (better sleep, better caffeine control, etc.).

I enjoy the extended discussion of "cause + effect vs. intention = result". The intention is the result. Also, all feelings have a positive intention. Fear relates to risk control and anger relates to boundary management.

We talk about "because, because, because" which is all about causality (and effect). I recognize my own tendency to search for reasons and explanations. Sometimes this search gets in the way of right livelihood.

We talk about taking judgment off the feelings. Examine the feeling, find something you can learn from it.

We observe a master / slave type exercise where one tribe member is on all fours and the other presses on his back with two hands. The master says, "I own you" and the slave says "Get off my back". I recall to myself a comment made to my spouse, "Take your foot off my throat."

Finally, a member on the hot seat has an emotional experience describing his relationship with his father. This member has a foreign accent with an American regional dialect. I observe that when he breaks through, his foreign accent seems to disappear and he sounds like an American with the regional dialect only. He sounds more assertive and confident this way.

Thank you for sharing your process.

Tuesday, April 7, 2009

Pendulum Model - Balloons and Tears

Dear IVTT members,

I tried to construct the pendulum model. I tried Vensim first, it did not work, I thought it is because Vensim is not the best software, so I went and bought Stella for almost $2000, which was very painful to do, because i am trying to budget lately, and I did not expect to spend that much this month.


I had to find out that the problem is not with the software, but my abilities. This made me twice as mad, that instead of trying I threw money at the problem. I tend to do that at other areas of my life too. I spent countless hours of trying to construct first a pendulum without the drag, just to see if I can do it. I seemingly put it together right, entered all the equations, but the simulation always failed. I got a flat line a few times for the position/velocity-time graph.

Once my pendulum went up continuously like a birthday balloon. The final one I could come up with I attached, with the equations.

I was so frustrated, I cannot even describe, I was ready to cry, and I broke a few things, a stapler, and a water bottle. I have cool it for now, and I will see what I can do tomorrow.

Thank you for sharing your process.



Tantrum Yoga Postures


such as:

stopping elephant;

 wriggling fish;

wet noodle;

kicking cat;

screaming banshee;

and calm before the storm


are largely




Clip: www.babble.com

Tuesday, April 7, 2009



Hi Ed

I wonder if you might like this little program?



Thank you for the clip.

Monday, April 6, 2009

Under Water Sculpture



Thank you for the clip.

Sunday, April 5, 2009

Looking for Love


Chief Ed:

Enclosed is the measurement and process for my bumper sticker. Most consistent with perfect flow is my weight reduction bumper sticker. " I weigh 210 lbs by July 09" Unfortunately the software I been using is on my I phone I am unable to show it to you for now.


The Road Map is significant improvement however Friday and Saturday was disrupted with my medication toward my " I'm in love with my girlfriend" Bumper sticker. Matter fact it's have dissipated and I don't feel motivated. Instead I experienced moderate medication in relationship with woman and love.


I am thinking of going to dating event on Tuesday. I feel I am forcing this love issue and at the same time starting to feel resistance to this bumper sticker. On Monday, March 16, 2009 FAQ Ed suggest "You might consider coming up with some detail about what you mean by love."


I guess I been avoiding the issue. I don't feel like detailing out the meaning of Love. I do like to fall in Love but may be its too vulnerable for me to balance with my commitment to my right livelihood. I love my work and its getting better and better. I feel not confident to balance my life with true love relationship now.


I remember last time I was in relationship, I put my full energy in to that love and my right livelihood fell apart.  just can't see myself balancing the two together. I am certain that I would go crazy and thinking about her 24/7 and throw everything on a side. Funny thing is I guess I enjoy being vulnerable and devoting everything toward her and forgeting about everything else.


At the same time my intention is to keep the momentum going on for right livlihood. As you can see from the measurement the Love bumper sticker come to a stand still. It's still short time. I feel I am making progress in little interactions with woman and feel I am connected to them more and more but not in deep level. Hopefully I can come up with a solution for this. Detailing out meaning of love is very difficult.

Details of Love (In this case with your girlfriend)
1. Protect and Care
2. Support her to manifest her right livelihood
3. Spend weekend together
4. Physical Intimacy
5. Listen to her

Thanks for reading.

Thank you for sharing your process.

Sunday, April 5, 2009

Sick to my Stomach


As I was studying, my wife called to me that supper was ready. As I turned around to go to the table I felt an uneasiness in my stomach. I noticed that this was a familiar sick feeling I am used to and remembered that this is the exact same feeling I had when I was young and my parents made me eat everything on my plate before I could leave the table.


I took this feeling to my tribe for a hot seat and got into this feeling of sick in my stomach. I recalled being at the table eating everything I wanted then eating even more than I wanted, feeling bloated, full enough to pop, and just overall sick. I would stare at the plate wondering how I could ever finish all that food that was left and especially the squash.


I did not like squash, I didn't like the taste, I did not like the texture, and feeling full and bloated all ready just the sight of squash made me even more noxious. I was told how I had to eat it because there was starving kids in China that did not have anything. I did not care and even felt bad because I didn't care about them, just my overall feeling of misery.


I was a skinny kid when I was a boy but now am at least 25 pounds too heavy. I have tried to loose weight but have been stuck around the same weight for years. The ah ha I had on the hot seat was although I have never liked the sick full feeling from eating too much that it is exactly what I do. I go to the lunch buffet and eat until I am full and then sit there picking at food until I am so full I can barely get out of the chair.


I eat foods that are not in my best interest, and crave greasy foods that leave me feeling sick to my stomach. Since the hot seat I have been OK leaving food on the plate. I don't eat as much and find myself actually thinking about what I am putting in my body. Since my involvement in TTP I find more and more things that I do unconsciously without thought that do not support me and after examination in my tribe these just seem fall away. I no longer have a need
for them.


Thanks Ed

Thank you for sharing your process.




Our Feelings


may figure as strongly

as our minds


in matters of eating

and in life in general.



Clip: http://www.tummyachehelp.net/wp-content/


Sunday, April 5, 2009


Chart Server Down

Most Wise Master,

Just FYI the Stock tabs on the chart page are not working. Thank you for all your assistance.

Thank you.


I am in process of recovering from a free and automatic update and "upgrade" of my Vista operating system.

Saturday, April 4, 2009




I just read your book and it is a AHA for me. I have a question though. Have you tried EFT with your tribe process? (EFT is Emotional Freedom Therapy) The friend who loaned me the book and I are starting a tribe.


One of the precepts of EFT is that some feelings are good and others are bad.

Saturday, April 4, 2009


Equilibrium Investing FAQ

Re: your Sunday, March 29, 2009

Hi Ed !

I am thinking about your list of processes: micro-organism growth in nutrient broth, nuclear reaction, compound interest, etc, which can be displayed as parabolic trend charts, and which resemble the recent growth of US money supply and growth of US debt.

So the most important economic question on the planet now is: What do those charts of known parabolic trends look like after the parabola? I believe that, with the possible exception of compound interest, they each spike down.

As i visualize this more, i see it is not the number of viral bodies which spike down. It is the fact that they kill their host, and so die themselves, and the toxins they emit stop. Similarly, with dollar creation, the number of dollars still exists, but the value is what spikes down.

Perhaps this question is only another attempt to see the future, rather than trading the present.

best regards,

Thank you for sharing your insight.


The growth process is essentially exponential (not the same as parabolic).


For awhile, positive feedback dominates.  As the system evolves, an outer, negative feedback loop comes to dominate.

Saturday, April 4, 2009


Video - Questions about Policy



Hi Ed - I found it again... Hope it works this time. Better watch it quick, before the remove it again. After the first 1/3, it gets really super.


Thank you for the clip.

Friday, April 3, 2009

Do I Need Changing ?

Tutor ED:

Sorry , i didn't got any feedback for my last question as below, no comments?

You might consider taking your feelings about <having to be perfect> to Tribe.

Friday, April 3, 2009

Quantum Physics - Video


Just wanted to give you an update, and I am kicking ass. The system dynamics is all too cool, look forward to conference.


Thank you for the clip>


Here's one on Sodium Acetate:




Friday, April 3, 2009






I first describe the pendulum without friction and then introduce friction into the model. For purposes of this description, a pendulum is a mass on the end of a mass-less rod that can swing freely in full circle around a pivot.


I move the mass from its stable equilibrium position (the position where the sum of all forces is equal to zero) to an angle of 45 degrees. When I release the mass, the mass accelerates due to the effect of gravity along an arc (described by the distance from the pivot point to the center of gravity of the mass) towards the stable equilibrium position.


As the mass accelerates along the arc its momentum causes it to overshoot the stable equilibrium position until the effect of gravity pulling it back towards the stable equilibrium position overcomes the force of the momentum at -45 degrees, at which point it stops and begins a trip back along the arc towards the stable equilibrium position.


Once again as the mass accelerates along the arc its momentum causes it to overshoot the stable equilibrium position and return to the original angle position of 45 degrees where it stops.


The mass then continues to oscillate around the stable equilibrium position between +/- 45%. At least this is what happens when there is no friction in the model. When I introduce friction (a combination of friction at the pivot point and air resistance resulting from the movement of the mass through air) that is proportional to the velocity of the mass, the mass overshoots the stable equilibrium position but reverses course at a point less far along the arc than the original angle position, and the oscillation of the mass then continues to decay at a geometric rate until the sum of all forces are once again equal to zero and the mass resumes the stable equilibrium position.

I notice you using cause and effect to link events that do not occur in the same part of the cycle.


Hint: Your system dynamics model does not operate this way.

Friday, April 3, 2009

Video - Women in Art



This video takes my breath away! Amazing!


Thank you for the clip.

Friday, April 3, 2009


Equations Beget Equations

Hi Ed,

I thought you may find this interesting: scientists using A.I. to get computers to self-discover physics laws...by studying pendulum



It's also interesting to me to see how things attract. I stumble on this link through a link on Gmail, which provides it by mining my email and automatically search for key words that repeat often (in this case, likely "pendulum"). So even unknowingly, things that we put our minds to, attract even more of them. It seems that is one of the premises of the Bumper Sticker Process, that clarifying our intention magnetizes and draws us to it.


Thank you for the clip.

Thursday, April 2, 2009

Experiments in Weight Loss


I now engage in a system of weight loss, where my intention is to allow my feelings to be experienced while regulating my food intake. I find food is a vehicle that keeps feelings bound up inside. I also find that excessive weight creates additional feelings of stress, which, in turn, requires additional food to further distract and avoid these new feelings, causing a self reinforcing cycle that also is compounding, creating knots within knots.

To break this pattern, I limit my food intake and learn to experience my feelings, including their positive intentions. When I feel stressed, I often go for an hour long walk to the park instead of a walk to the refrigerator. I find by the time I return, much of the feelings dissipate or are gone entirely. I feel my life becomes more organized and productive as a result. I feel more energized and alive as well. So far, my weight loss results in a reduction of many belt sizes. If agreeable, I intend, on a regular basis, to provide updates on my progress and invite any suggestions or comments from you or your Tribe readers.

Thank you for sharing your process.

Thursday, April 2, 2009

Pendulum - Different Measurements

Hi Ed,

As I am trying to put the pendulum model together, I noticed, that based on our measurement the drag is increasing as the amplitude of the swings are decreasing. (the large swing amplitude loss was <75%, whereas the small swing amplitude loss was >85%, after 20 swings.

I repeated the experiment at home, and I got the opposite result: the drag is decreasing as the amplitude is decreasing.

It will complicate the model equations, and our model will show a strange behavior if I go by the measurements we took in IV.

It will be interesting to see.

I am still working on it.


Thursday, April 2, 2009


Chief Ed,

The FAQ response to my earlier send on disequilibrium is focused on trading vs. fading.

My send on disequilibrium is really about individuals, not markets composed of individuals.

Assuming everything adds up to zero strongly supports the idea of [Bliss = Zero Point].

I believe that dis-equilibriums are often perceived as 'opportunities' by entrepreneurs, and traders alike.

For example, assume the natural equilibrium state of human beings is the blissful Zero Point state. (This TTP name is very telling)

Further, define disequilibrium as a difference of potential in the emotional energy balance in any one individual.

My model states that dis-equilibriums attract neutralizing forces, in effect an "agent or conduit, or channel" that helps to vanquish the difference of potential and release the stored energy.

In my view, this difference of potential is what creates and attracts TTP. The difference of potential or "demand" for TTP is created by incompetent parenting, lack of understanding, lack of attention, etc. The result is disequilibrium in the forms of emotional immaturity, emotional sickness and "stuckness".

TTP is a neutralizer of the difference of potential , which entrains an equilibrium (blissful, "Zero Point") state in individuals.

You yourself say:

Ed's ultimate intention for The Trading Tribe

and for TTP

is for people to experience it,

and for it to disappear

and become just another passing AHA.

Thank you for sharing your views.

Thursday, April 2, 2009

Hot Seat Receiving

Chief Ed,

I have a very specific question about TTP Hot Seat receiving.

If the Sender is verbalizing, and it it clear to skilled Receiver that this is engaging CM, what are some of the most effective techniques to disengage Sender's CM and get him back on task, in terms of freely pumping feelings from Fred to CM?

I know from reading FAQ (and some experience) that story-telling occurs early in the Hot Seat experience, and later, some forms of Sender verbalizing do not totally engage CM.

My question refers to the "non-story, late-in-Hot-Seat" verbalizations that engage CM and effectively reduce potential of Hot Seat Sender to get to Zero Point.

Skillful receivers might consider encouraging the sender to go more into verbal expression.

Thursday, April 2, 2009


Dear Ed,

Yesterday, I wake up in the middle of the night overcome by sadness. I feel I mess up my life, I have no skill, no talents, I am not able to support my family, I disappoint myself, and I waste my time with ridiculous dreams of big things and do nothing about it.

The market opens and I'm greeted with an gap through stop-loss and as I note in my trade journal I feel "sadness; failure, loser". I hate this feeling and don't want to keep it around long enough to find it's positive intention. I consciously notice myself shutting down, drifting into "nowhere land"- so much easier that way. I catch myself medicating. I keep the feeling, though I am not able to enjoy it. In fact I really hate it.

Today I feel clearer, yet still shaken by such overwhelmingly strong feelings of sadness and sorrow. I review the systems testing I complete yesterday (where I achieve a MAR of 0.80 over 26 years back-testing, using a combination of TSP's Exponential Averaging and Support / Resistance systems for futures). The tests are correct, not "all wrong - faulty formula" as I scribbled on my notes yesterday.

I have an "aha". Though my career choice is no longer right livelihood, I realize there was a blissful time when I feel right livelihood in it. Right livelihood evolves as I grow.

PS: I notice a left handed friend is taken aback by the term "right livelihood". I think of the Italian word for "left", "sinistra".

Thank you for sharing your process.

Thursday, April 2, 2009

Dear Ed

Following on from my contribution Monday 23rd of March your title Father and Son.

In the link below the title you typed previoius when I think you meant previous. I hate to point these things out but I think you like to know and then change them.

Since the last contribution I leave working for my Dad.

Feelings this brings up:

1. Anger that he doesn't try to stop me and that he can't see what I feel I can see; that he is being used by the people the other two people he employs.

2. Sadness that I'll see less of him in the future, I love a lot of the time we spend together and I miss him already.

3. Guilt that he will have to carry out much of the manual tasks himself with me gone. I tell myself it is his job to replace me if he wishes so I shouldn't feel guilty but I do.

4. Lightness that I am not 'responsible' for the business anymore, to accept it will take the course he intends for it and that it is beyond my control.

5. Fear that I have no income and have to build my own life from scratch.

This coincides with my long term girlfriend leaving her job after accepting she doesn't enjoy it and anticipating that that won't change.

We are worried about our financial short term but strangely not by our financial fate for the longer term. I feel that by defining what we want we are already closer to achieving it.

Below is a brief list that provide the framework for the life I want to lead. My belief is that my long term girlfriend shares these ideals and we will achieve them together.

1. We will work by ourselves for ourselves.

2. We will work from home with an office in the house.

3. We will be able to drop our children (when they come along!) at school and collect them each day if we choose.

4. We will be able to take two weeks away from work at Christmas, one at Easter and three weeks over the summer if we choose.

5. We will only spend 50% of our income.

6. We will not borrow to buy anything other than a house.

7. We will support each other whilst remaining independant.

8. We will not compare what we own to other people.

9. We will build for the long term whilst enjoying the short term.

Now they are down on paper we take steps to realising them. I am trying to find the courage to print them and stick them on the fridge for all to see but for now I feel cautious to make open these feelings to everyone.

Once they are posted I will place a link to them on my 'favourites' to keep me reminded what I have set out to achieve. I fully expect now for other people to overtake me financially and for the first time in years I am OK with it. They are just doing what they want and I am doing what I want. Both are valid choices and we can learn from each other. Maybe freeing myself from the dramas of the past ten years will lead to financial abundance through trading.

On a side issue I don't drink alcohol for six weeks and my depressions eases.

Kind regards and thanks.

Thank you for the catch.


Thank you for sharing your process.

Thursday, April 2, 2009

IVTT Hot Seat

I take the hot seat at IVTT on Thursday. My issue is my relationship with my father whose approval I try, vainly, to win all my life. In particular, my father downplays my achievements and offers irrelevant advice on subjects he understands poorly. Ed notes that my problem lies not so much in my father's unsolicited advice, as in my judgement on the anger I feel about this advice. Ed asks if I'm willing to experience the judgement. I have some difficulty with that. Ed explains his notion of a stack of judges. He asks if I'm willing to experience the judgement on the judgement. A judgement on the judgement on the judgement on the anger feels pretty ridiculous, and I start laughing. Ed asks how I feel about the original judgement, and it seems as ridiculous. So does my father's advice. Puff.

On Saturday my wife and I are getting ready to go to a picnic with friends. We are late, and she complains that I'm dragging my feet. I feel annoyed at her hurrying me. I say, honey, can you hurry me some more? Then it hits me. I actually enjoy being hurried! My mother does that to me when I'm a child, and I marry a woman who does the same thing. The only problem is that I also think it's bad. The judgement disappears. As we drive to the picnic, I keep asking my wife to hurry me some more. I laugh so hard, she asks if I'm hysterical.

By Sunday, our relationship is under stress. My wife wonders if I'm mad. She says she wants to leave me and go back to her home country. I say that I feel great sadness at her decision, but I support her in it. She says IVTT must be some sort of cult, that I must be mocking her and she wants the old me back. I consider calling Ed and asking him to process us over the phone.

By Tuesday things calm down and we find a new level in our relationship. I still laugh and ask her to hurry me up. I notice a new lightness about us. We enjoy our walks in the park more, and we laugh together.

Thank you for sharing your process.



Hurry Up


can be a game for two.



Clip: http://www.hellocrazy.com/reserved/cards/


Wednesday, April 1, 2009

Ponzi Scheme



It looks like you've got at least one associate in the criticism of stimulus packages:





As I understand it, stimulus packages are like trying to cure drug addiction by giving more drugs to the patient.

Whatever I hear some people comparing this to something like or worse than the 30's. I wonder if you've got a Dynamic Feedback System Model simulation to understand the relationship between economic crises, social unrest and wars.

Yes, I have a number of Models that deal with the socio-economic behavior.

Wednesday, April 1, 2009

TTP and the Dentist


I went to my dentist appointment today. I have always experienced intense anxiety from the time I drove to the dentist until I finally was able to walk out the door.


After taking my feelings of fear and anxiety to my tribe a few months ago I noticed today those feeling of anxiety were barely there at all. I felt calm and even enjoyed the conversation and presence of the dentist and her dental assistant. Although a little anxiety was there I felt like it was a healthy apprehension and no longer suffered from my usual "white knuckle" experience.


After the dentist was finished we had a really pleasant conversation while walking to the appointment desk to schedule the next visit and she stayed and we talked for awhile. Before I just got out of there as fast as I could. I felt I connected with them as human beings today and enjoyed my visit. WOW what a difference. Thank

Thank you for sharing your process.




Your Experience ...




... of Being at the Dentist ...




... is Your Experience ...




... of Being at the Dentist

















Wednesday, April 1, 2009

IRS Attorney Speaks and Sings


Anne McKinney is a Knoxville, Tennessee attorney who cut her teeth as an IRS Staff Attorney. She composed and sang this for the attending attorneys at a continuing legal education seminar she taught last Thursday. Many there suggested she take it further. She moved quickly to do so.



Thank you for the link.

Wednesday, April 1, 2009

Scientific Serendipity


Here is an article that I think you may find interesting:



Thank you for the link.

Wednesday, April 1, 2009


Wants a Contact

Good Morning Ed,

After reviewing your recent FAQ posts I saw somebody looking for other traders in the Seattle area. I recently moved up to Seattle and I want to meet new people. Would you mind giving them my email address? Thank you.


I post contact information for people who wish to run Tribes.

I do not otherwise reveal personal information.

Wednesday, April 1, 2009


Leo Buscaglia on Love


Video for you...





Thank you for the link.

Wednesday, April 1, 2009


Bernoulli links


Here's a link to an article on "Bernoulli" Levitation that seems to be similar to your Levitator Table experiment:



Flight without Bernoulli


Chris Waltham's Journal Publications


Waltham home page:

I do not know whether the articles support the radial momentum theory or not.

The articles might provide some leads for you.

Thank you for the links.  I can identify with his material.