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Ed Seykota's FAQ

(formerly: Frequently Appearing Questions)

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December 11 - 20, 2009

 

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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.

 

Contributors Say

(Quotes from Ed in Red)

Ed Says

Sunday, December 20, 2009

 

Maximum Profit


Hi Ed,

I would like to hear your comments on the following assertion.

I assert that the maximum profit a trend follower can make is when all cash is allocated to the strongest trending instrument in the hear and now.


If the trend follower allocates cash to another instrument (the second strongest trending instrument) that instrument will lower net returns.
(While trading two instruments, available trading cash is redistributed among two instruments; thus reducing net returns.)


Allocating additional instruments has the benefit of increasing bliss at the expense of lowering returns.


Heat management has the benefit of avoiding margin calls and flattening portfolio.

The holy grail for a trend follower is to have position(s) in the strongest trending instrument(s) in the here and now.

I am working on methods to select the trading portfolio. Most of the portfolios that my simulations select average about 200 equities.

Merry Christmas!

In the moment of now, nothing moves; we have no trends, no strongest instrument and no profit.

 

We can have an intention to follow a system.

 

 

If You Look Closely at the Holy Grail

 

it has a hole in it.

 

 

 

Clip: http://media.photobucket.com/image/

holy%20grail/vosper/grail.jpg

 

Sunday, December 20, 2009

I commit to telling no more stories about my personal problems.

Assets:             $543,871.82
Liabilities:        $552,143.58
Net:                 -$8,271.76
500oz goal:      $552,250.00

Job applications: 64
Interviews: 1
Offers: 0

You might consider taking your feelings about <getting a job> and <supporting your wife and child> to Tribe.

 

 

 

Arrogance is a Condition

associating with a false sense of entitlement.

 

For example,

you might feel an entitlement

to have a wife and child

without supporting them.

 

 

64:1

 

Intentions = Results

 

 

Clip: http://www.albertsusantio.com/blog/

uploaded_images/prince_art-706226.jpg

 

Saturday, December 19, 2009

 

FAQ Error


Dear Ed,

Your reply to an FAQ on Dec 1st included a picture of a whale shark, which you referred to as a whale. A whale shark is a type of shark, and a fish (in fact, it is the largest fish).....while a whale is a mammal.

Thank you for the catch.

 

The item now stands correctly.

Friday, December 18, 2009

The Dash

Ed,

 

In July 2006, a short 3-minute movie was launched on the Internet called The Dash. Since then, over 40 million people from around the world have watched it; and over 20,000 a day continue to watch it as a result of people passing it along.

The movie has been more successful than anyone could have ever imagined. More importantly, however, it has inspired many, many people to reflect on their lives and ask that all important question, 'Are my priorities where they should be?'

I hope you enjoy this movie and share it with those who are close to you.

How will you live your 'dash'??
 

www.dashpoemmovie.com

 

Thank you for the link.

Friday, December 18, 2009

 

Musical Reindeer

 

Dear Ed,

 

Merry Christmas!

http://www.youtube.com/watch?

v=njm1IkL0w7o&feature=related


 

Thank you for the link.

Friday, December 18, 2009

 

Closing Down


Chief,
 

Following is the closing and liquidation letter to my investment fund partners:

“Due to the very poor investment performance of the partnership in 2009 I have concluded that it is in our best interests to liquidate the partnership effective at the end of the year. I will be making distributions to you by check prior to year-end. Termination will eliminate the ongoing expenses of another year of accounting, tax preparation and administration and allow each partner to make his own investment decisions. Our CPA’s will provide a final audit and tax return.

Our partnership was reasonably successful in accomplishing its objectives through the end of the downturn in the market. After an ineffective start-up in 2007 and the beginning of the bear market, we were profitable in 2008 and early 2009, beating the market by approximately 60% during the downturn. However, for the past nine months I have been much too bearish on the market and it has cost us dearly in missed opportunity by failing to participate in this year’s rally. I attempted several times to short the market at points where I felt that the recovery from last year’s losses had run its course, but each time the market continued higher after a brief setback.

Obviously I have thought a lot about this and tried to analyze what happened. I have come to the realization that the problem lies with me, not the markets, and with my having difficulty tolerating losses even though I understand philosophically that losing is part of investing. Generally, there wasn’t a major problem with stock selection, or timing, or any such portfolio management issues. In fact, our timing was very good earlier this year as evidenced by the fact that after being profitably short the market for the first two months of 2009, I purchased stocks at the virtual inception of the recovery rally on March 5th and again on March 9. But when the market went through a routine retracement at the end of March and again in June-July, I did not tolerate the draw-downs and liquidated our positions.

When you miss a major market move like this, your confidence is damaged and you reach a point where you begin to believe that if you enter the market it will go against you again and you will be facing more losses. This is not the mind-set one must have to be a successful investment manager. We all need personal development to be effective, and right now it isn’t prudent to continue with large amounts of money, either yours or mine.

While failure to succeed is always tough to admit, I am very much appreciative of your trust and am sincerely sorry that I did not meet our expectations.”

If you choose to post this on FAQ, perhaps it will help someone else. Failure happens and it can be an ever-present part of your mind as you wake up, go about your daily life and think about the future and what might have been.

 

Maybe the mind can be trained to only deal with the “now”, but I’m sure it takes time and hard work.

Thank you for sharing your process.

 

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

 

 

 

Get The Essentials Carry Card

Thursday, December 17, 2009

 

Trading System Project


Hi Ed,

Thanks for putting up the exponential average system tutorial. I've matched your final equity for the 150/15 parameters in both Excel and Ruby.

One question. To match the system I needed what I thought was one 'tweak'.

When the system changed from '+' to '-' (or '-' to '+') a signal was given to buy or sell. That's fine. What raised my interest was to get the correct buy or sell price I had to use OHLC data from the next day. How would I know what the next day's prices were if this system was to be used in real time?

Again thanks for making this tutorial publicly available.

You can get a signal after the close on Monday, enter it Tuesday morning and get a fill sometime Tuesday.

Thursday, December 17, 2009

 

Feedback on Trading Tribe Book


Dear Ed,

I have finish reading your book and I am ready to start an intentional community in my area.
 

Before reading your book, I have feelings of wanting to ask Ed a lot of questions. Now, the feelings disappear and I know what I want to do.
 

Thank you for sharing with us your wonderful book.
 

It is my turn to share. Cheers !

Thank you for your support.

Wednesday, December 16, 2009

 

Moving Forward

Dear Ed and Tribe,

Since my previous report I work on the following to move myself towards my big wave:

1. I work towards finalizing corporate documents, pro-forma financials with my wife and support group.

2. I focus most of my time and efforts on system development, testing and optimization.

3. I speak to various people about my plans. I notice that my plans are well received.

I plan to arrange meetings as soon as I return back home.

4. My coding/programming skills improve considerably. I am happy about this.

5. I work with my wife to document our duties and responsibilities in the business. We work on being clear with each other from the beginning. I appreciate support members comments that highlight the importance of this.

Next Steps:

1. I continue system development and optimization and research.

2. I finalize a system so that I can start managing investors funds in Jan 2010.

3. I improve my programming skills.

4. I meet potential investors and present my product when I return home.

5. I continue to serve and support people that support me.

I notice that many things come together that move me towards right livelihood over the past couple of weeks.

I feel excitement about where I am heading with my life and look forward to 2010 with much anticipation.

Thank you all for your support. I am open to all your comments and feedback.

Thank you for sharing your process.

Wednesday, December 16, 2009

 

Breathwork Weekend Feedback

 

Dear Ed,

 

During my religious upbringing, I develop a belief that wealth leads to death and hell. I recall hearing sermons delivered with conviction about the dangers of gaining the world and losing my soul, and how it’s more difficult for a rich man to enter heaven than for a camel to go through the eye of a needle. I carry fear to keep away from wealth or risk death and hell – and perhaps miss out on a future place called heaven.


Over the last few years, through a process of reading and wondering about it, I reconsider my belief about wealth and other beliefs I hold. I wonder if these things match my sense of reality after all. I come to change my beliefs including the one that wealth is dangerous. I consciously come to accept wealth, and become open to receive it and I prosper.


However, I sense that some "old programs" in Fred, in conflict with my new beliefs, seem to be influencing me subconsciously - below the surface. I sense these "old programs" seem to
be impeding my ability to acquire wealth and especially to accept it peacefully, and without
conflict.


I take my conflict with “fear of wealth” into the Breathwork process.


In the pre-breathing process, tribe members help me to get in touch with the feeling by enacting a role play. One tribe member plays a preacher, preaching the “message” to me. I go into the feeling of fear and a form of tightening over into a ball while sitting in my chair with my hands clinched together in my face braced with anguish and fear. I anchor to this, memorize the form and feeling as my “bus” to take into the breathing process.


In the breathing process, I enter a state that is free from the influence of conscious mind. I let go of it’s guard over my being. In this state, I remember my “bus” and begin to explore it by deeply experiencing the feelings of fear, death and hell associated with wealth. At first I don’t like it at all, it’s scary and unpleasant, but I stick with it as tribe members drum in support and
music plays. I really go into it. I go after feeling it as intensely as I possibly can. I learn to fully experience it, then to enjoy it, then to except it and embrace it. I begin to really like it, I want more of this feeling, it’s awesome, it’s powerful - then I conclude - it’s just a feeling and it dissolves.


At this point, I get the insight that associating wealth with death and hell is absurd. It’s laughable, and I laugh deeply. I realize what a crazy belief this is. It seems concocted and so untrue. I scream deeply from my chest, “it’s a lie”. I repeat this over and over. I absorb this, then get peaceful, and go on to other feelings and experiences.


During the process, I experience whatever feelings come up. I become a baby being born, a
struggler, a pointer, a dancer, a crawler, a swimmer, I emerge, I get angry, I cry, I laugh, I
explore my face with my fingers with my eyes closed as if discovering who I am for the first
time. I weep as I meet myself at a deep level. I get peaceful and rest.


I emerge from the process, calm and peaceful. I draw a picture of an energy source connecting with my being in the center. I feel deep connection to source. I sense wonder, and that I’m part of something much bigger than just me. I feel glad to be part of the whole that’s too large for me to fully comprehend. I’m content to just be here in the now. I feel connection to the Tribe. I sense harmony between my conscious mind and Fred regarding wealth. The conflict is gone.


I’m grateful to the entire Tribe for your support and to Ed for sharing the Breathwork technology.

 

Thank you.
 

I am experiencing ongoing growth and change as a result of this work.

Thank you for sharing your process.

Wednesday, December 16, 2009

 

Following the Gold

 

Dear Ed,


Here is an interesting fact I ran across in a Bloomberg article that leads credence to the idea that governments have been converting assets from private to public ownership:

"Governments, led by the U.S., Germany, Italy and France, hold about a combined 29,600 tons, according to data from the World Gold Council. Reserves expanded from 700 tons in 1870 to 38,000 tons in the 1960s, the data show."

Trend Traders follow the price, not the location of the commodity.

You might consider taking your feelings about <who owns the gold> and <figuring out the price> to Tribe.

Tuesday, December 15, 2009

 

Portland Tribe

Ed,


My application for a TT in Portland is attached. I am excited by the opportunity to start a Tribe. I feel I can help people with their processes and enjoy having a strong Tribe near by.

 

Welcome

Portland

Oregon

 

Tuesday, December 15, 2009

 

Wants To Know More About a Contributor

Ed,



During the TT Workshop, you spoke about a [person] who is having a lot of success with the Trading Tribe structure working with his patients.

 

Do you have his name or any web links that describe how he is using the TT process and the success he is having?
 

 

FAQ does not ...  publish the identity of contributors

or reveal personal information.  See Ground Rules.

 

Tuesday, December 15, 2009

 

Hardball with Mom

 

Dear Ed,

 

Ed Says:
 

Dreaming About an Ideal Mate (or Trade)

is not quite the same
as assuming ownership in the now.

 

Do you suggest using the Hardball Process?

 

On December 31st, of every year, I usually meet with my mother so as to proclaim our goals and share any feelings that may arise when doing so.

I do not have enough information to help you determine which tool to use.

Tuesday, December 15, 2009

 

Rolling with Despair


Dear Ed and Support Team,

Most of my contracts rolled last week so there is a lot more data in this version. I rolled the contracts on Wednesday and thought I had prepared properly but in fact I had a number of problems. Firstly, my rules actually had me rolling on Thursday but I had mis-counted. I only realized this when I reconciled the system in Mechanica and CSI with my trade tracker over the weekend. I am alarmed that I could make such a simple mistake. Also, when rolling I used two contracts that were for the wrong month and had to close the contracts immediately for small losses. Finally, I realized that I should use the ATRs from the new contracts for my calcs but had prepped based on the maturing contracts.

These mistakes have led me to create some roll-over procedures, including a formal diary system and some new screens to avoid the practical errors. I am viewing the mistakes as a reminder that I need to be diligent, find improvements and pay attention to process. I have managed to avoid the problem with some of my FX contracts being inverted because I discovered my broker also quotes the same way as CSI and the CME.

Prior to rolling and afterwards when entering my stop orders, I had some brief feelings of despair and the thought that "nothing works" and a physical feeling of my stomach falling away and down. I went with these feelings and avoided any tampering with my system but the feelings are familiar to me so I hope to explore them at TTP. I wonder what their positive intention is.

Thank you for your support and I welcome any feedback.

Thank you for sharing your process.

Tuesday, December 15, 2009

 

Going a Little Longer

 

Ed,

I am able to work 28.5 hours on creating my trading system. I should be receiving a home study course on programming Trade-station that I am excited to start implementing. I am able to now implement "if-then" formulas in Excel (very easy). I am still doing a lot of reading.

This week, I notice that I medicate myself by watching TV for about an hour before starting my studies. I feel like I am not dealing with reality. I explore my feelings to see what I am blocking. I realize that I am blocking the fear I have of failure. My thought is everything is going to be great, things are falling into place, but I temporarily create a little dream world in the future that hurts my motivation and production.

 

The rest of the week I really embrace my fear of failure. I welcome it. Late at night, when I feel like calling it quits, I go a little longer.

Thank you for sharing your process.

Monday, December 14, 2009

 

Dodge City


Dear Ed and Support team,

I thank you for your continuing support. Since my last update I do the following:

A) Continue work on my Futures System development, I work on entry, re-entry, exit and position sizing rules. In my study I learn so much about the mechanics of futures trading and I gain clarity about the importance of clear and simple rules.

Entry:
The entry day is day after n-day highest high. I intend to back test n = 60 -180 days


The entry price is highest high of the n-day + skid fraction of 0.6. I intend to test 0.5 - 1.0.

Exit
The system exit a trade a day after n-day lowest low and exit price = n-day lowest low - skid fraction of 0.6. I also intend to test n = 60 - 180 and fractions of n, and skid fraction of 0.5 - 1.0

Equity risk on any trade = 0.5% of equity, intend to test for 0.5 - 1.5


Position size is a function of 3ATR , intend to test for 2 - 5ATR multiple.

I intend to use excel to do the back testing. I notice that this may be labor intensive. I feel pressure in my head as I think about this. Then I realize that if I consistently spend 2 hours a day on it, it may not be long before I finish the work.

B) I attend the first [City] Trading Tribe meeting. It is also my first Trading Tribe experience outside of a workshop setting. Three people turn out. It is remarkable how we all get to understand and relate to each other ad though we are members of the Tribe for years.

 

After exchanging pleasantries, we start the meeting. We begin with drumming and then check in. Then the leader indicates how he intends to run the meeting. Taking turns, we indicate what issues each one of us wants to explore. The leader goes on the hot sit first. I manage the process. The other person goes on the hot sit next and the leader manages the process.

 

Lastly, I go on the hot seat and the leader manages the process. I could not "dodge" the hot sit as I always tend to do. I am glad that I get onto the hot sit with an issue that I feel very strongly about. I know I have a skill in providing clear and direct information about medical procedures to help my clients make appropriate decision. I always want to share that with more people. I acquire all the tools and the materials to put the information out on a website. I have been stuck at this point and every time I try to put the information together in an appropriate format for posting, I just could not do it. Giving all excuses but deep down, I know that I am afraid that I may not do it well or right. Then I have guilt that I am holding back something that may benefit many people.

Getting on the hot sit and going through the process opens the flood gate of insights and now, I am aligning with my fear and guilt feelings, putting the project together and make changes to the site. I am on my way to fulfilling my commitment to get this project up and running and report on my progress by our next meeting. I thank the support of members of the Tribe for their support.

Thank you all for your continuing support and as always, I appreciate your suggestions, critics and any insights you can share.

Thank you for sharing your process.

Monday, December 14, 2009
 

Breathwork Weekend Feedback


Ed,

 

In our first preparatory Tribe meeting on Friday night one member recalls the scene from Indiana Jones where he has to have faith to step out, that the path will be there. Ed says, with a grin, “Well, enjoy your fall.” Yes, yes, enjoy my fall. And I do. This is the story of my amazing experience with Ed and the Tribe on this Breathwork weekend.

For my journey into the other side I champion on behalf of myself and the other members of the Tribe my issue of <surround myself with people who listen to my feelings>. I take with me emotions of anger, hurt, entrapment, and frustration.

We begin Saturday afternoon. The sun is bright, blasting in through Ed’s large living room windows overlooking Lake Tahoe . Loud music is playing, to the beat, beat, beat. I begin breathing, fast, deep. Drumming comes in. I notice a clock but am unsure of the time. There’s clocks all over Ed’s house, none of them right.

I notice numbness in my hands and some frozenness to their position, particularly my left hand. Tetany? I’m under. Still able to think in words. Wondering if I’m doing this right, maybe I’m messing this up. I recall stuff loaded on my bus, wanting to surround myself with people that listen to my feelings. Anger. Hurt. Entrapment. Frustration. There’s not juice in these. What I thought was my issue doesn’t seem to be. Maybe I’m really screwing this up now. But I’m under, way under. The loud music and intense drumming fades out. I dry heave, ‘forcing’ a puke on an empty stomach. The music comes back into my mind, it’s talking to me but can’t make out the words. I curl into a fetal position, I mourn.

I’m under. My mind is playing. I think I can think. My issue doesn’t feel like mine. I’m not sure what I’m doing. I may very well be missing the boat.

The loud music now moves to something softer. The drumming is less intense. I feel a coming down. I feel a physical calm but a mental lack of peace. My issue was not my issue. I had “fun” yet I feel no more wise or integrated. I mess this thing up.

We reconvene in Tribe; members go around the room sharing their experience. There is a glow and a harmony to what the members share, and a release of their issue, complete dissolution in many cases. I feel a distinct absence of this. It’s my turn. I tell Ed and the Tribe I feel I’ve let myself and the Tribe down. I go under, bring my issue, but I do not feel it. I think it is a straw horse. I feel like I mess this up. I feel like a jackass. I feel there’s something wrong with me.

Ed says, isn’t your issue having people who listen to your feelings? Hmmm. My perspective flips. Yes, that is my issue. And I’m telling Tribe that I feel I mess up Breathwork. And this shows me a juicier issue…an issue about messing up, about making mistakes. And about telling others how I feel about messing up and even telling myself how I feel about messing up. I feel a rush of joy and pleasure. I “mess up” Breathwork and am able to share this and enjoy my mistake. It feels great to be able to feel the feeling of “messing up.” It’s okay. I let it flow.

I have to “mess up” Breathwork to succeed in Breathwork. That’s pretty funny. I laugh. I indeed “enjoy my fall.” A fall doesn’t mean I’m a jackass, doesn’t mean there’s something wrong with me. A fall is a fall. Experience the feelings that come up with it and it will be what it is.

Thank you very much, Ed and Tribe.

Thank you for sharing your process.

Monday, December 14, 2009

 

TTP and Promises


Ed,

What is a "promise" in TTP??

I notice that many people in the causal model use "promise" as a medication way to deal with the uncertainty of future. Promise is a tool to control others even though experience of life shows how inefficient it is.

If we spouse the equation "intention = result" and all TTP precepts, we cannot make any promise, can we?

In TTP, we bring our "promises" into the present where they appear as commitments that we carry continually in the moment of now.

Monday, December 14, 2009

 

Breathwork Weekend Feedback

 

Ed,

 


On the drive to Ed’s house I am struck by the beauty of this part of the country, a nice way to start the weekend. I arrive early and I feel excitement to see friends and meet new people. We start by identifying an issue we will each work on.

 

I came with mine and am ready to work on my issue. We work in small groups to get clarity on our issues. I become confused and unsure of what my issue is. After several rounds I find my original issue is not the issue, thanks to the Tribe. We work late into the night, so I am 24 hours with no sleep and feeling it. When we break for rest I am out and sleep sound. The next morning we go for a nice walk through the neighborhood. Then Ed explains the Breathwork process in great detail. We each have an issue that we will explore for the group, mine is “not being willing to experience failure”. We pair up a breather and a sitter and go for it.

I will describe what I experience. I start with deep breaths and then go into deep quick and fast breaths, hyperventilating. As this goes on I get the side effects that Ed describes, most noticeable the locking up of the hands. This state is painful and just seems to go on and on and on. I begin to think “I am going to fail at this” and am starting to not want to fail. Then I remember Ed says to just be willing to experience what ever comes up, just go with it what ever it is. So I decide to be willing to fail and to be stuck at this painful state. Soon after that I cross over into the realm of the subconscious. At this point things are strange and different, but very nice and I really like it. I am communicating but not in words and I think it is with everyone.. I am aware that all those in the room are with me and my family and my friends, living and not living.

 

I get the message that “there is no failure” and I get that over and over and over. Soon I notice it is coming from a sort of circle and from the center of the circle which is a dot. I am moving toward this dot, out through my forehead. I am getting a message that this is what I want and where I want to be and to get here I just experience feelings, experience all of it. If I avoid any, I am moving away, experience all and I get closer.

 

Also, all the feelings seem to be very similar. So I get the feel that this dot is powerful and I want to get close to it and stay with it. I am told that I can return whenever I want and to be willing to experience all and avoid nothing and to go back to the conscious world now. I come back to the conscience world with the sense my issue has no meaning; it is not possible to do. I am just having experiences, I can be willing or I can resist, but I am going to have them.

One thing that is a big part of the process is being a sitter and assisting a breather. I am assisting in the process and the remarkable thing is somehow I feel I am on the journey with him. I am to drum to help him breath as are all the sitters. At first I think how will I know what to do, what if I “fail”, then I get the sense that I need to just go with it and what I and the other drummers do will be what is needed. Later an emotional breather says something like the one thing he will always remember is how we drummed, how great it is and maybe the best he can remember. We did exactly what is needed and it is amazing.

I take hours to fully return to the conscious world and I think all of us feel like we just have a powerful experience. We have a great memorable evening solving puzzles and talking about whatever comes up. I notice I am not able to solve many of the puzzles, I “fail” and I just go with it.

The next day we check out and most report that their issue just has no meaning or is not an issue. Some have more work to do, I guess we all do. Later I find myself with Ed for a one on one talk. It is a chance to speak with Ed; I can ask him about trading, about trend systems, about so many things that before the weekend seem important. Instead all I care about is music; we have a very enjoyable conversation regarding several areas of common interest relating to music, thanks Ed.

I am not sure I understand it, but I seem to be getting chance after chance to experience my issue, Failure. 1st is the puzzles, 2nd is a conversation that is not working. 3rd is a big one, I drive to the airport with a couple of Tribe members and the drive takes longer than we plan, I miss my flight. This is a first for me and my usual response to this kind of stuff is to be totally crazy, stressed and angry. This time I just go with it and relax and am OK with it.

 

Remarkably I book a different flight which allows me to have lunch with the other 2 Tribe members and get home sooner. This sooner flight allows me to help two ladies in the parking lot at my hometown airport who really need a hand. This is stuff is real cool! Also, there is turbulence in flight that I usually want to go away and not feel, this time I feel it and go with it, all is fine.

 

The current thing I notice is with trading. What I used to do is some game that I play around my issue, “failing”. I do trades that make no sense and then resist when they go against me. This week I play the game, however it just seems to have less flavor. I resist at first, then I just go with it and experience some failure, trades go against me and I get out. I see the old game now and I am just not that interested in it.

To some up: I feel different I, feel change, I feel transformation. I feel I may have failed to communicate how fantastic and trans-formative the weekend is. I smile and am willing to experience all of it.

Thank you so much Ed for inviting us to your home and sharing your wisdom.

 

I know it is a great weekend for you also.

Thank you for sharing your process.

Monday, December 14, 2009

 

Prado's Principle


Dear Tribe;

Account (-2%). Barf.
 

The last week has really helped me clarify some of my problems.


I am comfortable with drawdowns. What worries me is that I may be on the wrong path -and I do not understand how to check that. I would like to know where the 20% of your good ideas come from. I need to shake up my trading process.
 

What I am working on Closure and Precision.
Closure is coming to a close- I may be done with almost all of my issues by the end of the year. Of course, by closing one issue another may appear, in different form. I am okay with that because it means progress. Precision is hard- because I almost immediately go into conflict with people I like and work around.


Investing questions. I am trying to improve my habits- I want to re-form myself - so that I am habitually a successful investor.


Please send me the 20% of your best habits that produce 80% of the gain.
 

I feel that if I can isolate and reinforce good habits. I will be much closer to my goal.

Prado's Principle (also, the 80/20 rule) states that 20% of something accounts for 80% of something else.

 

20% of your work accounts for 80% of your income.

 

You can find the 20% of "best habits" on the Essentials Card.  See the link to the Whipsaw Song, above.

 

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

 

 

 

Barfing, Like Trading

 

may start with a gut feel

and then proceeds to observing some of your instruments rising and then falling.

 

 

 

Clip: http://www.augustgames.com/VKR/BARF.GIF

Monday, December 14, 2009

 

The Main Thing


Hello,

I developing automatic trading systems about 2 years for my customers.  Also I creating trading systems myself using strategies from books and articles.


Can I ask what is main thing for create successful trading strategy?
 

You might consider taking your feelings about finding <the main thing> to Tribe.

 

 

Mane

 

 

 

Maine

 

 

 

Main

 

In life as in trading, the main thing is that there is no main thing.

 

 

 

 

Clips:

http://www.whozoo.org/Intro98/verodona/

LionMane010203_598.JPG

http://www.studyzone.org/testprep/ela4/

o/referencesourcep2.cfm

http://westernenergyplanning.com/

images/main_replac_2_slhs.jpg

Sunday, December 13, 2009

 

Owl in Flight - Slow Motion Video

 

Dear Ed,

 

Thought You Might Enjoy This...
A flash from the past confronting Bernoulli.

http://www.flixxy.com/eagle-owl-in-flight.htm

 

Well owl be.

Saturday, December 12, 2009

 

Sad

 

Dear Ed,

An important relationship in my life terminates. I feel sad and depressed.

Assets:              $550,474.26
Liabilities:         $552,143.58
Net:                   -$1,669.32
500oz goal:       $562,000.00

OK.

Saturday, December 12, 2009

 

First Tribe Meeting


Hello Ed,

I am thrilled to tell you about our first Tribe meeting. The Tribe meeting flowed smoothly with a natural rhythm. All of the members worked on feelings they did not like experiencing. I feel a great connection with two complete strangers at my home. The Send and Receive processes allowed us to develop some A-HA moments and facilitated the discovery of positive intentions behind our k-nots.

Personally, I was able to experience the fear of failure and being wrong with the Tribe. I discovered that my habit of avoiding those feelings arose when I took a loss. I previously reacted by refusing to acknowledge I was wrong and constantly re-entered failed trades. I now feel that acknowledging my feelings about being wrong may allow me to respond by staying out of the market, finding safety in being flat, and taking the next trade in harmony with my trading plan. I find that rapid-fire trades taken when I "need to be right" often do not work out as well as the trades that are thoughtfully planned out and I accept the fact that I might be wrong.

As a receiver, the process is very novel to me. I realize how seldom I listen to someone's troubles without offering solutions or rationalizations. It is an empowering experience to help someone simply by acknowledging their feelings and helping them experience them fully. I am inspired and encouraged by the Trading Tribe Process.

Thank you for providing the TTP framework. It is improving the lives and well-being of our Tribe already.

 

Thank you for sharing your process.

Thank you for sharing your process.

Saturday, December 12, 2009

 

Breathwork Weekend Feedback

 


Dear Ed,

After Breathwork my wife mentions observing some changes in me. She asks me why I decided to leave.

 

I mention that I feel that we have different expectancies regarding emotional and physical intimacy, about the way we manage money, how we raise our children, how we spend the free time... She observes that we have almost no common interests. She mentions that she understands me yet, that she stays with her views (i.e. to shout at the children and giving them orders, to let incompetent managers administer the money, not being interested in personal growth), and that she thinks that separating is OK.

Thank you for walking the path with me.

Thank you for sharing your process.

Friday, December 11, 2009

 

Breathwork Weekend Feedback


Dear Ed and Tribe,

The Breathwork weekend is truly an amazing experience!

When I arrive at Ed's on Friday evening for the weekend I connect with many friends. I feel openness and acceptance within the group. We drum in and the weekend begins!

Friday evening we discuss the issues we want to deal with in the Breathwork within small tribal groups. The groups change throughout the evening so each of us can share and receive feedback from all Tribe members. We share many deep feelings within the Tribes. Everyone supports each other in a very communal atmosphere.

The issue I initially feel the hottest about is a recent break-up with my ex-girlfriend. While this is emotional for me, from working with various support groups late into the night I discover there is a deeper issue which I am facing.

I decide to be the champion for the Tribe in understanding the fear of letting others down.

Saturday morning we wake up early, have a light breakfast, and head out for a group hike. When we return, Ed goes over the Breathwork process one last time. We divide into two groups of breathers - I join the second group. As I observe the first group of breathers, I have trouble believing what I see. I see people completely in outer body experiences. I have trouble accepting that what I see is reality.

When it is my turn to do Breathwork in the afternoon session, I feel anxious and wonder if the process will work on me.

I begin the process. Within only a few minutes of heavy deep breathing, my body goes through dramatic changes. I begin to sweat. I feel dizzy and notice my face begins to tingle like the feeling of it being asleep. Then, I notice my hands cramp up and they have a feeling of being asleep too. This feeling spreads from my hands up to my shoulders. I continue to push and go with the feeling. I enjoy the music and the drumming within the room. The support from the tribe members is outstanding!

I have many feelings come up during the process - I remain open the my feelings and experience them. I have no sense of time during the process and after complete exhaustion and returning from the other world, I fall asleep on the floor. I wake up to see I am the only "breather" in the room.

I go to Ed's kitchen to make a drawing - my drawing is a sun like object or a "ball of energy" and from that there are channels moving upwards.

My initial issue completely dissolves - it doesn't exist anymore. I have many great insights about life and serving others. I move further towards right livelihood.

Thank you everyone for your support! I continue to support you.
 

Thank you for sharing your process.

Thursday, December 10, 2009


 

Breathwork Weekend Feedback

 

Ed,



Many things happen before the Breathwork weekend. While writing my application for the weekend I start feeling a familiar feeling of anxiety in my chest and then dread of what the weekend will reveal.

 

At Ed's suggestion I take the feeling of dread to my tribe. That experience is posted on the FAQ page [Sunday Nov. 22, 2009]. Thursday evening the night before I was to leave, one of my employees backed a car into the garage door of the shop and bent the track to the door along with the customers rear bumper. After getting upset for a minute all of a sudden I realized the damage is already done and no matter how mad I get it will not undo the damage so I get busy with the young man and set about to straighten out the track to the door so we can lock the shop for the night. I call the customer and explain what happened and he was great about it. I told him I am going out of town and when I return I will take the car to the body shop and get it repaired. We did not get out of there until 8:30pm. After that every thing went well on the trip to Tahoe and back.

The weekend started Friday evening at 5:00pm. Ed goes into great detail about what we can expect, how the weekend will go, what our roles are to be and the difference between how he conducts Breathwork and how other people do. We spend a lot of time clarifying our issues that we intend to bring to the Breathwork working in groups of 3 and then all together as a tribe.

 

We build a bus out of our issue to take our issue into the unconscious mind and bring the solution back into the conscious mind. Ed works with my feeling of anxiety. He ask me if he told me there was an important letter in my mailbox and I should go see what it is, how I would feel about it. I replied I will be anxious and worry about what it is until I finally open it to see. Ed says I am anxious of the unknown and I agree so that is the issue I take to the Breathwork.

 

The Friday session last until 12:30 or so in the morning. We get up around 8:00 am Saturday morning eat a light breakfast of cereal and fruit and then go on a walk around town.

 

There are 12 people participating. Ed describes our roles, 6 work and the other 6 drum and watch the people working to keep them breathing and make sure they stay safe by putting a pillow under their fist if they feel they want to pound their fist on the floor or block their way if they try to move out of their space. I am on the second session so I drum for my participant as Ed has loud music playing to keep the rhythm of the breathing going. Some just lay there and deep breathe and some move around, make noise or do a lot more physical things.

 

After quite a while the music switches to different styles and Ed motions us to quiet the drumming. I really thought I was going to get blisters on my hands and fingers from the aggressive drumming but after awhile I just gave that up, continued to drum and it was not an issue anymore. Finally one at a time people would get up and go to the kitchen and draw on paper with crayons. It takes a while for the conscious mind to come back so the drawing lets the unconscious mind express what it wants.

 

So now it is my turn. I lay down on the mat the music and drumming start and I start the deep breathing. I have concerns about if I can do it right, can I keep the breathing up for that long, will it be scary, will my mind go away and not come back? I decide once again to quit resisting and just let it go, just let everything be OK. I find it pleasant at first then my hands start to tingle, then my face tingles, I rub my face, then my back and arms tingle and I rub them. As I go under I feel like I am in a VERY deep sleep. The inside of my head is gray. I retain some consciousness. My eyes detect sunlight on my face and I wonder if the sun is shining through the window or if someone is directing the sunlight on my face with a mirror. I resist the urge to open my eyes and look to see. My issue is anxiety I feel in my chest so I try to feel that feeling and turn it up so my mind can work on it.

 

I can not generate that feeling. I worry that if I can not generate that feeling will I get the result I hope to get. I quit that and just let it be OK. I feel tingling in my hands, arms and legs not unlike the tingling you may feel when you hit your funny bone but not so unpleasant. I have lost track of time and all of a sudden I get a powerful painful cramp that extends from my feet all the was to my neck! OUCH THAT HURTS! It doubles me over in a fetal position and I roll over from my back to my right side. When I do this the cramp and pain subsides and I feel peace. After awhile I just enjoy lying there feeling peaceful. When I start coming to I feel my mind come back quickly. I am surprised how fast I come to. I sit up and realize how dry my mouth is and how chapped my lips are. I look around the room and realize there is only one person left in the room working and am surprised I have been out for that long.

 

I ask for water and then get up and head to the kitchen table to draw. I can not think of anything to draw but am attracted to the purple crayon. I draw something--don't know what it is but it is pretty and then eat some raisins and some chocolate chip cookies. We take time to come around and then get together and talk about our drawings. I feel calm and peaceful and wonder if the Breathwork has been effective. I don't feel anxious but have not put it to the test yet. We go to sleep, get up Sunday morning, have a final checkout and just hang out and talk and play with puzzles that Ed has around his home. He has a lot of them.

 

It starts snowing this morning and although our flight does not leave until 5:45 we leave around noon to make sure we make it to the airport on time. As we leave town and head over the mountain the intensity of the snow increases. I check the temperature outside the car and it is 13 degrees as the snow picks up. In some places we can barely see the road ahead but 2 cars come out of a ski spot and lead the way with us following in their tracks. I look for the feeling of anxiety in my chest and can not find it there. I feel peaceful and calm. I am not driving therefore not in control so I feel what I think is a healthy concern for our safety but I am at peace with everything.

 

I think back to the weekend and remember my outcome I stated I want is to feel calm and peaceful with an appropriate amount of concern in the face of uncertainty and the unknown. I think YES IT DOES WORK. I did get the result I came for even if it did not look just like I thought it would. And we drove on to [City].
 

Thank you for sharing your process.

Thursday, December 10, 2009

 

Breathwork Weekend Feedback

 


Dear Tribe,

I submit my report about the Breathwork Weekend. First, the technical aspects for FAQ readers:

1. “Breathwork” consists of breathing deeper and faster as usual for several minutes, sometimes for more than half an hour. This leads to a change in the body chemistry and in the brain's oxygen supply. The changes results in a suppression of conscience and the surging of unconscious contents. It is like having a dream while being awake, switching several times between both states (conscious / dreamlike).

2. Each “breather” has a “sitter” who supports him with drumming and takes care of him (giving water or handkerchiefs, or helping to stand up) while he is in the dreamlike state.

3. Several aspects of Ed's technique are different from the approach of Dr. Grof, called Holotropic Breathwork TM. The last is based on the hope that the unconscious mind will reveal what is more relevant in the current situation and leads to a resolution of the conflict. With Ed's method, “breathers” can target a certain issue and obtain information from the unconscious mind about a specific area.

4. Ed's approach is intense. After the long preparation on Friday, the exercise Saturday morning and the lack of sleep and food I am more open and have less shades to hide me from experiencing feelings.

We devote the Friday afternoon to identify our issues. It takes several turns and we all work with all other attendees. I am surprised to see that most of us share issues related to intimacy, manipulating people, self-confidence, and the opinion of others about us. Ed mentions that resolving our own issue in a group leads to a resolution of the same issue in all participants; I can confirm this observation, since I see this happening a couple of times in my own tribe.

I take my turn for Breathwork after being sitter in the first session. I follow the rhythm of the music and breath fast and deep for several minutes. My arms and legs start to tingle, I have (as Ed informed us that it could happen) a cramp in my diaphragm. It is painful; I feel like throwing up and my sitter reaches me a bucket. I keep on breathing and the feeling recedes. I keep on breathing, breathing, breathing. As I am deep in the process, I start having sights, and also insights. I see planets, I experience myself in space, I see my own death and observe my irrelevance being part of an immortal universe. I see how superfluous all the struggle is in view of our limited life and the unavoidable death.

I realize that in the moment of now everything is perfect and we have no needs at all. I cannot put it into words, but is an ineffable knowledge of openness for the other people and of renounce to myself. I experience an endless peace and I realize that this perfection, this peace is within me and I can experience it any time I need. I realize that I generate my own feelings and that they relate to the past or to the future. I also realize that, by having need or expectations, I do not fully enjoy the now and what I currently have (even if it is nothing).

I have a feeling of union with the other attendants. I feel that we are all one, united and creating something all together. I experience myself as unlimited and in communion with everything. I start laughing and shouting "join me, join me!". At the same time I realize how trend following is the only sensible approach to investing, since it is not based in expectations: I just follow the signals generated by a system.

My expectations about the non-existing future limiting the joy, the freedom and the perfection in the now...

As I am finished I smile to my sitter who wants to help me to stand. I don't need it. I feel elated, happy, full of energy.

The next day I stand in front of Lake Tahoe, observing the power of a mounting storm. I think "sometime I would like to own a house like this". I start laughing. AHA! I am living in the future and in the past! I finally realize, at a deep level, what Ed means with "now" and "perfection". I have more and more AHA's about my approach to many things.

I return to [Country] during a snow storm. I enjoy every instant of the trip. Everything is perfect. As I arrive I feel relaxed, elated, happy.

I thank you all for your relentless support and example.

Thank you for sharing your process.

Thursday, December 10, 2009

 

Breathwork Weekend Feedback

 

Ed,


Spending time with Ed and the Tribe always seems to involve some level of surrender, this is good as my mind has many attachments of what I think I might or feel about things.

The idea of bravely going forth on behalf of the Tribe for explorations and the shared knowledge we bring back as a result is a such a beautiful
metaphor for service to others.

I lay on my back, and start breathing deeply, keeping pace with the music very quickly I start to get a little light headed but I continue thru my discomfort. I think of my issue of not accepting who I am, and feel that... I remember my father
and his words .

I continue breathing, my arms begin to become somewhat numb. My hands start to raise towards my chest and hands start to contract, I am continuing to breathe letting go of myself into the rhythm of the drums and music. Periodically I see light above me, eyes closed, I briefly wonder if someone has opened a skylight.


It is somewhat painful in my chest and hands. I continue breathing.


I begin to feel the need to sit up, I briefly wonder whether this is right, but let go of that and realize
whatever I feel is right.


My back straightens up, my legs cross and my hands just start to open... slowly.  As they do, I begin to feel mass between them as if I am containing an energy I expand my hands, as I do the energy expands... I can move it, form it, I then bring this energy as a ball closer to me
it is as a ball, I then lift it up and it expands above me I feel the weight of it, not too heavy but it has mass and size then I collapse it around me and I am in its presence and field

I have no thoughts at that moment
I am in that moment, not future not past...
I have love for all things and people and it is good.

The most wondrous thing of all is that on some level this experience of light and oneness was shared and sharing light, and awakening
is my greatest wish for the world and all things .

Thank you for sharing your process.

Thursday, December 10, 2009

 

Breathwork Weekend Feedback

 

Dear Ed,

 

From the Breathwork Weekend:


I lie on the mat. [Name] guides us to relax from our toes upward. He then turns on the music, signals the drummers to start, and tells us to breathe.

I breathe, deeply, quickly. I grunt on my exhalations. A tingling feeling fills my arms and they float a few inches off the floor. I thrash my head from side to side in time with my breaths. I test the forms I develop regarding my issue in Friday night's processes. And…

Later, I regain some degree of consciousness and I feel disappointment, plus annoyance at my sitter for letting me fall asleep. I feel I've taken a confused, shallow nap that lasted 15 minutes. I have not explored my issue of resisting being told what to do; I have none of the visions and insights I had expected. I am surprised when the clock says two hours have elapsed.

I feel failure and inadequacy during the check-ins after the Breathwork sessions and for a few days afterward. I express some of this in my check-ins, but I believe I am shading the truth and I feel guilt both for doing so and for failing to return any insights to my tribe.

 

On Tuesday, three days after my Breathwork session, I realize that I explored resistance to being told what to do by… resisting being told what to do. Resisting riding the bus; resisting going to the other world; resisting encountering visions and insights; resisting accepting my Breathwork process as it is. I experience this realization and detach from the failure, inadequacy, and guilt.

Yet I change even before this realization. The changes I notice relate to the opposite of my stated issue: I less resist telling others what to do. Monday at my place of employment, I instruct my subordinates with more assuredness than formerly, and notice they accept my instructions without resentment. Monday morning, I walk my dog, and find he tugs at his leash less than I expect. I notice I am more assured handling his leash. Monday night, I administer a drug in vapor form to my infant son by holding a mask over his mouth and nose. He cries, and thrashes his head much like I did at the beginning of my Breathwork process; I confidently move the nebulizer mask with him until his thrashing subsides. With both my dog and my son, I notice small changes in the muscle tone of my right arm, the arm holding the leash or the mask, and some matching shift in my mind below my consciousness.

I have other experiences during the Breathwork weekend that remain vivid.

In the kitchen, after breathing, while eating fruit and drawing with crayons, I notice the pot rack hanging from the ceiling. I deeply and strongly see it is exactly as it is and perfectly as it should be.

 

I expand my notice to the counter underneath it and see the same thing. Everything is perfect where it is. I particularly notice a red popcorn box. It is perfect where it is, yet it would also be perfect if it were someplace else. I realize further I have the power to move it with my mind--if I choose, my mind can tell my legs to lift me from my chair and cross the kitchen to the counter, and my mind can tell my arm to lift and move the popcorn box.

A few minutes later, I go out on the porch and realize the perfection of each thing, each collection of things, each cycle--waves on the lake, swaying pines, day, life, the universe.

Several times during the weekend I feel isolation, lack of belonging, being marked out. I am the only attendee who is not a workshop graduate; when others express happiness at seeing each other again after past workshop, I feel isolation.

 

I cajole [Name], a hedge fund executive with a media presence and a strong exudation of confidence, to role-play only women (my kindergarten teacher, my mother) during Friday night's processes, and I realize my cajoling him was a passive-aggressive attempt to belittle him and thus medicate my isolation.

 

During down times between processes, I stand on the side of knots of conversation and believe I am not welcome in them. During Breathwork, I choose the position furthest from the fireplace, the lake, the sun. Below consciousness, I know the opening of my side of the room to the entryway and the rest of the house lets me feel isolated.

 

Saturday night, I laugh nervously when [Name] tells us [a Ritual] purges the lies from your body. I sleep alone in the back of a room full of computers, the farthest space in the house from the fireplace. Sunday morning, for the final check-out, the others in the room form a horseshoe shape with me alone in the open end. I realize I medicate feelings of isolation by being alone, and I chuckle as I write this insight.

I experience much more. I feel astonishment at the processes of the breathers. When I am a sitter, I see men shriek, laugh, cry, give birth. I am one of several drummers for [Name], and I feel pride when he compliments our drumming after his breathing process. I feel caution and fear when I drive into a snowstorm atop Mt. Rose during my return to the airport, and relief when we descend to flurries and wind-cleared roads approaching Reno. I feel happiness at sharing a process of personal growth with people from around the world, people who were almost all strangers to me before Friday afternoon.

After the weekend, I notice other changes in me than the ones I mentioned above.

Sunday afternoon, waiting at the airport, I realize everyone experiences being told to do something he doesn't want to do--when his mother's uterus contracts to force him out of the womb.

Sunday night, on the second leg of my flight home, I realize I can do anything, if I choose to do it. I either know how or I can learn how. It is possible to run hedge funds, trade for a living, or live in deeply fulfilling intimacy with the people important to them—I’ve seen people who do each of those things this weekend—so I can do it too, if I choose and am willing to feel the feelings that come up.

Thoughts that have been slowly crystallizing collect more heft from the weekend. I finally tell my wife about a situation where I continually make an easy but uncomfortable choice, where making a more comfortable choice would impact our family. She accepts what I have to say and supports me in whatever change I wish to make.

I also have been aware for several months now that, in my further evolution since the result of my Decision Process (FAQ, 26 Nov 2007), I am a writer first and a trader second. The weekend makes this awareness stronger. I have made trading commitments I will honor; I accept I may expand my trading commitments in the future; but not now. I see many unproductive motivations about trading--I want to live in a big house, flip the bird to my bosses on my last day in their employment, and show my late father that he was on the right track in his trading aspirations.

Monday morning, a vision comes to me: it has concentric circles, but from the outermost circle rises a forest of lines. The lines braid and twist, some longer, some shorter, but all curve back to the outermost circle. Each circle is built from the curved-up lines coming from the previous circle. Line and Circles …. I think about the complementary nature of masculine and feminine, yang and yin, for some months, but I realize Lines and Circles transcend those labels. Lines and Circles have been organizing principles of the universe since the Big Bang. I realize I see Lines and Circles everywhere--in the sway of the pines in the wind; in the dash of a chipmunk from the roadside to my snow-covered lane on Mt. Rose Highway and his hesitation before turning around; in a car's makeshift radio antenna, a straightened coat hanger with the end re-bent into a heart shape.

Finally, I notice, despite this week's challenges of a sick child, aging parents, and career commitments, my wife and I relate with much more intimacy than we did before the weekend.

Thank you again, Ed, for guiding us through the weekend, helping us on our journeys, and allowing us to help you on yours.

Thank you for sharing your process.

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