November 21, 2011

Diversification

Dear Mr. Seykota,

I recently started working on automated trading systems in a reasonable way by proper backtesting, keeping it simple and so on. Thus I really love your Trading System Project! The really important parts concerning risk management / position sizing and so on are not covered yet.

Actually, I would like to know if you have any plans continuing to share your ideas in the TSP as the last update was in 2006.

Nevertheless I have one concern where I seek your advice/thoughts. Volume is the name of the game when it comes to manual trend following in the stockmarket however I found a lot of automated systems for commodities currencies which do not include any volume indicators or volume itself in both the entry and or confirmation process?

Isn't it that price action is only reasonable together with volume information?

You started to scratch on the surface of diversification in your TSP by splitting your equity on two different methods each trading a different commodity. However some systems use more than one entry method together on the same chart, in such a case the optimization process is quite complex.

My question is if you can get an idea by just optimizing both system separately on the chart and then adding them both together hoping that they interact in a constructive fashion.

I hope you can spare a minute or two helping me out with my questions.

By the way I am German so please excuse any bad grammar.

November 21, 2011

OK

Dear Ed,

Just a message from The Netherlands checking in on you, are you OK?

Best regards,

November 22, 2011

Wants to Meet

Dear Mr. Seykota (Ed),

My husband, [Name] has just completed a stock program which he has been working on for over ten years. He has read your book(s) and has developed a stock trading philosophy primarily based on your teachings. He does not participate in a tribe since there is no tribe in our area (Windsor, Canada). He has contemplated going to one of your seminars and plans to attend one in the upcoming new year. I am looking to provide him with a wonderful, unique present to support the completion of his stock program.

I was wondering if you would entertain the idea of meeting my husband for one breakfast, lunch or dinner at the restaurant of your choice for an hour or two. We would fly out to where you currently are. Of course, we would set the parameters of the meeting in advance such as the price (perhaps to you or the charity of your choice) and what types of questions can be asked and topics discussed. Even just having the opportunity to meet you would be a memorable opportunity. I hope this does not sound too crazy but it would really be a memorable experience for him.

Thank you for your consideration,

November 22, 2011

Thanksgiving

Hi Ed. I wish you and your children a happy and peaceful Thanksgiving.

I hope everything is good with you.

November 24, 2011

Thanksgiving

I wanted to say, Happy Thanksgiving Ed, and thank you for helping me recently.

I hope you have a blessed day. We have much to be thankful for.

Take good care,

November 30, 2011

Benefits From TTP

Respected Guruji,

I prostrate before you and seek your Blessings. I find it difficult to find words to thank you and your site for the excellent guidance provided by it to traders all along the world. I check the FAQ site almost every week for the last 6 months and do not find it updated - I hope everything is OK and fine at your end. I presume that you are busy or a bit tired of all the repetitive posts we make to you day in and out. Nevertheless, I pray that you please respond to a few (if not all) our posts so as to help us continue our education and seek right livelihood.

I am a member of the [City] Trading Tribe for the last 3 years or so and I find it unbelievable to be the same person I was 3 years ago. I try to summarize a bit of what I learn from the TTP and tribe,

1. Before I join the tribe, I face a drawdown of nearly 50 % (the max drawdown I had was around 66%) due to my inability to feel fear. I had no system whatsoever and allowed my Fred to play dramas. After I join tribe, I take hot seats, trade a system and feel the pain of losses. I cut all my losses, follow trends and think that somewhere my Fred has been able to communicate with my CM. I am happy to say that by God's grace, my equity curve is not only at an all time high, but at 25% more than what it was at its peak in early 2008 with a maximum drawdown of 12%. This at a time when world markets are at a good discount to their 2007 highs. Even in this year of turmoil trading, I am in the green. I have no other explanation for this but the Trading Tribe process - an amazing true story of how your guidance works wonders.

2. After joining the tribe, I feel all feelings freely and more so, those I am not comfortable with. I had issues with fear - I was amazed that at age 48, I take all the rides in all major parks of Orlando - all the roller coasters, the 80 feet water slides, the merry-go-round on 108 floor of Stratosphere, Las Vegas. I always encourage to feel the feelings I am not comfortable with.

3. I have issues in spending freely - I take the issue to hot seat and presto, the guilt of spending is overcome and I do not deny myself enjoying myself so long as it is worth it.

4. I used to be a control centric person - I take the issue to hot seat and the control issue subsides and I feel more intimacy coming in.

I am very sure that all these feelings have subsided (if not overcome fully) since no matter how hard I try, I have not been able to find any rock.

I just wanted to thank you very much and request you to please continue to guide all of us by helping us continuing with our education by updating your FAQ. I also look forward to your world tour and your trip to [City]. I once again seek your Blessings and thank you sooooooo muuuuucccchhh. You are my Guruji and I pray to GOD for the Good Health, Happiness & Prosperity for you and all your near and dear ones to come.

November 30, 2011

Negative Emotions

Hi Ed thought I would check in.

This whole emotion thing is tricky. My self evaluation is that one issue I have is that I don't know how to experience negative emotions.

Thanks for the framework that all emotions have a positive intention.

My intention is to miss your posts.

Cheers