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Ed
Seykota's FAQ
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Sep 27, 2022
R-Multiples
Hello Ed,
I hope life is good!
Do you know any trader who uses R-Multiples (Van Tharp)? Both in daily trading and backtesting.
I would like to contact someone who does.
If so, would you forward my contact to him?
Thanks,
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Thank you for raising this issue.
R-Multiples generally indicate Reward/Risk.
In order to employ R-Multiples at the inception of a trade, you have to make a prediction about the potential Reward.
You might consider taking your feelings about predicting the non-existing future to Tribe as an entry point. |
Sep 26, 2022
Encouragement
Dear Ed,
Hope this letter find you well!
I am writing just to see whether you are doing ok? Since I found the FAQ stopped updating since March, 2022.
I
read about you from books such as ‘Trend Following’ and was impressed
by your wisdom as well as your kindness to help people.
Hope you are doing good and see you online soon! Warmest regards,
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Thank you for encouraging me to get back to work.
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Sep 21, 2022
Radial Momentum; Lake Ratio; Recognition
Dear Ed,
Regarding radial momentum, did you see this?
it
is in German (my mother tongue) but it says the similar things that you
say, using different words. He agrees that the angle of attack is what
causes wings to generate lift. He also agrees that the
"lift-due-to-speed difference-theory" is patently wrong. See also in English:
One of the drawings give interesting clue to what might represent a better wing design than currently available.
There
you have it, a German Physics professor agreeing with you:-) It might
help to convince some of your stubborn academic contacts? At least its
a german physics professor saying so, not some crazy trader guy… People
are easy to convince with the right tools.
My main reason
for writing you however is that, after much research, my
trend-following system is coming together. It uses your "lake ratio“ as
a primary measure of success.
Thank you very much Ed, for
publishing this great idea. The Lake Ratio is such a clear, pure idea,
wonderfully simple yet effective. Wow. Takes some time to fully
appreciate its simplicity.
The following words may be totally amiss, and I apologise in advance.
My intention is to make you think, not to make you angry.
I
do not understand why the world does not give you more credit, for both
the lake ratio and radial momentum, also for trading in general. Why on
earth does anyone still use a completely useless sharpe ratio instead
of the lake ratio? Why are physics books still wrong?
Come
to think of it, perhaps its the very same "thing" that gives you all
your trading profits, that is also preventing you from getting more
credit in other fields: Your own personality, which feeds into the way
you present yourself.
Is it a) because as an engineer, it is
enough for you to have found the solution, so you do not care about the
way it is presented? And you may have enough money not to care what
others think of you?
-> in this case, why publish at all, why contact academics for feedback?
or
b) because you are (like me, an introvert) almost afraid to be in the
public spotlight and therefore you unconsciously try to present your
ideas in the worst, most hidden way possible?
-> in this case, you will get a lot of recognition from guys like me, just not from the public, and it may be what you want.
or
c) you would actually like to present your thoughts, for example to
prevent wrong teaching in schools, and get recognition from the public.
But its just not your talent to do so?
-> in this case, I can probably help you, if you want.
like
you said: Everyone gets what he wants from the markets. True for
financial markets, but also in the „markets" of academic recognition,
publicity and so on;-)
kind regards
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Thank you for raising some interesting points.
I gather that you deal with these issues:
you feel a need to apologize for sharing your feelings;
you try to avoid angry people;
you have a deep concern about receiving credit;
you try to understand complex systems in terms of simple linear cause-effect reasons.
You might consider taking these issues to Tribe as entry points.
- - - - -
I
enjoy the process of learning how to free myself and others from deep
medicinal behavioral patters; I can think of lots of easier ways
to get pats on the head.
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Sep 12, 2022
Impostor Account
Mr. Seykota:
Last
year you had an account in Linkedin and you posted a number of forex
charts illustrating a no of conditions re opening price and weekly key.
Could you please email me those chart and the text which you published then?
Best wishes,
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Thank you for letting me know.
I do not post to Linkedin nor offer to manage accounts nor give specific trading advice.
I might guess I have yet another impostor.
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Sep 12, 2022
Wants to Join a Tribe
Hi Ed I hope you are well.
I am interested in participating in the trading tribe and am located here in Albuquerque, New Mexico.
I
did not see any Trading Tribes in the New Mexico area. Are these
meetings held remotely - how do I sign up to start to participate?
Thanks,
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Thank you for raising these issues.
At this point, you can check the Tribe Member Reach-Out Page for others near you.
You can also post your own listing.
You can also start your own Tribe per the model in The Trading Tribe and in the FAQ pages.
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Sep 11, 2022
Nachat
Happy Sunday Ed,
Im re-reading The Tading Tribe
and this morning I had an opportunity to practice, I’m sharing this
little conversation with you just for fun and perhaps you may receive
some “nachat” ( Hebrew word for feeling fulfilment or enjoyment usually
used in contact when one notice their pupil or child performing well ) Immediately
upon receiving the message i felt a feeling of defensiveness and
decided to experience the feeling and realize I was being manipulated
so I created a “field of acknowledgement” instead of responding to the
context
What would have normally been a nasty drawn out
texting war was quickly diffused with 2 textbook responses and we both
can continue our day enjoying “right livelihood.”
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Thank you for checking in.
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Sep 9, 2022
Breaking Out
Hello Ed,
Hope you are doing great.
What breakout period do you leverage to enter a trade? For example, 21 days up, etc.
Would appreciate your advice.
Thanks,
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Thank you for raising this issue.
I do not know what you mean by leveraging a breakout period.
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Sep 3, 2022
Hawks
Hi Ed,
You
taught me about magazine covers and other signs and omens. I
experienced one last month. I was at Jackson Hole and in the
Lodge there were two huge live hawks on Wednesday. Then on Friday
the Fed Chair gave a hawkish speech.
best regards,
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Thank you for checking in.
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