July 1 - 14, 2008
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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
(Quotes from Ed in Red)
July 13, 2008
reading FAQ since it is a great resource to improve my trading results.
What I enjoy most is your humor and wit. You may be the grandest
wiseacre I have come across :)
I notice that FAQ's regarding public education generate strong feelings
I think the
biggest problem with our education system is the education is "free" and
people get what they pay for.
disclaimer: I know public education is really paid via property taxes,
but parents, teachers, administrators and students would be responsible
for higher standards in a fee based system.
Thank you for your support. In
my opinion, all the best teachers are, at heart, wise acres.
The educators below include a fierce
fighter for freedom, someone with deep insight into the human condition
and someone who dares to tell the truth.
Perhaps you can sort out which is
I support you in expressing
your concerns about "free" education. I'm just glad we don't get
as much of it as we pay for.
July 31, 1912 – November 16, 2006
dares to support free enterprise.
May 12, 1937 - June 22 2008
dares to say seven words.
dares to point out the obvious.
July 13, 2008
the Trading System Project
your results in excel with some VB code, but still do not understand how
to calculate your PDD and dr-dn. Thanks,
Drawdown is the dollar amount from
the previous Peak to the current equity. Percent DD is the ratio
of Drawdown to Peak.
July 12, 2008
I'm wanting to test your willingness to allow another a-ha into your
life, as it may well prove useful to the entire tribe. The below words
do not presume to actually provide the a-ha, but merely to set the stage
(if I had all the answers, I woudn't be writing!).
Warning: Change, as always, lies ahead.
Wondering: Since falsehood does not hold up well in any endeavor, I'm
wondering how to reconcile quantum reality and language, in particular
the paradigm of subject - verb - object, which assumes a fragmented
universe, which -- as I know you're very aware -- does not exist.
Background: In the substantially proven concept that is called "the most
profound in science," that is to say the 44 year-old Bell's Theorem,
there is no such thing as a "local reality," but, instead, only what
David Bohm refers to in a book by the same name as: "Wholeness and the
In essence, Bell's Theorem states (and mathematically proves) that a
hidden quantum variable, sometimes called the "pilot wave,"
instantaneously connects everything at once at superluminal speeds...in
the Now (that of course being about 5.4 x 10xx-44 seconds in "Planck
And thus all, of course, is at-once both oneness and change in the Now.
For consideration: After an appropriate set-up, David Bohm remarks in
his book: "Such (fragmented, subject - verb - object) thought was shown
to bring about a thoroughgoing confusion that tends to permeate every
phase of life, and that ultimately makes impossible the solution of
individual and societal problems."
Bohm takes on the fragmented (and therefore false) thinking implied by
an object-oriented language (e.g., English) by proposing that a more
action/verb-centric language such as ancient Hebrew or Aramaic be used.
In particular, Bohm discusses a new mode of language that he calls the "rheomode"
The practical wisdom in this is that a rheomode more closely parallels
what's really happening, and is therefore more truthful than an imagined
universe made up of objects, regardless of how much our physical human
sensory systems would prefer to argue otherwise.
A-ha in Waiting: Since I imagine that it would be rather lonely (and
impractical) to come up on one's own with a modern language construct
that more closely mirrors reality and helps to end fragmented thinking,
I am thus writing -- in true wonder -- of your thoughts along these
lines and any a-ha's that you may be willing to offer us.
I wonder how high you have to be to
produce these types of regards.
Upon reflection, I'd have to
conclude that it's crackers to snip a rozzer the dropsy in snide ...
which, of course brings to mind the saddish connubulation of a
vorpal-blade missing its snicker-snack .
Lewis Carroll's poem of nonsense words
to numerous foreign languages.
July 11, 2008
"The TTP toolkit, including the Rocks Process are useful for person who
wish to employ them in their own personal explorations and growth.
These tools are not particularly useful for "fixing" other people.
For example, in this case, you might consider taking your feelings about
<fixing someone else> to Tribe. "
Thanks for the reply, and especially the mini 'a-ha' it has just
The phrase, "Physician, heal thyself" comes to my mind. Yes, i
seem to like 'fixing' other people and your reply hits home very hard.
fact as i read your response again, i experience a strange (and
relaxing) feeling of blankness and stillness and an inability to think
clearly, I feel very vague right now like i'm in some kind of a stupor .
. . I feel just like a vegetable.
Thanks again Ed,
Thank you for sharing your process.
Feelings or disorientation may
accompany deep re-structuring of thought processes.
If you feel like a vegetable,
perhaps things are about to turnip for you.
The Man with a Turnip
points the way
with a turnip.
July 11, 2008
In FAQ, Bless the Speculator Ed says, "Politicians
traditionally eventually blame speculators for
the very price increases that their political policies induce"
Do you mean, "Politicians traditionally blame speculators for the very
price eventual increases that their political policies induce"?
Thank you for the catch.
July 11, 2008
Dynamic Portfolio Selection
I agree with you that trying to predict the non-existing future is
'senseless', but i wonder if trend trading doesn't also use techniques
that 'were' successful in the past and hence you 'expect' them to work
in the non-existing future (--> increasing your potential reward/risk
Okay, I now try to stay in the now respectively try to find ways to deal
with this topic by staying in the now.
In your TSP-Trend-exercise you show us a way how to define (one of the
infinite possibilities) a trend. I wonder if this could be assimilated
into a portfolio selection method.
Say, for example, you want to trade a
maximum of ten different stocks. Then you sell your tenth stock and so
you are able to buy an other stock. You scan all stocks and look what
stocks perform at the best momentum NOW. When getting the list there are
several possibilities on how to carry on. One possibility might be to
get into the strongest performing stock. Another might be to check with
the support-resistance or ema-system whether the system show a buy
signal or not.
I am interested what you think about this.
I also implemented the buy-and-hold strategy. Random stock picking
didn't indicate an advantage in comparison to the SR or EMA systems but
i only tested a few [Country] stocks for that i only have historical data
for the last 5 years. I plan to investigate this further with stocks
with a wider range of historical data in the next few weeks. The next
two weeks i will be busy (7 exams for university).
I wish you and your 'clients' a good time at the workshop. May all the
participants get what they want :-)
Thank you for sharing your process.
Getting Your Language in the Now
is a good first step
towards clarifying your mind.
Friday, July 11,
Out with Gout
I don´t know the words in English,
hence gute Besserung (meaning "I wish you
a fast and complete recovery from the gout").
Your email with the smiley arrives the night before an important
examination. It helps. Thanks.
Thank you for your support.
The miracle cure: H20,
in large doses.
Fortunately, I have a pretty good
supply out in the back yard.
July 11, 2008
I seem to enroll an endless supply of people in my life that do not
acknowledge me, or at least not in the way I want.
You might consider the actual way
you really want is:
Having people acknowledge you
in a very special way
so you can claim they don't.
Congratulations on a fine job of
training your (non) acknowledgment staff.
July 11, 2008
I just recently found out your
site and start your project with exponential crossover system.
I have few
1. What is dr-dn? How to calculate it?
2. How to calculate PDD?
3. What is a Peak?
4. Any or max or some local?
5. And how to calculate Sub_Low?
Thanks in advance,
You might consider taking your
feelings about <wanting others to do everything for you> to Tribe.
A Guy's Just Gotta Doo
some things for himself.
Thursday, July 10,
5 ~ 25 ~ 50 BILLION dollar Banknotes
notes remind me of your German currency presentation at the
Several other countries are
following similar policies, namely: printing up money instead of earning
July 9, 2008
Mr. Ed Seykota,
Hello ... I am working as a
stock and futures broker. Before starting this letter, please let me
tell you how much I respect you. What you have done in the trading world
is one of the most precious things that should be transferred and
educated to the beginner like me.
Even though trend following strategy already became such a famous
strategy in US, In [Country] that is not as popular yet. But I believe I can
apply the trend following strategy to futures trading in [Country] futures
too. I want to broaden my sight and to improve my trading skill as
trader with trend following strategy.
So I need your advice and knowledge. If you can, please tell me the way
to take part in the education course prepared by you or the way to buy
books written by you. Because [Country] is far from America, I think only
way I can get some advice and education from you is just using on-line
system or on-line education.
Tuesday, July 8, 2008
Connect with a Tribe
I’ve been trying to get in touch with
the TT in [City & Country] and have received no reply.
Is this tribe still around?
Thank you for taking the time to read my email.
I do not sponsor, manage or closely
monitor the activities in individual Tribes aside from posting their
contact information - and from what I hear through this column.
July 7, 2008
Back to the Future
I Googled on the name "Ed Seykota" after deciding to re-read Jack
Schwager's first book, which I originally read right after it first came
out. The Seykota interview struck such a deep chord that I decided to
find out more.
I found your website at www.seykota.com.
Most of the
pages are dated 2004 or 2005. I am wondering if you are actively
conducting this process at this time. Thanks.
Hmmm ... At the rate you are going,
you are likely to see this response sometime around 2011.
July 7, 2008
Does Mr. Seykota still mentor people and teach them
how to become a skilled commodities trader?
I've been a Financial Advisor for the past several years
and I'm tired of only seeing growth from investments when the markets
are going up. I'd love to learn from one of the best commodities gurus
Some ways you can access this
through this site.
2. Reading The
4. Attending a
5. Signing up
for Private Consulting.
6. Ignore it
Of the above, #6 may be the most
I’m wondering if you have ever been to a program called [Title]? The
reason I ask is because of your book “the Trading Tribe”… what you write
about in that book and the groups you have set up where people can
openly release. Your TTP and the ... program are very similar
It has been such a beneficial environment for me personally.
Before you enroll in a money
seminar, you might check if the presenters have any.
The Promise and Assumption
of many popular prosperity seminars
is that money
can make you happy.
After Reading FAQ, Attending Tribe Meetings
and a TTP Workshop or Two.
can look and sound like this.
July 5, 2008
Here is the monthly update on
my marathon. I made my monthly goal for distance, which was 3 miles. My
secondary goal of weight loss was not met, I stayed flat on weight. This
is probably because I wasn't very good about keeping a schedule. I let a
number of things interfere with my runs. However, I'm still down 10
pounds from where I started, so I'm not going to worry about the weight
as long as it falls this month.
Ed, thank you for getting in me in contact with my trainer, he's been very
Thank you for sharing your process.
July 5, 2008
Rocks Process and Bi-Polar
Could you please share your opinions with
respect to the TTP / Rocks processes and persons afflicted with Bipolar
disorder (a.k.a. manic depression). Can TTP/Rocks be helpful in the
management of this condition or is there a danger that a person with
this disorder, when practicing TTP, may find the intensity too great or
too traumatic and then be 'tipped over the edge' into an even more
serious mental condition.
Please note that I'm not suggesting that one
forgoes 'proper' medical diagnosis and treatment, but merely wondering
whether TTP/Rocks can play an additional role in the management of this
disorder. (and if so, how so?)
Any comments and opinions you may have
will be greatly appreciated.
The TTP toolkit, including the Rocks
Process are useful for person who wish to employ them in their own
personal explorations and growth.
These tools are not particularly
useful for "fixing" other people.
For example, in this case, you might
consider taking your feelings about <fixing someone else> to Tribe.
Bipolar Disorder is also a popular
name for poor-teacher-bored-student syndrome.
The Government School system
generally avoids treating this syndrome by firing teachers, and instead
treats the students with mood-altering Ritalin.
With 5% of students now on this
prescription drug, the public school system is providing an excellent
training for our increasingly medicinal society.
A chemical Solution
for students who complain
about poor teaching.
July 5, 2008
Works Through Abuse Issues
back in march i contacted you to ask advice
about memories i had from childhood regarding abuse.
i wanted to know if it was possible to remember things vividly when i
was 3 years old. I was was in a sorry state altogether and rather sad as i was preoccupied with sadness and my failure to trade well.
you immediately turned the question around and asked me , how i felt
about the memories.
this was a revelation.
i though long and hard about my sad childhood . I questioned my motives
for contacting you.
Then i had an absolutely huge ahh haa moment .
although there was lots of sadness for me as a child , i realised that
the discovery that i was abused at 3 was a revelation .
Suddenly i understood my anger ,sadness ,frustration and hate of the
self all made sense . suddenly i knew myself .
I went to a hypnotherapist for some regression therapy . I wanted to know
if what i thought had happened to me had happened to me . Although its
impossible to say for sure , she also told me it was the feelings that
I feel good . however i have a question if i may .
I always thought that my losing money in the markets was a result of
Fred bringing my attention to the unhappiness i always felt in my life .
However i now feel that Fred brought my attention to the past because my
trading was not right .
I am not sure if this all makes sense ,however
let me put it this way .I thought i couldn't trade because i had
problems that needed addressed from my childhood .
i now feel that i can
trade and the problems that Fred brought forward where to draw my
attention to my faulty trading methods . You see i ignored the trend and
bottom fished . I thought i was clever . n up-trends i prospered ,only to
give it all back in the corrections .
I think i have now created a system for myself that keeps me on the good
side .Sure there are stops and nothing is full proof but i feel a new
beginning and a peace inside me that just lets all the bad stuff go .I
am no longer concerned with bad history .I am now looking forward.
Sir ,i don,t know if any of this makes sense ,but only from embracing
your concepts in the tribe book was i able to really understand the
magnitude of the feelings i felt .
Really i just wanted to thank you from the bottom of my heart for
helping me really understand the meanings of those feelings .
experiencing them and embracing them ,"even if they where horrible ".was i able to understand the me . After 38 years of not really knowing myself
this is a miracle. How ever did you come to the conclusion that trading
was governed by feelings ?
i look forward to learning the whipsaw song and playing it with my band
.we all like Doc Watson .
I myself have great songs called "long and strong " and ten cent spread
.short your love and capitulation."
thank you very much .i feel good about everything
Thank you for sharing your process.
You might consider celebrating your
increasing self-awareness by capitalizing your I's.
In Recovery and in Trading
we come to celebrate setbacks
as part of the process.
July 4, 2008
In YouTube I find your video and "other related videos":
(1) hot sexy girl get RAPED in this video
(3) Turtle Trader Tokyo Speech
(4) Live Trade 04/16/07
What is the connection between your video and these videos?
The YouTube organization makes these
associations, perhaps by some sort of word-matching algorithm.
A whip-saw is a tree cutting device
featuring a long thin blade with a man on each end.
Other meanings of Whipsaw are: (1) a
quick counter trend in price and (2) a high-low poker player' situation
with a moderate hand in the middle of a betting war between two other
players who feel they have a lock on high and low.
The enormous popularity of internet
eroticism and the quirks of internet linking strategies may explain the
apparently tenuous connections between the videos.
The Whipsaw Song, with about 25,000
plays is doing quite well for a video with smiling people, a happy tune
and no naked women.
July 2, 2008
I hope life is treating you well.
Tonight I became absorbed watching a documentary on National Geographic
channel, focusing on the CCD (Colony collapse disorder) in honey bees.
While most people are obsessing over global warming, it seems to me that CCD is a far more serious and urgent problem looming over the world's
food supply. As the humble honey bee is responsible for providing us
with free pollination, the ramifications of a world without bees means
that pollination must be done manually or in greenhouse controlled
As all fruit and vegetables rely on bees this could
potentially cause food prices to soar and famine throughout the world to increase.
The scientists stated that 30% of bees in USA had vanished and
they were having to import Australian bees to do the pollination of
their crops. The latest developments resulted in the discovery of IAPV
(Israeli acute paralysis virus) which was found present in all the bees
in the diminishing colonies.
The virus was noted to be also present in
the imported Australian bees. They showed the "dance" that a worker bee
performs to show other bees where the best pollen could be located, but
noted that many worker bees went out searching for pollen and didn't
return, they presume some form of memory loss causes this.
I wonder what
this will do to the price of wheat, coffee, corn and other foods if this
problem escalates? Your whipsaw video was a nice way to put the rules
into plain and simple form, and was a little refresher for me to watch,
I have got some videos on
YouTube about one small project I did a while
back to make rubber inlet manifolds for a motorcycle restoration
has been very interesting lately, here in UK we are having some
incredible shorting opportunities in building, property and food stocks,
some of which are tumbling 10% every day and making easy profits is
tempered by a sense of shock at how drastic the collapse stories are
Even stocks which were star performers with great
businesses are turning into basket cases. It has the feel of a deeper
than average recession. Would like to hear your views on this bee
syndrome if you have one.
Manufacturing sites, such as you
demonstrate in your video, and as appear on the TV series "How It's
Made" are the essential productive elements in a society.
As the society matures, people
migrate away from manufacturing and toward government.
This acts to reduce productivity,
innovation and efficiency. It also attends inflation.
Similarly, bees are migrating away
from individual free colonies-in-the wild and toward strong central
government by bee-keepers.
Perhaps Apoidea is tuning in to
Getting Down to Bees-ness
July 2, 2008
Here's a picture for Independence Day 2008
I notice that in this particular
configuration, the leader at the top winds looking at the backsides of
the law enforcement officers.
July 1, 2008
Wall Street Journal Runs Low on News
I'm a reporter at The Wall Street Journal, and
I'm currently working on a book about the history of quantitative
finance and investing.
I'd love to set up an interview with you about
your trading history and ideas. It seems clear that you were one of the
first traders to tie together the computer and quantitative models to
The book will be published by Random House and will be targeted,
hopefully, at a broad audience. I'm trying to tell this history through
the stories of the people involved, showing how the market has changed
and how they adopted to those changes, or at times helped make them
By the way, I enjoyed The Whipsaw Song on YouTube. (Though I think you
might need a new bassist.)
Please let me know if you're available soon.
If you wish to interview me for a
book, you might first demonstrate some mastery of the ideas on this
Our bassist (formerly a dentist)
joins us regularly to play bluegrass benefits for elder-care and
hospital facilities in the greater Reno area. I do not know many
"new" bassists with these characteristics.
Tue, Jul 1,
Speculators play a crucial role in a free society, helping reduce market
volatility. Yet critics like John McCain scapegoat them constantly. It's
time these critics learned some basic economics.
Go here to read the full article:
Speculators help stabilize the
economy by speeding up the price discovery process.
To see how a lag can destabilize a
feedback processes, you can try to put a key in a keyhole wearing a
blindfold, and having a friend guide you verbally.
Operating an economy without
speculation is like trying to drive a car with a blindfold.
blame speculators for the price increases that their own political