December 1 - 14, 2008
<==
Previous
| Next ==>
Note: The intention of inclusion of charts in FAQ is
to illustrate trading principles - The appearance of a chart does not imply
any kind of indication or recommendation to buy, sell, hold or stay out
of any
positions. |
Questions
(Quotes from Ed in Red)
|
Answers |
Sunday,
December 14, 2008
YPROC -
Yearly Percent Rate Of Change
Hi Ed
I’m re-checking my understanding of your TSP project on trends and the
yearly rate of change calculation (YPROC) in particular. From your
readers feedback section you state the following
YPROC = 365.25
/ 20 * (P-AV20)/AV20
Where
YPROC = yearly percentage rate of change
AV = time constant (20 days/bars)
P = Price
365.25 = Annualizing number
I’m a bit confused why you use 365.25 as your annualizing number as this
is the actual number of days in a year, but there are 5 stock trading
days per week … so 5 trading days * 52 weeks = 260 trading days (or 260
bars on a daily chart) per year.
The time
constant used in the example of 20 days/bars (or one month) is in actual
trading days and hence excludes weekends. If this is the case then
perhaps the annualizing number could be 260 trading days to exclude
weekends as the time constant does or conversely the time constant could
be changed to include non-trading days and be changed to 28. |
Since the purpose of the runs is to
compare the bliss function for various parameter sets, the choice for an
annualizing number is arbitrary, as long as you use the same number in
all runs.
You might also note: The value, 20
days, in the 20-day exponential average does not strictly indicate a
number of days.
It is, more precisely a smoothing
constant.

The Tallest Girl
is still the tallest
even if you divide all the heights
by 365.25.
Clip:
http://www.northgeorgiastatefair.com/
Media%20Pics/Beauty%20Pageant.jpg |
Sunday,
December 14, 2008
Taking It To The Max
Hi Ed,
I reproduced all your results for Exponential and Support
and Resistance projects except Dr-Dn numbers and bliss because of that.
I just don't know how to calculate it. So, I cannot
complete optimization step for both projects. I sent this question to
you almost six months ago, and get the following answer from you,
"Drawdown is the dollar amount from the previous Peak to
the current rquity. Percent DD is the ratio of Drawdown to Peak."
I have tried to calculate, per:
Dr-Dn = max((Previous Highest Equity-current
Equity)/Previous Highest Equity)
but never get your numbers. Could you or somebody from
readers provide me an example of calculating Dr-Dn for Support and
Resistance project (case fast/slow 140/20 ). I would highly appreciate.
I spent a lot of time and cannot figure it out. |
The max function normally takes two
arguments.
Consider:
Y = max(a, b);
For a = 5 and b = 3,
Y = 5, the maximum of 5 and 3.
Your max function has only one
argument.
Here a pseudo-code suggestion:
loop
{
... read next day
... all_time_high = Max(all_time_high,
new_high);
... Dr_Dn = all_time_high - current price;
... DD_Current = Dr-Dn / all_time_high;
... DD = max(DD, DD_Current);
}
You might notice this way uses two
max functions. |
Sunday,
December 14, 2008
Willingness Testing
Hi Ed,
Ed Says: In TTP, we guide our interventions by
testing frequently for willingness.
I am wondering how you apply these principles in your own life and
relationships. |
In TTP we support people who are
willing to follow the principles and to do the work.
Sometimes people say they are
willing to do the work and then they do not do it and they do not make
progress.
Incorrigibles typically attempt to
draw us in to some type of co-dependent arrangement in which they can
blame us for their troubles.
Frequent willingness testing exposes
this gambit.
It is then up to us to notice any
attachment we have to fixing incorrigibles and to let them go on their
way.

Acquiring and Releasing
are essential elements
in drinking beer
and in managing associations.
Clip:
http://www.killsometime.com/Pictures/
Picture.asp?ID=499 |
Saturday,
December 13, 2008
Associate Projects
Ed,
I am excited and happy to hear from you. Thank you for your interest in
my results.
The main result I want to manifest is: I am the best dad, husband, son,
friend, trader, musician and person I can be. That result is a process,
not a destination. In the process I achieve results in harmony with my
great loves: mainly family, trading, and music.
Specific results, in harmony with my great loves, important to me now:
Family / Relationships Result: I listen to and validate others'
feelings, continue my tribe work, attend a workshop, and attend an IV
tribe meeting as a guest.
Trading Result: I complete a new trading system project(1) with your
guidance and feedback, online, in person, or in another manner you may
suggest.
Music Result: I record an album with my new band that inspires, excites,
connects and creates a meaningful soundtrack for my listeners' lives.
I attach a diagram of my thought process. Thank you for reading,
PS: I am inspired to complete your TSP exercises after an e-mail
exchange about learning C# with our tribe leader. He mentions your
systems run on C#. I get excited and imagine seeing this for myself.
Within 2 weeks, I become familiar with C# and I send you my completed
exercises. I already feel stronger and clearer about my trading,
programming and testing.
Projects I find interesting: -The unlinked TSP projects.
-A TSP you propose.
-The difference between theoretical heat, backtest heat, and live heat.
-Thoughts on buy signals generated for inverse index ETFs in long-only
equity systems
-Examples of major breakouts that never pull back to the original entry
point. |
You enumerate various projects:
family; trading; music.
You might consider working on these
projects every day and noticing any feelings that come up as
impediments.
You might then take these feelings
to Tribe or report them to this site.
If you wish to publish a study to
this site, send me a draft of it. |
Saturday,
December 13, 2008
Wants to Overcome Shyness
Hi Ed,
I have always been fascinated by you since reading about you in Market
Wizards and how you became a master of yourself. I recently finished
reading your book and find it very interesting how the TT process works.
I am kind of a private person and feel funny talking
about personal things in front of others or even at a restaurant while
chatting with a friend I feel very uncomfortable talking while the
waiter is standing there. Maybe that's something I need to explore now
that I am writing this but was wondering how you would recommend
overcoming this fear of talking about myself or personal problems
in front of a group of strangers.
I have read Toxic Parents (a book you recommended) and
grew up with constant criticism from my father. I am guessing that could
be a factor contributing to this.
I would appreciate to hear your feedback.
|
In our Tribe work, we do not attempt
to "overcome" feelings.
We explore them, experience them,
develop insights and come into harmony with their positive intentions.

One Positive Intention of Fear
is risk control
especially when you
hear that train a commin'.
Clip:
http://www.newsline.dot.state.mn.us/
images/01/aug/29-RRinspector.jpg |
Friday,
December 12, 2008
Elliot
Waves
see:
previous
Dear Chief Ed,
Thank you...
haven't laughed so hard in weeks ...
p.s. petroleum
charts not updating... |
Thanks for your encouragement and
for the catch about the Chart Server. |
December 12,
2008
Wants to
Help Extend TSP
Ed,
As a trader, I found the ideas in the TSP project of great value. I used
to check the site often for for the TSP updates. I also notice that the
last update was sometime in 2006. I do not know whether you intend to go
ahead with the next topics eventually.
In case you
intend to do that, If there is a way I can contribute , I would consider
that a value addition. In my opinion, the Trading Tribe website has a
self-selecting audience and I consider myself as a generic of this pool
of visitors to your site. I have a feeling that the completion of TSP
would be beneficial for aspiring traders who are genuinely looking for
guidance. Do let me know what you think about this.
I see the Trading Tribe website and the TT book as a gift from you. It
reminds me of "The Phantom's Gift" by someone called Phantom of the
Pits.
It is possible
that you may not be fully aware of the impact the TT site can have on
people. I sincerely hope that the website eventually has all that you
wish to share.
Thanks
|
Thank you for your encouragement.
I am working with a number of
contributors who are preparing articles for publication on this site.
|
Thursday, December 11, 2008
Youth vs.
Old Age
Ed,
You might
enjoy this.
video |
The crowd generally favors young and
strong.
The pros remember to bet on old and
sneaky.

Young and Old
are rather subjective views.
Clip:
http://www.1000ventures.com/design_elements/
sponsored/test_woman_young-old_a.JPG |
Thursday,
December 11, 2008
Re:
Positive and Negative Emotions
see
previous
Ed,
I see what you
mean. However, such people may show reticence to experience and
/ or express fear and anger and tend may have problems managing
boundaries and risk |
Yes.
In Tribe Meetings, we assist each
other in developing the willingness to experience our feelings. |
Thursday,
December 11, 2008
Boundaries
Ed,
Are trading system risk management parameters
actually boundaries for the trader's interaction with a market?
Is sticking with a trading system actually a form of boundary
management? |
A mechanical trading system can act
as an interface between the trader and the markets.
Sticking to the system is like
honoring the interface agreement.
|
Thursday,
December 11, 2008
Mixing
Messages
Ed,
I want to
learn from you how to trade and quit my job and do trading. That is my
goal. But I am so far from it and can only wish you a long time to live
and be active in trading. :) |
OK. OK. |
Thursday,
December 11, 2008
Wants to
Track Contributors
Hello Ed,
For obvious reasons you leave personal information from emailers out of
FAQ.
But wouldn’t it be more interesting for many readers if a fictitious ID
or
unique serial nr. would be attached to each individual who emails you?
If such ID appears at the bottom of a person’s emails, one could Google
the ID
and follow someone’s story in FAQ through time.
Currently I often read stories from people and end up wondering how they
fared
afterward...
Kind regards, |
Thank you for your suggestion.
You might consider taking your
feelings about <tracking people> to Tribe. |
Wednesday,
December 10, 2008
Extending
TSP
Ed,
I received the
TT book and delighted to read it! You rightly mention in
the book that as one reads, one is likely to daydream. Happens to me. As
I read, I take notes and at one point, I relive my last trade day-by-day
and recollect all emotions in tranquility.
I understand the true meaning
of every emotion being a good intention! I understand how 'dumb' actions
like buying a stock on a decline, adding more on further decline and
putting whole capital on one trade, were all motivated by good intentions
of getting value-price, building large position and maximizing the
leverage, respectively.
And with this perspective I see how these
well-intentioned actions could cause failure. Suddenly, Ed and Fred see
eye to eye! The three to five pages that talk about trading are all one
needs to know.
Interesting, I discover the exact thoughts a day before
the book came in the mail. So the words from the book confirm rather than
perplex!
What an AHA! I am writing code and testing the exp lag and SR
systems. Completed exp lag in python a while ago. Today wrote the SR
system signals part. These, along with the discussion of Risk management
on your webpage are best resources anyone can ask for.
I realize now
that Lag, SR are only some ways to systematize the core trend trading
rules - buy box breakouts (as your father teaches you according to
Covel's book-notes) and make small bets.
If the bets lose, cut short. If
they win, take as long as you can ride them. These are the best
information on trading, what can come from outside. The remaining has to
come from inside.
TTP helps there.
So, very sweet. Many many thanks. |
Thank you for sharing your
experience and for your encouragement. |
Wednesday,
December 10, 2008
Wants
to Understand
Dear Sirs, I am new to trend
following.
I am currently stuck on system development and
testing. My expertise in this area, especially programming, is minimal
Any input as far as platform recommendations or books (or series of) to
get up to speed is appreciated.
Also, through my reading I note most
trading being done in the commodity markets. I currently trade
stocks / indices. Any reading recommendations as to understanding the
mechanical differences of trading these instruments is also appreciated.
Thanks for your time and any input. |
You might consider taking your
feelings about <understanding> to Tribe.

If only you were smart enough
to perceive what I am saying
you would have to agree with me.
Clip:
http://itodyaso.wordpress.com/tag/hell/ |
Wednesday,
December 10, 2008
Back-Testing
Hi Ed,
Thank you for the conversation we had by phone over the Thanksgiving
holidays. I really appreciate your insight and ideas on how I might
progress to acquire clients.
I have already contacted a potential client
and am working with him to fully understand his needs so that I can best
serve him.
Ed, in the conversation you and I had over the holidays, we covered
several topics, however 2 topics that you mentioned and we did not
discuss in depth are the steps to take to limit the affect of start date
dependency and equity dependency on my back-testing research methodology.
What steps can I take, or items do I need to be aware of, when
performing my back-testing research to limit the affect of start date and
equity dependence on my research results?
Thanks again for all of your help.
|
Back-testing does limit start-date
or starting-equity dependency - it exposes them.
|
Tuesday,
December 9, 2008
Amazing
Billiard Shot - Video
Ed,
This is the
coolest billiard shot ever!
video |
Thank you for the video.
Sometimes a complex design actually
works. |
Tuesday, December 9, 2008
Good
Control - Video
Ed,
You might
enjoy this.
Finally, someone’s figured out a useful mission for the cab-over chain
saws!
video |
Thank you for the video.
Using a helicopter to open beer
bottles seems about in line with standard government efficiency
standards. |
Tuesday,
December 9, 2008
Almost Home
- Song and Video
Ed,
What a great song.....
"Man I wish
you'd just left me alone
'Cause I was almost home..."
http://www.youtube.com/watch?v=MtqxY3t74To
|
Thank you for the URL.
I wonder what is the point of
connection you have with this song. |
Tuesday,
December 9, 2008
Intervention
Hi Ed!
At our latest Trading Tribe we had three new members. We went from 3 to
6 people and it feels good.
I am still a little bit hesitant to encourage people on the hot seat. When I
read in the FAQ pages it seems the tribe leader is often very active.
In
our tribe we are mostly receiving without interfering except when some
form is obvious. Do you consider the active part of the receivers very
important?
We are active receivers but we are not giving any particular
direction to the hot seat. One thing is good about it - that we are not
trying to "fix" the hot seat. We follow the hot seat in his/her direction
and we think it has worked out well.
We consider that we don't have to
change what is working. I actually received an "AHA!" right now. It is
similar to the trading model. I have one that is okay.
It is working out
fairly well but still I look for something better. The same way with the
tribe. What if we are missing some essential element that makes us more
effective and progressing.
Best regards, |
Thank you for sharing your process.
You might consider taking your
feelings about <intervention> to Tribe.

This is an intervention ...
Give me the bath products.
I don't have a problem.
Get away from me!
In TTP, we guide our interventions
by testing frequently
for willingness.
Clip:
http://www.nataliedee.com/030808/
bath-product-intervention.jpg |
Monday,
December 8, 2008
Stress and Boredom
Dear Mr Seykota,
Thank you for your response. As I am quite young, and yet to really
achieve significant in my life, I am not entirely sure what my skills
are exactly as yet.
All that I do know is that ever since I can
remember, I have maintained a rather stubborn belief that whatever might
be inside of me, I possess the ability to achieve whatever I commit my
mind fully towards.
The service that I have dedicated my energy towards
over the past 11 months, and will continue to do so with an unwavering
persistence, is to learn, improve, and do the right things in
approaching my goal.
I will continue to work on myself, to obtain a
state of mind most conducive to learning about the movements in the
markets, as well to producing a stress-free trading experience.
My
biggest obstacle in trading, which remains to this day, has been my high
level of self-belief and competitiveness, where my biggest challenges
haven't been with regard to market analysis, but rather altering my
beliefs to put myself more in tune with the opportunities available in
the flow of the markets I choose to trade.
Essentially, my energy has be
devoted to being in a constant state of learning, and moving
progressively closer towards my goal.
I have been willing to change a
lot of my preconceived notions, and have at times been concerned that
I've been meddling with my mind too much (so much so that I do feel like
a sponge sometimes, if that makes any sense), however I am prepared to
do whatever it takes, and I if I am mistaken with some approach and am
always willing to alter my course.
In some ways this has been similar to
my trading of late, where I've been, at times, too open to admitting a
trade isn't working and changing course too quickly - sometimes it pays
off, other times not so well.
I think it's important to note that my trading is largely discretionary,
and I am constantly using different methods based upon my analysis of
the market conditions.
I have been looking at live charts for 8-12 hours
a day since January, in addition to everything else, so I do feel
somewhat confident in my ability to identify the overall conditions -
but perhaps I am wrong in my sentiments here. With regards to market
analysis, I've never been comfortable with using what is written in
commonplace textbooks, and even if someone such as yourself is providing
market analysis insight, I do feel the need to investigate it, and alter
it somewhat to make myself comfortable with the method (unless I am
bored; this is an emotion I struggle with a lot in life as well, but I
won't get into that issue).
I've always been like this, especially when
it comes to mathematical proofs, and philosophical ideas, and I guess
it's translated to my trading approach.
I'm not entirely sure if this is the direction of response your were
looking for, and if I haven't expressed myself clearly please let me
know how I can address your question better.
Thank you so much for your time.
Kindest Regards,
|
Thank you for sharing your process.
You might consider taking your
feelings about <stress> and <boredom> to Tribe.

While You are Experiencing Boredom
one thing you can do
is to notice
its positive intention.
Clip:
http://www.helpmyhurt.com/wp-content/uploads/2008/05/breastfeeding-nc.jpg
|
Monday,
December 8, 2008
Breasts, Management and Embarassment
Ed,
I report a Rock process which, as I see it, did not work.
After I work on the feeling “I feel angry due to xxx” two weeks ago, I
feel a pressure on my stomach for several days. I know the feeling well
and I deeply dislike it: it is “fear”. I bring it to the Hotseat. I
quickly develop a form (bending my wrists and ducking).
As I do not
progress through this form, other forms appear: “turning around until I
feel dizzy”, “applauding” and “I do not reach the feeling” (feels like
swimming in an oil barrel).
My Tribe encourages me to work through all
forms; after I complete all of them, I work on the “fear” form. I see
myself as a little child, maybe 2 years old or younger; the situation
includes a person which I love and large female breasts.
Curiously, the
previous day I talk to a member of other Tribe, who comments how they
carry out the Rock process: as an example, he mentions a Process in
which also large female breasts played a substantial role.
During the hot seat, I revive the stress of the situation and my
helplessness.
My Tribe members did not carry out a Rock process yet. I
find myself in the not recommendable situation of being on the Hotseat
and telling my Tribe what to do…
I ask them to lead me through several events in which I felt the same
feeling. I find them and recognize the futility of my reactions. In
these situations, I concede what the others want and do not fight to
defend my opinion. I see how the Rock rules my life and feel an urge to
get rid of it. I look for the donor of the Rock: it is absolutely clear
who it is.
Before I give the Rock back, I instruct my Tribe to write the resources
which I want to have: To say no, to fight back, to refuse cordially, to
be aggressive and show my anger, and also to concede. I for-give the
Rock to the donor and receive the new resources. As I do that, I realize
that even a baby can bite, scratch or cry until the aggressor leaves him
in peace. Before for-giving the Rock, I was not aware of these
possibilities.
My Tribe provides me the new resources. I test them in my head in all
situations which I remember (4 or 5) and it works very well. I feel a
deep vibration in both wrists and hands, lasting for several seconds: it
is a bizarre feeling. After that, I am exhausted. I repeat all the
forms: They are really joyful and I can integrate them into a single
form. Each time I reproduce a form, I develop the composite and feel
released from tension.
In this process, we use several elements of the Rock process, but not
others: I use the Form and freeze it to find the original problem. I
find several situations in which I apply the Rock. I identify the donor
and see how the Rock rules my life. I for-give the Rock and learn other
resources.
But I do not receive the resources as an object but as
recommendations and we do not do role playing. I like this part, because
I really do not want my Tribe to learn about the situation which
generates the Rock.
The following week I feel uncertain about the success of the process. I
face some situations in which I also concede and do not act in my best
interest.
I still feel the “fear” pressure on my stomach. I still do not
like it. A week after the Hotseat, in our next meeting, I decide to
revisit the feeling. It is the same form, bending my wrists and ducking,
as intense and ugly as before.
This time, however, I have other memories
including my father hitting me and feeling lonely and afraid as a child.
I do not “see” the previous event with the large breasts. I work on the
form again, until I enjoy it. The next morning I feel lonely and afraid.
My wife, seeing my desolation, comforts me. I feel much better, but also
realize how she medicates my feelings.
I go to the cellar and, in
darkness, try to feel as lonely and afraid as possible. I want to
remember this feeling to work on it in the next Tribe meeting.
I read about the fast and substantial results of Rock process in other
Tribes and observe that, this time and for me, it did not work.
I appreciate, as always, your insights.
Per your comment “You want to start a religion”: I rather want a Tribe
of 6 or 7 members who are really committed and willing to reach their
highest potential and to help me reaching mine.
Per visit to IV: I will be in (other country) and not able to visit you
between January 29 and February 12. |
Thank you for sharing your process.
You might consider taking your
feelings about <wanting to manage the process> and <wanting to hide the
details> to Tribe.
TTP does not require revealing
specific details.

Mother and Child
connect naturally
in many important ways.
Clip:
http://www.helpmyhurt.com/wp-content/
uploads/2008/05/breastfeeding-nc.jpg |
Sunday,
December 7, 2008
Nice Catch - Funny Video
Ed,
I just HAD to pass this along - I know
I have a twisted sense of humor sometimes, but, I think this is funny
and wanted to share a smile or giggle or lol or LOL or ROFLOL
canyoudothis.wmv |
Yes. People who find their own
special gift, who practice it until they get it right, and who dare to
share it with others can accomplish amazing things. |
Sunday, December 7, 2008
Catalog of Emotions
Ed,
TTP handles all this. Based on years of tribe, this seems a fairly
accurate depiction of typical layers of knots.
http://www.scientologyhandbook.org/FULL.HTM |
Thank you for sharing your insights. |
Saturday,
December 6, 2008
Important
Reminder for Men - Funny Video
Ed,
With the
holidays coming up, go to this site for a refresher in shopping
fundamentals.
http://creativity-online.com/work/view?seed=5e32d548
|
OK. Thanks for the URL. |
Friday,
December 5, 2008
Wants to Help Extend TSP
Dear Ed,
I'm a member of the local trading tribe since October. I attend tribe
meetings to be the best father and husband I can be. I'm also determined
to live right livelihood, to improve my trading skills and to improve my
ability to express my emotions through my music.
Although I know of your website for several years, I'm not ready to be a
student until July 2008. Thank you, and FAQ contributors, for providing
me with an excellent trading, psychology and personal growth
encyclopedia of nearly 5,000 printed pages!
I notice strong emotions within myself. I find this new awareness of
emotions is sometimes illuminating, sometimes exhilarating and sometimes
confusing. I am serially remembering previously forgotten childhood
events. I notice positive change in myself. I make new contacts for help
along my journey, something I hesitate to do before. My 20 month old son
always shares emotions and never hesitates to ask for help.
I'm applying to the Associates Program with the intention of
collaborating with you directly. In return I offer my help to advance
the TSP work. I attach my bio, my results summary, and Excel & C# code
for all of the currently active TSP exercises. Completing the exercises
is challenging and fun.
Thank you for sharing your knowledge and music. |
I wonder if you could tell me a little more
about some specific goal or result
you would like to manifest for yourself. |
Friday,
December 5, 2008
Daddy's Little Girl - Shouts Out Her Love
Ed,
Maybe you remember our conversation about shouting children. My
daughter, our second child and 8 years old, has frequently tempers, and
yesterday, after our conversation, she starts shouting again.
I used to
shout back “Do not shout that way”!, or send her out to the garden.
After starting TTP, I used to accept her shouting and her anger and let
her get her steam off. This time, I remember your advice and decide to
support her in shouting, but first I ask her if she agrees: to do TTP
without explicit consent is like extracting a tooth without asking the
patient. She agrees and shouts louder.
As I encourage her, her form changes to “hit daddy”. She starts hitting
me with her tiny, lovely fists. I encourage her further. I realize that
she has a lot of energy for her age. It goes “Go ahaed, yes, fine, ouch,
ouch, yes, crank it, ouch ouch, fine, world class (oh God let her spare
my testicles), yes, yes, ouch ouch”. I realize that this poor child has
been waiting for years to release her anger at me: now, more mature and
experienced, I am sorry of things I did to “educate” her and to teach
her manners…
After a while, she says “Daddy, I like this hitting you!” and hits me
further. After an eternity, she stops and sits down. I feel the release
of tension in my own body, exactly the same as during a process, when
Hotseat completes a form. I assume that she is ready.
Later, this shy, contact-avoiding and under-demonstrative child hugs me
and says “daddy, I love you” (in fact, “ich mag dich”, not “Ich liebe
dich”). I am deeply surprised. When I bring her to bed, she kisses me,
spontaneously, on my forehead: a novum.
Ed, I love this new way! Thank you for sharing TTP with us! |
Thank you for
sharing your process.

Father and Daughter
an amazing opportunity for both
to learn, to teach, to grow
and to love.
Clip:
http://www.termlifeoptions.com/ |
Thursday,
December 4, 2008
Monster
Crash - Comedy Video
Ed,
You
may find this amusing.
http://www.youtube.com/watch?v=28I0JK0byLU |
Thank you for the URL. |
Wednesday,
December 3, 2008
Legal Drama
Hi Ed,
I am a Workshop graduate (5/04 and 1/06),
and I started the [City] Trading Tribe. I am also fortunate
enough to participate at two Breathwork sessions (12/04, 8/06) at your
house, and they are all unforgettable experiences of my life.
Many
thanks. I am writing to ask
1) if you can let me know some info and
2)
if you would consider some proposal our Tribe has for you due to a
crisis situation we are facing.
Our Tribe has grown to as many as 11
members earlier this year, before the financial crisis forces some
members to move out of the city/country.
Right now we have 7, with a new one planning to join. We
meet every Wed evening. One of the members is gracious enough to let us use his office.
He is also a Workshop graduate (10/07). After attending the Workshop
he told me that you have participants signed a legal document to
acknowledge that their participation is fully voluntary, and will not
sue for any possible damage or liability.
He asked another member
who is also a Workshop graduate (1/07, 7/08), to
contact you for a copy of that document, so that after some minor
changes we can sign it as well and remove the bank or person from any
liability.
He then gave the 2-page documents for the bank's
preferred lawyers to review, and they gave him back a 6-page document
with some additional clauses.
That was several months ago. We had our
meeting tonight, and he informed us that he just received the bill
from the lawyer. Shockingly, the charge was $19,193.40 (after a 10%
"discount") for 36.7 hours of work.
Obviously, nineteen thousand is
orders of magnitude out of the range I'd expect for reviewing a 2-page
document, and had we known the cost, we would have simply moved to
another venue.
I notice that it is our collective intention that leads
us to this result. (Yes, this triggers LOTS of feelings) I am aware that
we are responsible for everything that happened. I also notice that
there is no free lunch and we need to pay for the service.
(When I first
hear the figure, I feel stunned but somewhat "ridiculously funny." That
changes after it sinks to mind that we need to foot the bill, and I then
feel my head very heavy and my eyebrows tighten (my natural response
when I don't like something), even a bit upset and "trapped."
Interestingly, this seems to resemble our country's current financial
situation, where the figures from the government bailouts seem stunning
and "ridiculously funny" - until it hits that as taxpayer I am footing
the bill)
When I set up the Tribe, I adhere to what you say on FAQ
that it is 1) not-for-profit, 2) absolutely free to participants, and 3)
at the risk of the presenters and participants.
Now, fighting for our
Tribe's survival and continual operation, here are my questions:
1.
Instead of "absolutely free", is it OK for us to continue our meeting at
the [City] Tribe if we charge members, say $20 per meeting, in order to
cover the legal fee?
2. Is it possible for you to provide me with the
name and a contact person of the firm where you get your legal document?
And would you mind letting me know how much do they charge you? I'd like
to find out what I can expect as a reasonable figure for this kind of
service.
3. Our group discusses transforming this crisis to an
opportunity, as we can apply real-time what we've learned (e.g.
snapshots), since now we all have a clear group snapshot of raising the
money to pay the bill.
We wonder if you would consider some business
proposal such as if you are willing to come to [City] to either
conduct a tribe meeting and/or host a Workshop?
The former would be just
an afternoon or an evening, while the latter over the weekend under
similar format as Reno's. In both cases, we would charge participants to
help us pay off the legal fee.
To us, this is not for profit but for
survival, and netting out cost and fees, it is for you to keep all the
excesses if any.
4. We also wonder if we hold any fund-raising activity,
may we have your permission to disclose that the money is for the [City]
Trading Tribe?
I greatly appreciate your answers, feedback, and
consideration of our proposal. Please feel free to call me at any time.
Alternatively, is it OK if I call you to
follow up? If so, please let me know when's a good time? Many, many thanks. |
Thank you for sharing your process.
You might consider taking your
feelings about <uncertainty> and <intimacy> to Tribe.
When you medicate your feelings
about uncertainty and intimacy with legal agreements, you risk elevating
your issue into legal drama.
Lawyers, in general, don't use
SVO-p, don't connect on a feelings level and are useful mostly in
negotiating the amount of legal control one party has over another.
At this point, as I read your
account, the issue seems to revolve around the agreements your friend
has with the bank. I am not clear how any of this is your problem.
Let me know how this one evolves.

Ducks Strut Around
and quack about this and that,
and then present their bills.
Perhaps they learn
how to do this
in law school.
Clip:
http://www.lifesolutions.us/images/
duck_with_money_in_bill_photo.jpg |
Wednesday,
December 3, 2008
FireFox and Explorer
A reader
notes tiny-print effect which Ed does not observe. Ed may be
using Internet Explorer. I attach a screenshot of FAQ in FireFox and
IE. For scale, a DOS window is in the background. I paste below the line of HTML that excites this mode. It occurs many times in FAQ
pages. Note in particular "font-size:x-small."
<td valign="top" align="left" width="296" style="font-family: arial,sans-serif;
color: #000; font-size:x-small; text-decoration:none" height="35">
|
Thank you for the catch.
I wonder if you have a patch for
this code. |
Wednesday,
December 3, 2008
Wants To Work and Learn
Hello Ed,
I know this email does not have any sense but I guess I will give it a
try anyway.
I am 22 years old guy from [Country]. I have been studying in College here
in the United States for almost 2 years but I unfortunately I cannot
continue doing it because of some scholarship issue.
I started then to try to be a day trader, it is almost a month and I
really like it.
I found out about you in many many books and I think your approach to
trading is the best in my opinion.
What I am asking in this email it is that I really would like to work
for you or maybe, to learn from you.
One thing I know is that being a professional player taught me that the
greatest possible option in life is that to learn from the best in any
field you try to go.
I don't now what is current situation of office and where you are
situated because all the research on the Internet are old and you
probably will not answer to my email, but I really like the world of
trading and I feel I can learn fast.
I attach my resume in case you wish to give it a look. |
I wonder if you can be more specific
about what you wish to learn and what kind of work you wish to do. |
Tuesday,
December 2, 2008
Trading and Mentorship
Hey Ed,
I found your story inspiring.
I was drawn to your psychological approach to trading and life,
primarily.
The belief system is a sacred component defining success and
failure in us all. You understood that years ago.
Historical reactions
(emotional) structured through experience carry themselves into our
future endeavors, so as to diminish the authenticity of our current
actions. So, we are really just some holographic aspect of our past - our
old self - operating in an ever-changing, complex and uncertain reality.
It's our old thinking that is utilized as an interpreting medium to
derive meaning and understanding, creating a false-sense of who we are,
but more importantly acting to keep us contained, limited and safe.
These principles of reaction and interpretation, pattern behavior and
conscious evaluation of myself, dominate my trading system and feed my
primary algorithms which are based on quantitative strategies and
broader theme's.
I'm 29, from [City], and have been trading for several years. I
made my first investment at 18 and have since grown and expanded into
this passion.
I'm looking for mentorship at this point in my life. I'm
looking for additional structured guidance from an experienced Pro.
I understand you offer Workshops annually. Would you have any interest
in helping me outside of this, in any way?
I have a unique background and interesting life experiences, and lots of
potential that I want to actualize.
If you have any interest in this endeavor or have any helpful
suggestions, I would be grateful to hear from you.
Thanks for your time and energy. |
OK.
You might consider starting your
mentorship by defining something
definite that you like to do and that you wish to share with others.
|
Tuesday,
December 2, 2008
Positive
Intention of Worthlessness
Ed,
I enter a trade. The trade goes against me. I feel
upset. I feel that
I can not make good decisions. I feel worthless.
I try to search for a positive intention in this feeling of
worthlessness.
I observe that if one is worthless and cannot make good decisions, it
doesn't matter what decisions one makes, or if he makes decisions at
all. It absolves him of responsibility for his decisions. Feeling of
worthlessness justifies inaction and staying with a losing trade.
I look forward to my first TTP meeting this Thursday. |
Thank you for sharing your process.
One positive intention of
worthlessness is to motivate a migration to another method.
Here are some examples of things
trending toward worthlessness. Currently, you can buy ...

100,000 Rupiah for $11

500,000 Dong for $31

10,000,000 Dollars for $4

50,000 Rial for $5

50,000 Dobra for $3

10000 Franc for $2
Clips: www.portfolio.com |
Tuesday,
December 2, 2008
Wants to Join IVTT
Dear Mr. Seykota,
I am a trader/investor living in [City]. I recently found
your Trading Tribe website. I am reviewing the FAQ and have read the
excerpts of your Trading Tribe Book. I am very interested in your
comments about "Relentless Validation" and "Feelings in Modern Culture"
(page 15). I am interested in your Incline Village Trading Tribe because
I feel isolated and in need of community. I am also interested in
finding a trading coach because I think I need a new methodology
(system).
I have been trading for over 20 years with mixed results. I am still
struggling with some of the same problems I had in the early days of my
career.
My CV:
BA, mathematics, [University], 1985
Market maker, [Exchange], 1987-1993
Options trader, [Firm], 1993-1995
independent trader/investor, 1995-present
Thank you for your attention and feedback, |
Yes. I am currently extending IVTT
to include presentations on systems design.
If you can commit to attending a
dozen meetings,
and to working on yourself and on
projects between meetings, your association might be beneficial to all. |
Monday,
December 1, 2008
Rising Trend in the Use of Force
Ed,
On Friday, October 31, 2008 Ed replies "you might consider taking your
feelings about <your father> to Tribe".
I am talking of a socio-political trend and your answer regards my
feelings about my father. Mind your head! |
Your statement
from October 31:
I appreciate any tip.
Thank you for
following up and demonstrating your appreciation.
I wonder if
the phrase you use, "Mind your head," might be something you recall your father
saying. |
Monday,
December 1, 2008
Rocks Process
Ed,
In my email from Saturday, November 8, 2008 (Our Tribe Rocks), I
described our improvised version of the Rock process. We do not use some
components of it like role playing or strongly irritating Hotseat during
the evocation of the situation.
In our version, everything happens in the sender's head: I do not even know the origin of its problems. However,
I can report that also our version of the Rock process is effective.
Most likely the sender's desire to change and our intention to support the
process are decisive for results.
The issue was <Insecurity>. It has been 2 weeks since the meeting,
and Hotseat reports a clear change in behavior. In recent stress
situations, Hotseat shows an automatic and satisfying response, showing
limits to other people and not getting involved in drama.
In more severe
confrontations, Hotseat reports “seeing it coming”, making a reflective
pause and thinking about the situation before applying a satisfying
response. I see that Hotseat needs time to implement automatic and
satisfying responses in different situations.
Hotseat has suffered from a somatoform disorder
http://en.wikipedia.org/wiki/Somatoform
for more than 10 years. This disease is very difficult to treat: in
about 80% of the patients, therapy does not lead to improvement.
Hotseat
has been in treatment as inpatient and also participated at
psychotherapy for about 2 years without improvement. In the third
meeting, Hotseat sees the origin of the problem and, more important, it
realizes that the symptoms are very old friends and it is very difficult
to separate from them.
This insight is incompatible with most
psychological theories which I know. Hotseat reports that in the last 2
weeks it had substantially less pain; it also identifies the situations
which result in pain surging and can (quote) “reject the pain as an old,
but not good friend”.
I discuss Hotseat and its symptoms with the vice director of our Dept.
of Psychiatry, an open, nice and intelligent guy with a lot of
integrity. He is surprised about the “case” and wants to read your book.
I ride this trend until its end. |
Thank you for sharing your process.
I am happy to see TTP working its
way into mainline therapeutic environments as a compliment to other
methods.
I encourage you to continue pressing
forward with your explorations and innovations. |
Monday,
December 1, 2008
Critical Damping
Hi Ed,
Thank you for the Essentials Card: it's a great device to remind me
what to focus on.
I wonder if you have news about the new book you are
working on ... I find very interesting the question and answer dated
October 26, " How Much Is Too Much Speculation": I experience an AhA
reading about tracking servo. Maybe there's space to deepen this issue.
When you say: "The most efficient design for a tracking servo generally
includes some overshoot. For more on this, look up "critical damping."
I think that a critical damped system return to the equilibrium point
in the shortest amount of time and without oscillation.
In this way, no
overshoot happens. Instead, it can be referred to an under-dumped system.
Do you agree? As always I appreciate a lot your availability, that
encourage me to give my little contribution. |
In the design of servos, such as
thermostats and tracking devices, the optimal amount of overshoot
depends upon your definition of the "objective function."
Similarly, in trading systems
design, the optimal parameter set depends upon your definition of the
"bliss function."

Step Response
at various damping factors
Clip:
http://www.ae.utexas.edu/courses/ase463q/
design_pages/fall02/AWE_web/secondorder.htm |
|