Ed Seykota’s Trading Style Part-IV

In Continuation with previous 2 article
Ed Seykota’s Trading Style Part-I
Ed Seykota’s Trading Style Part-II
Ed Seykota’s Trading Style Part-III

Embrace Whipsaws

• Trading Systems don’t eliminate whipsaws. They just include them as part of the process.

Do Not Predict Or Anticipate

• A computer can follow a system and place orders without making predictions or feeling anticipation. Predictions and anticipations are objects you create. These objects may interfere with sticking to your system.

Take Care of Your Emotions

• Sometimes I trade entirely off the mechanical part, sometimes I override the signals based on strong feelings, and sometimes I just quit altogether. The immediate trading result of this jumping around is probably breakeven to somewhat negative.
• However, if I didn’t allow myself the freedom to discharge my creative side, it might build up to some kind of blowout. Striking a workable ecology seems to promote trading longevity, which is one key to success.
• Gut feel is important. If ignored, it may come out in subtle ways by coloring your logic. It can be dealt with
  through meditation and reflection

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