Ed Seykota’s Magic Trading System

Edward Arthur Seykota is a commodities trader who pioneered Systems trading by using early punched card computers to test ideas on trading the markets. He famously said:

" Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible."

Below are the points he has stressed on to make consistent profits.
1: Do not stress about whipsaws – one good trend pays for them all.
A whipsaw is when you enter a stock, but get stopped out quickly.  In a period of whipsaws, this may happen many times.  This can be frustrating to a trader or investor, and it may cause them to change their system.  But the fact is that one good trend will pay for all of these whipsaws, and if you change your system you lose the benefit of that!
2: When you Catch a Trend, ride it to the end.
Your system must be..

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