Ed Seykota
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| Edward Seykota | |
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| Born | August 7, 1946 |
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| Occupation | commodities trader |
Edward Arthur Seykota (born August 7, 1946) is a commodities trader, who earned B.Sc. degrees in both Electrical Engineering and Management from MIT, both in 1969. In 1970 he pioneered Systems trading by using early punch card computers to test ideas on trading the markets. Seykota resides in Incline Village-Crystal Bay, Nevada, on the north shore of Lake Tahoe.
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[edit] Career
As a young man he attended high school near The Hague, Netherlands and also lived in Voorburg.
[edit] Trading methods
Seykota is a trader who in 1970 pioneered a computerized trading system (now known as System trading) for the futures market for the brokerage house he and Michael Marcus were working for. Later, he decided to venture out on his own and manage a few of his client's accounts.
Much of Seykota's success was attributed to his development and utilization of computerized trading systems to which he first tested on a mainframe IBM computer. Later on, the brokerage house he had been working for adopted his system for their trades.
His interest in creating a computerized system was spawned after he read a letter by Richard Donchian on utilizing mechanical trend following systems for trading and also Donchian's 5 and 20 day moving average system. He was also inspired by the book Reminiscences of a Stock Operator. His first trading system was developed based on exponential moving averages.
Ed Seykota, Market Wizards
| “ | Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible. | ” |
Seykota improved this system over time. This did not mean that he changed the system, but rather he adapted the system to fit his trading style and preferences. With the initial version of the system being rigid, he later introduced more rules into the system in addition to pattern triggers and money management algorithms.
Another aspect of his success was his genuine love for trading and his optimistic demeanour. This factor sustained his efforts to continuously improve on his system although he never changed the response indicators of the system and instead fine tuned market stimuli.
[edit] Influence
Some of Ed's students have included Michael Marcus, David Druz, Jason Dekker, and Jason Russell of Salida Capital [1]
[edit] Notes
- ^ Covel, Michael (January 13, 2006). Learn from these up and coming traders. The Connors Group. Retrieved on 2006-11-17.
[edit] References
- Elbe, Susan (October 11, 2000). Seykota expects "No Excuses" for reading proficiency. Zephyr staff. University of Nevada, Reno. Retrieved on 2006-09-04.
- Troseth, Eric. "Can you forecast the market?", Work & Money, The Christian Science Monitor, October 20, 2003. Retrieved on 2006-09-04.
- Seykota, Ed; Dave Druz. "Determining Optimal Risk", Stocks & Commodities magazine, March 1993. Retrieved on 2006-09-04.
- Featured Speaker. TSAA 23rd Annual Conference. The Technical Securities Analyst Association of San Francisco (November 12, 2005). Retrieved on 2006-09-04.
[edit] Magazines
- Seykota, Ed. "MACD: sweet anticipation?", Futures magazine, March 1991. Retrieved on 2006-08-23.
- Hartle, Thom. "Ed Seykota Of Technical Tools", Stocks & Commodities magazine, August 1992. Retrieved on 2006-09-05.
- Collins, Daniel P.. "Turtles hatch", Futures magazine, November 2001. Retrieved on 2006-08-23.
[edit] External links
- Seykota's official home page (2006). Retrieved on 2006-09-04.
- Seykota's Trading Tribe website (2006). Retrieved on 2006-09-04.
- Seykota's Bernoulli challenge website (2006). Retrieved on 2006-09-04.
- Listing Seykota's "theory of radial momentum" (2006). Retrieved on 2006-09-04.
- Brief biography. Profile. Master Mind Trader (2006). Retrieved on 2006-04-12.
[edit] Further reading
- Schwager, Jack D. (1993). Market Wizards: Interviews with Top Traders. Collins. ISBN 0-88730-610-1.
- Covel, Michael W. (2005). Trend Following. Financial Times Prentice Hall. ISBN 0-13-134550-8.
