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العربية
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4 December

By Amir El Araby

Category: Star Traders

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Star Traders Edward Arthur Seykota: The Commodities Trader

Ed Seykota has was born in August, 1946 and has earned his Bachelor degree in Electrical Engineering from Massachusetts Institute of Technology in 1969. He has also earned the same degree in Management in same year.

Seykota has created trading systems in 1970 using early punched card computers in order to experience ideas on trading markets. He has tested and implemented his ideas using an IBM 360. This computerized system was known as (System Trading), which was dedicated for future markets and he sold it to the brokers. Seykota decided to trade his own money along with managing a few of his client’s accounts.

Originally, he wrote trend following systems with some pattern recognition and money management rules.  By 1988, one of his clients’ accounts was up 250,000% on a cash-on-cash basis.  Today it is reported that his daily trading efforts consist of the few minutes it takes him to run his computer programs and generate the new signals.

Ed attributes his success to good money management, his ability to cut losses and the technical analysis based systems he created.  He refers to fundamentals as “funny-mentals” explaining that the market discounts all publicly available information making it of little use. He was also famous for making profits in the commodities markets.

Students:

Michael Marcus, David Druz, Dean Giodano and Jason Dekker are the most famous traders and analysts who learn his methods.

The top five quotes from Ed Seykota:

Ed Seykota Quote 1:

“Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”

Ed Seykota Quote 2:

“Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”. However, if you catch on early, before others believe, you might have valuable “surprise-a-mentals”.”

Ed Seykota Quote 3:

“If you can’t measure it, you probably can’t manage it… Things you measure tend to improve.”

Ed Seykota Quote 4:

“The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.”

Ed Seykota Quote 5:

“There are old traders and there are bold traders, but there are very few old, bold traders.”

Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).