Ed Seykota 2003-ed seykota position sizing in forex – Write for permission to reprint. Thank you for asking about a Workshop in Europe. I generally host Workshops in response to my perception of demand.
I hope that you are well and thank you for taking the time to provide a blog and answer questions. This may be a stupid question, but I feel like I’m missing something. Folks are always asking about indicators to determine the direction of a trend. Can’t you just look at a chart and see if it is trending or not? Why would you need an indicator to determine a trend? Also, what are your thoughts on pyramiding into a position?
Have you generally utilized this process in your trading? Thank you for raising this issue. You can take a chart with one-day bars, stick it on the wall, step back a few feet, determine the trend and enter orders accordingly. You might consider you still have to deal with risk control issues such as position sizing and stop loss levels.
People like to come up with fancy indicators and then convince their clients these indicators have “magic powers. The “magic” generally resides less in the exact formula you use and more in the ability to follow your formula when you don’t feel like it. Pyramiding, as with most trading methods, works better when you observe risk-control principles. Sending you an ‘ata pepper’ Ed! Thank you for sending me your ata pepper. I have been in trading for 4 years now.
I finally managed to establish my trading at the beginning of the 4th year. Apart from managing my limited funds, I have only a handful of clients. I am resolute to bring my trading career to the next level now. I have submitted a lot of applications for trading positions. Mostly returned no news and a few unsuccessful applications.