Systematic Trading research and development, with a flavour of Trend Following
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What can the Whipsaw Song by Ed Seykota teach you?

October 9th, 2009 · No Comments · Off-track, Trend Following

Ed Seykota is a hugely succesful trend follower. He also keeps a very low-profile. You will not see him on CNBC, so any sort of public appearance where he can distil some of his wisdom is a rare “gift”.

The main message of the song is to “stick to the rules” – which is a fundamental aspect of Automated Trading Systems whatever stratgy the system uses. Please enjoy the video below, the music is not bad either… ;-)

The 6 rules are:

  • Ride your Winners
  • Cut your Losses
  • Manage your Risk
  • Use Stops
  • Stick to the System
  • File the News

Sounds like universal Trading Truths, doesn’t it?

Note: Ed Seykota has been trading automatic trend following systems for over 30 years. His model account grew by over 10,000%. You can find more information on Seykota from his website and in the books Market Wizards by Schwager and Trend Following by Michael Covel.

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