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Ed Seykota's Principles

Overview

A pioneer of computerized trend-following systems.

Style

Trend following, systematic trading, risk control

Firm

Independent trader

Period

1946-

Ed Seykota

Principles

Repeatable rules that beginners can study and adapt.

Applicable principles

Follow trends rather than predicting tops and bottoms.

Keep risk per trade small.

Accept losing streaks as part of the system.

Trader psychology is part of the edge.

Turn these principles into a pre-investment checklist. If an idea cannot pass the checklist, staying out is often better than forcing action.