Ed, or rather Edward Seykota, earned a reputation as an entrepreneur with top-notch qualifications, professional talent and a systematic approach to business. In the circles of stock market speculators, he was famous as a pioneer in the field of electronic trading systems. In fact, the specialist began using computers to test trading algorithms while they were still working on hole cards. In recent years, he has been actively involved in trading in the commodity market, but the methods he has developed are equally effective in trading with currencies and shares.
Trader Ed Seicot is not as recognizable as, say, Warren Buffett or George Soros – probably because of this the media does not pay enough attention to his biography. In any case, it is known that he was born on August 7, 1946 and attended school near The Hague in the Netherlands. He also lived for a time in Wurburg, Netherlands, before enrolling at the Massachusetts Institute of Technology in Cambridge, Boston, USA. At the age of 23, Ed Seikota earned two bachelor’s titles: electrical engineering and management.
Already in the second half of the 60’s, as a student, tried its hand at the stock market, but did not achieve much success. As the speculator himself notes, he was fortunate enough to draw one important conclusion from the loss-making loan: the market often develops against the news. This later became the main reason for the lack of confidence in fundamental analysis.
Ed Seikot has created an effective earnings strategy for price fluctuations, based on the views of another prominent financier – father of strategy trends Richard Donchan. Using computer technology, Edward checked his own calculations and later began to develop complex indicators. In the 1970s, his trading successes earned him an analyst position at a fairly large brokerage firm, which he soon left because of misunderstandings with management. In the future, he decided to develop as an independent entrepreneur and improve his method. Until recently, Ed Seikota lived in Nevada, but relatively recently moved to Texas.
The actual beginning of the author’s strategy of entrepreneur Ed Seikot was an attempt to drive away Richard’s mechanical systems Donchana by computer. The financier himself admits that he is still not sure if he understands 100% why this approach pays off and makes a profit. However, it can not be said that its success is entirely built on the adaptation of the finished method: in years of practical work in the original model, adjustments and additions were made.
Main sources of information for decision-making, the stock market speculator calls (from the most to the least significant):
a long-term trend that gives a global picture of the balance of power in the market; the current graphic model, allowing for a detailed analysis of the situation; optimal entry points with a long or short position. 101,000 Seikota claims that it is guided from time to time by basic factors, but usually does not produce predictable results. Among the key elements of his strategy, he pays special attention to the suppression of losses – in his words it is important to be able to repair losses over time, leave the market and objectively analyze the situation. These and other topics are described in many articles. Ed Seikota himself was mentioned in Jack Schwager’s book The New Masters of the Market.
Post Multifaceted trader Ed Seikot first appeared on Globe Trader.