Trading with Ed Seykota

Luiggi Trejo
2 min readAug 17
Photo by Radek Kilijanek on Unsplash

A Trailblazer in Trading and Technological Innovation

Ed Seykota, a name synonymous with trading brilliance, left an indelible mark on the financial world through his pioneering work in developing computerized trading systems and his masterful use of technical analysis. As the 1970s and 1980s unfolded, Seykota’s innovative approach to trading earned him widespread recognition and a well-deserved place among trading legends.

One of Seykota’s most remarkable contributions lies in his role as a trailblazer in developing algorithmic trading systems. At a time when computers were beginning to enter the trading arena, Seykota recognized their immense potential to revolutionize the way markets were navigated. He set out to harness this potential and created one of the first algorithmic trading systems, effectively automating his trading strategies. This visionary move not only provided him with a competitive edge but also marked a pivotal moment in the evolution of trading technology.

Seykota’s trading philosophy is firmly rooted in trend-following strategies, earning him the well-deserved title of a “trend-following trading guru.” He understood the power of riding market trends and the importance of aligning oneself with the prevailing market direction. By leveraging technical analysis, Seykota identified trends, momentum shifts, and key support and resistance levels to make informed trading decisions. His approach was methodical, rooted in data, and unburdened by emotional bias — qualities that remain as relevant today as they were during his heyday.

To gain a deeper insight into Seykota’s trading style, one can explore his trading pyramids. Seykota employed a pyramiding technique where he added to winning positions as they gained momentum. This approach allowed him to maximize profits during strong trends while effectively managing risk. The pyramiding strategy became one of his signature techniques, demonstrating his ability to adapt and innovate within the ever-changing market landscape.

On a more personal note, Ed Seykota’s journey holds valuable lessons for aspiring traders. He emphasizes the importance of cultivating discipline and self-awareness. Seykota’s trading success wasn’t just a result of technical prowess; it was rooted in his ability…

Luiggi Trejo

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