Ed Seykota - one of the fathers of mechanized trading strategies

Ed Seykota was one of the first traders to realize the idea of ​​automated trading strategies in reality, even though personal computers had not yet been invented at that time.

His innovative views have allowed him to go down in history as the most progressive trader, who has provided himself and his clients with stunning profits with virtually no intervention in the trading process.

Edward was born back in 1946 in the Netherlands. He spent his early years in the town of Voorburg, but after another move, he had to finish school in Den Haag.

Challenging family circumstances forced the Seykota family to immigrate to the United States. From a very young age, Edward developed a passion for stock trading, as his father, a broker, repeatedly taught him the basic principles of futures and stock trading.

Ed successfully graduated from college with a degree in engineering, despite having a bachelor's degree in electrical engineering. It's worth noting that despite his college education, Edward saw himself only as a trader, so he decided on a job search long before graduating.

First steps in the stock market world

Like any novice trader, Edward made a number of mistakes early on, which, rather than stopping him, actually spurred him on to a deeper understanding of the market. The silver market was experiencing a situation where authorities restricted silver production and sales abroad.

The budding stock trader couldn't miss such fundamental news, since logically, a country experiencing a metal shortage should immediately lead to a rise in silver prices. Naturally, Ed invests half his funds in the precious metal—or, more precisely, silver futures—but for unknown reasons, the price begins to fall.

Confused, Edward decided to buy more, but the price continued to fall without hesitation until the young trader's balance was wiped out. It was this incident that made Edward reflect on psychology and the weaknesses of fundamental analysis itself.

While studying various literature, Ed came across a book by Richard Donchian, in which the author argues and asserts that it is a technical trading strategy based on dry mathematical calculations that will allow one to overcome unexpected passions in the market.

So Ed absorbs the idea of ​​mechanical trading strategies, where the basic indicator is a moving average.

Getting started with automated trading.

In the 1970s, Edward found a job as an analyst at a major brokerage firm ( http://time-forex.com/vsebrokery/brokerskie-kompanii-forex ). There, he was able to implement his ideas for the first time, using a computer to collect data and process it using punch cards. Thanks to his developments, Ed began managing the fund's investors' capital, but due to repeated management interference, the program was not producing the maximum positive results.

One day, when the broiler (chicken) market was bearish, Ed sent out a letter to his investors asking them to refrain from long positions, which greatly displeased the brokerage firm's management, for which he was fired.   

Edward Seykota, having recovered from a high-profile dismissal, has been on his own for 10 years. Thanks to his programs, he successfully grows his own capital, as well as the capital of the investors who trust him with their money.

Some features of trading.

Believe it or not, Edward doesn't even have a price chart, as all the analysis and recommendations are handled by his software. Thanks to his innovative approach, Ed has managed to set a record for increasing his clients' profits, trading from $5,000 to $15 million in just one account in 15 years, not to mention his other investors. 

Ed Seykota is a great figure who gave further impetus to the development of automated trading systems both in the stock exchange and in the forex market.