He puts emphasis on placing protective stops the minute he enters a trade, and taking profits if the market goes wild. Seykota maintains that he thrives on 3 basic components in his trading style: the long-term trend, current chart pattern and identifying the right spots to buy and sell. Technical analysis has always been his forte. As a trend trader, he managed to convert $5,000 into $15,000,000 over a period of 12 years in his own model account. Therefore, at the age of 23, he went out on his own, taking with him almost a dozen accounts in the $10,000-$25,000 range. He ran batch jobs in Fortran 4 and managed to test 50 different parameter sets on eight different commodities on 4 types of systems over half a year.Īlthough the brokerage managed to build a system based on his research, he had a falling out with the top management. In his off time, he used the IBM 360/65 accounting mainframe to test different strategies. It was here at this brokerage firm that Seykota pioneered one of the first commercialised trading systems for money management in the futures market.
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Register now for our upcoming webinar where James Harte will be looking at a variety of MT4 indicators and how to use them effectively! Later Success In 1970, he was hired by a brokerage firm, where he would go on to create history. This was the start of an early fascination with technical analysis tools. In 1969, Seykota graduated with degrees in Electrical Engineering from the Massachusetts Institute of Technology (MIT), and also earned a degree in management from the MIT Sloan School of Management in the same year.įascinated by an article written by Richard Donchian, explaining a diversified 5 and 20-day Moving Average Crossover system, Seykota began spending his evenings in the local computer service, where he would try to replicate the results achieved by Donchian. He was introduced to many of the concepts of trading by his father, who was himself a stock trader. Early Lifeīorn in 1946, in the Netherlands, Seykota immigrated to the US with his family at a young age.
He is undoubtedly one of the greatest traders of our times. Ykota, a man often referred to as the “father of commercial computerised trading.” Seykota has been credited for bringing IT solutions to forex and commodities trading. A few decades ago, things were different more complicated. We now have robust systems that do all of the price trend analysis and other calculations. Technology has changed the way the forex market works.