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Friday, August 26, 2016

TTP - IV TT Application and Questions

Sat, 17 Jul 2004

IV TT Application and Questions

Chief Tahoe,

Since I walked into the Trading Tribe site a week ago I can’t trade. Suddenly I realize that I’ve been pushing the envelope too far and that I need to resolve a lot of feelings and knots before I can trade in a safe and disciplined way. Yesterday I applied to the San Jose tribe and I am now waiting for their response. May I also apply to the IV Tribe? Is it agreeable that a person be part of two tribes. I commit to attend and be an effective participant in both. I am not employed and have plenty of bandwidth [I have already read the whole 18-month FAQ]. I understand that you have a waiting list. I’d appreciate it if you would add me to it [BTW, How many are on the list already?]. Attached please find my essay on my understanding of TTP and my resume, in a Word doc ...

In the meantime, I have a few questions:

1 - Are programming skills a necessity or a great advantage in trading? I understand that programming your signals makes them clearer and crispier in your head, but that’s if you are a programmer and you speak that language. How about an artist, can’t he get that clarity through other means, such as putting his signals in colors? Does the trading system itself have to be automated? Does the PC have to do the buying and the selling? Livermore did not have a PC, neither did Baruch, Loeb, or Gann. Yet, they were all formidable money managers and traders and they rode fantastic trends. Niederhoffer is a math nut, he has parameters on everything, even on changing a baby’s diaper, yet he busted twice in 4 years. Am I resorting to rationalization in order not to deal with my fear of computer languages?

2 - I don’t get the message of the Jademaster's story in Jack Schwager’s Market Wizards 2 book. How does the student finally figure out that the stone in his hand is not jade? I understand that the experience taught him patience and self-control, to deal with his feelings and emotions, and to go with the flow. But how does becoming a self-master help him know that the stone is not jade. If he and the master only talked about frogs, how did he learn the properties of jade? If he did not have a basic understanding of jade to begin with, how did he figure it out?

3- That book (MW-2) is 12 years old. Does this mean that you have been working on your book for over 12 years? If that is the case, then it’s going to be a major rock of jade indeed - over 2500 hours of master thought! Talk about a patient, long-term

4- Is it safe to believe that TTP is your real trading system? The holy-trinity rules [follow the trend, cut losers & ride winners, manage risk] are only possible with the self-mastery and knot dissolution that come from TTP, thus TTP got to be the thing. Choosing parameters for timeframes, heat, entries, and exits are of secondary nature to the above three. Right?

Thanks so much for the invaluable treasures that you are making available to us. We are truly, truly blessed.

My Understanding of TTP

“I sometimes think that speculation must be an unnatural sort of business, because I find that the average speculator has arrayed against him his own nature…” “The speculators’ chief enemies are always boring from within.” --- Jesse Livermore

These quotes from Edwin LeFevre's Reminiscences of a Stock Operator, also appear in Victor Niederhoffer’s Education of a Speculator, where Mr. Niederhoffer is somewhat critical of Mr. Livermore because he’s a plunger and he dies broke. Mr. Niederhoffer then promptly proceeds to have two blow-ups himself (in 1997, and in 2001).

Even super-traders have difficulty practicing what they know. This proclivity for drama, this predilection to self-destruct is part of our human nature, and is as old as Adam and Eve.

The basic tenet of TTP is that the feelings we judge and try to avoid run our lives. Feelings are the bridge, the common language, between Fred and CM. By experiencing feelings we can set ourselves free from their drama and its negative consequences. TTP is a bridge builder, a promoter of the free flow of feelings from Fred to CM, so that Fred does not have to resort to tricks and to drama in order to get our attention. This free flow is best achieved through the creation and engagement of a supportive intentional community that is competent in sending and receiving, openness, sharing feelings, mirroring, pacing, and encouraging each other to be exactly the way we are. The Three Musketeer (TTM) slogan is a good one for TTP: One for all, all for one!

All feelings are good. All feelings are friendly. All have positive intentions, no matter how painful they are: Hunger and thirst cause us to eat and drink so we won’t starve. Guilt causes us to do the rightful things and to give back to our community. Fear causes us to cut risk and to work harder. Confusion causes us to ask and to learn. Pain causes us to move out of harm’s way. Yet, we have tied up a lot of those feelings in knots over the course of our lives in the mistaken belief that they are bad for us. Our feelings do not sabotage our lives, our relationships, our trading. It is our unwillingness to feel our feelings that forces Fred to set up destructive dramas so it can get our attention. TTP is a process of exploring our feelings rather than suppressing them and hiding them, because all feelings have positive intentions.

TTP is a continuous improvement process. As such it requires real commitment and continuous involvement. It happens in the ever-present moment of now, it accepts no excuses, no rationalizations, no explanations, and no procrastinations.

TTP does not attempt to erase the past. Not even God can erase the past. TTP allows us to accept and acknowledge our feelings about the past, to fully experience them. In doing so they dissipate, they are no longer important in the ‘here and now,’ and they are no longer holding our actions hostages. TTP does not obsess over the future and does not attempt to control it. It recognizes that the future is a series of ‘nows’ on the way here and it deals with them when they arrive. It realizes full well that they might evolve into different dimensions during their journey to the present.

TTP is neutral. It does not take sides. It does not judge. It does not label feelings. It does not think positively or negatively about them. It allows us to follow our feelings wherever they take us, as a master trend-follower effortlessly follows the trend in a celebratory, happy-go-lucky style. As long as it goes, he rides it and when it reverses, he reverses with it. TTP yields like water and gently fills any form made available to receive it.

TTP is about liberating Fred from the tyranny of CM - the tyranny of the should's and the why's. TTP recognizes that, in life, we become what we resist. Man is possessed by what he fears and what he craves. TTP ensures we control our feelings, lest they control us. But ‘control’ in TTP does not mean suppressing our feelings. It means reaching for them, feeling them, exploring them, embracing them, celebrating them, allowing them a let-out. TTP means control through resolution, not through conflict. It entails free-flow, not bottling, of feelings.

TTP is creative decision making, trend-following style: Lots of upside with limited downside. By intensely observing our feelings with the intention to fully experience them, we accomplish two things: (1) Fred is acknowledged and he no longer has the need to set up dramas to bring those suppressed feelings to the attention of CM, thus the limited downside. (2) An ‘Aha’ experience (insight, solution) is eventually achieved as things suddenly make sense and the development of wisdom in the troubling area starts - we will automatically know what we want to do and how - thus the upside.

TTP is about the right livelihood, not just about making money. Too much emphasis on money and material possessions, at the expense of intellect, spirit, family, and community is not a good thing. Soon our possessions begin to own us and the dollar sign becomes our self-identity and our master.

TTP is a philosophy, a mindset, a way of life, to be practiced day in-day out, not just theory and concepts to be entertained sporadically.


Jan. 2003 – Present: Trader - for own account.

2001-2002: Director / Controller, [Name] Corporation.

1999-2000: Controller, [Name] Corporation.

1995-1998: Financial Analyst and Finance Manager, [Name] Corporation.

1990-1995: Financial Analyst, [Name] Company.

1985-1990: Lending Specialist, [Bank]


1985: MBA, [University]
1983: BS in Arts and Sciences, [University]

Ed Answer:

You may attend as many Tribe meetings as you can sit.

1. No

2. Experience not getting it.

3. On and off - mostly off - lately on.

4. My Real Trading System = set of feelings I am unwilling to experience.

Very nice description of TTP.

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