This article looks at Howard Seidler, one of the traders that were taught by Richard Dennis in the famous Turtle Traders Experiment in the 1980s. Dennis argued you could teach a group of people who knew nothing about trading to get great results as long as they followed his own trend-following trading systems. Seidler was interviewed in Jack Schwager’s New Market Wizards book.
Who is Howard Seidler?
Howard Seidler is an American investor. He is the founder and president of Saxons, a U.S. registered Commodity Trading Advisor (CTA), and Commodity Pool Operator (CPO), which began managing accounts using Howard’s special strategy he termed the Diversified Program.
Mr. Seidler was first exposed to the market as a child — his father dabbled in the markets. When he was in high school, he was already aware of the futures market and how it works.
Howard was fascinated by the futures market because of the symmetry of profit on the short and long sides of the market. He was also attracted by the potential leverage offered, so he began studying the futures market.
However, he couldn’t open an account then because he was too young, so he opened one under his father’s name with $1000 he had saved up by doing chores. Sadly, he blew the account after a year.
That experience thought him a lesson: You need to have a trading plan.
In 1984, Seidler began trading full-time as part of Richard Dennis’ original “Turtles Experiment.” After the end of the Turtle Experiment in September 1988, Seidler founded Saxon. (If you want to read more about the Turtle traders, we recommend Curtis Faith’s The Way Of The Turtle – another disciple of Richard Dennis’ turtle experiment.)
Howard Seidler’s Saxon
There are two ways Saxon offered these services. First, as an individually managed account in the Diversified and Aggressive Diversified Program. Second, as a private limited partnership, interests through the Excelsior Fund, L.P., and Excelsior Aggressive Fund, L.P.
In November 1993, Saxon added the Aggressive Diversified Program, which employed approximately two times the leverage used in the Diversified Program. Saxon tends to realize profits for its client assets via speculative trading of Commodity interests. Presently, Saxon primarily trades futures contracts on domestic and foreign exchanges. Nevertheless, they also traded in physical commodities such as exchange for physical (“EFP”).
Saxon engaged in EFP transactions in the Forex and precious metal markets. Furthermore, they may trade options on futures, forex, cash currencies, and forward contracts on commodities. Saxon uses systematic trend-following techniques. Its trading decisions are based on a combination of money management techniques, technical Indicators, and Seidler’s overall experience and sentiments regarding several markets factors and conditions. Regarding their trading approach, these are what he has to say:
Howard Seidler has averaged an annual 34% compounded return since he started trading in 1984.
Other famous traders and their trading strategies
- Top motivational trading quotes
- How Jim Simons’ trading strategies Made 66% A Year (The Medallion Fund)
- Ray Dalio – life, investment strategies, and philosophy
- Jesse Livermore – The World’s Most Legendary Trader? (Trading strategy quotes)
- Richard Dennis – The Turtle Trader (trend follower)
- William Eckhardt – The mathematical trader (An early Nassim Taleb)
- Stanley Druckenmiller – George Soros’ left hand
- Paul Tudor Jones – Maverick Trader (quotes and strategies)
- Micheal Steinhardt – To Make Money Is Should Be A Little Painful
- David Einhorn – investment strategy and philosophy
- Bill Ackman – investment strategy and philosophy
- Steve Cohen – Stock Market Wizard
- Mark Douglas – All About The Correct Trading Strategy Mindset
- Steve Clark – hedge fund strategy market wizard
- Larry Williams – Indicator Innovator, Strategy Trader, And Tax Rebellion
- Jim Rogers – The Adventurist Macro Trader
- Larry Hite – All About Trading Strategy Risk
- Randy McKay – Market Wizard currency strategy trader
- Michael Marcus – The First Trading Strategy Market Wizard
- Charles Faulkner – Trading strategy trader and programmer
- Richard Driehaus – Turtle Strategy Trader
- Dana Galante – the Market Wizard short seller
- Linda Raschke – Tape Reading Trading Strategy
- Nicolas Darvas – How I made $2,000,000 In The Stock Market
- David Shaw – the king of quant – quant trading strategy
- Van K. Tharp – The psychology of trading
- Larry Connors – Mean Reversion Trader
- Rob Hanna – Quantifiable Edges
- Ahmet Okumus – From Istanbul to Wall Street
- Steve Watson – Small cap investor
- Gil Blake – The master of consistency
- Blair Hull – All about the trading edge
- Steve Lescarbeau – mutual fund trader
- Tom Basso – Mr. Serenity
- Bruce Kovner – Trade Small And Manage Risk
- Michael Carr – Trader, Motivator, And Speaker
- Bill Lipschutz – FOREX trader
- Brett Steenbarger – All About Trading Psychology
- Joe Ritchie – an early quant in the option markets
- Micheal Masters – Stock Market Wizard
- Monroe Trout – one of the first Market Wizards
- Alexander Elder – Trading Author And Indicator Innovator
- Mark Ritchie – Master Option Trader (God In The Pits)
- Alphonse Fletcher Jr. – Triple Digit Returns
- Mark Minervini – stock market wizard trader
- Mark D. Cook – market wizard trader and investor (Net worth and strategy)
- Jeffrey Yass – the founder of Susquehanna
- Claudio Guazzoni – Multillingual trader
- Micheal Lauer – Stock Market Wizard?
Trading strategy quotes from Howard Seidler:
Here are four of his trading quotes that are hard to disagree with:
I think the single most important element is to have a plan. First, a plan forces discipline, which is an essential ingredient to successful trading. Second, a plan gives you a benchmark against which you can measure your performance.
It’s important to distinguish between respect for the market and fear of the market. While it’s essential to respect the market to assure the preservation of capital, you can’t win if you’re fearful of losing. Fear will keep you from making correct decisions.
You need to have the persistence to stay with your ideas day after day, month after month, year after year, which is hard work.
You can be following your rules exactly and still lose money. In that situation, you certainly haven’t performed poorly as a trader. The basic idea is that if you follow your rules over the long run, the probabilities will be in your favor, and you’ll come out ahead. In the short run, however, conformance to a trading plan is more significant than short-term equity fluctuations.
- Motivational trading quotes from famous Top Traders
- Does quant trading work?
- How to become a successful quant trader?
- The Way of The Turtle – Curtis Faith
What is Saxons, and how does Howard Seidler’s Diversified Program work?
Answer: Saxons is a U.S. registered CTA and CPO founded by Howard Seidler. The Diversified Program, Howard’s special strategy, is employed to manage accounts. Saxons offers services through individually managed accounts in the Diversified and Aggressive Diversified Program and as a private limited partnership through the Excelsior Fund, L.P., and Excelsior Aggressive Fund, L.P.
How did Howard Seidler get into trading, and what lessons did he learn from his early experiences?
Answer: Howard Seidler was exposed to the market from a young age, with his father involved in trading. He began studying the futures market in high school and opened a trading account under his father’s name with $1000. A valuable lesson he learned was the importance of having a trading plan after blowing the account.
What are the key aspects of Howard Seidler’s trading philosophy and approach?
Answer: Howard Seidler’s trading approach involves systematic trend-following techniques. Saxons primarily trades futures contracts on domestic and foreign exchanges, engaging in speculative trading of commodity interests. Seidler’s decisions are based on a combination of money management techniques, technical indicators, and his experience and sentiments regarding market factors.