Ed Seykota Trend-Following Scanner

Authentic implementation of Ed Seykota's systematic approach to riding major market trends. From $5,000 to $15 million in 12 years using simple trend identification, channel breakouts, and his signature "Heat" risk management.

What is Seykota Trend-Following?
Ed Seykota's systematic approach to riding major market trends

Ed Seykota is one of the most successful trend-following traders in history, turning $5,000 into over $15 million in 12 years. Unlike many traders who try to predict tops and bottoms, Seykota's approach is ruthlessly simple: identify the long-term trend, enter on channel breakouts, size positions using "Heat" (his risk management formula), and ride winners with trailing stops — never using profit targets.

His most famous principles:

  • "The trend is your friend." — Only trade in the direction of the long-term trend.
  • "Ride winners and cut losers." — Use trailing stops, not profit targets. Let the market tell you when the trend is over.
  • "Manage risk before managing profits." — His "Heat" concept (risking only 0.5-2% of equity per trade) is what kept him in the game through inevitable losing streaks.
  • "Everybody gets what they want out of the markets." — Psychology and discipline matter more than indicators.

StockPilot's Seykota scanner implements these principles using 5 filters that mirror his actual methodology: trend direction, channel breakouts, momentum confirmation, Heat-based position sizing, and ATR trailing stop management.

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