Should read: ... money management edge (for loss control and profit taking) ...
And, the most difficult one to find/attain is Money Management Edge!
Therefore, a Prudent approach is required and critical for profitability! lol
Whether an Edge or not is in the eyes of the beholder!
imo, there are directional edge (for viability), money management edge (for profit) and risk management edge (for tail risk)!
Just 2 cents!
My guess is Xeno is quite correct that selling puts has no edge, as everybody can do it from the first day of options trading to earn premium!
http://www.elitetrader.com/et/index.php?threads/why-is-day-trading-considered-dangerous.292077/page-4#post-4133142
That's correct (because +100%, 0% and -100% can be seen as prudent money management), and especially very true for the professionals who manage long-only funds.
But How to do it well is a question!
Everything You Always Wanted to Know about Log Periodic
Power Laws for Bubble Modelling but Were Afraid to Ask
http://www.mathworks.com/matlabcentral/answers/uploaded_files/12237/frolova-paper-15.pdf
My guess: A non-existing event! lol
" http://visual.ly/what-are-odds
What are the odds that you exist, as you, today? Author Ali Binazir attempts to quantify the probability that you came about and exist as you today and reveals that the odds of you existing are almost zero.
"
"...
My guess is first at all, perhaps you are Not allowed to use any computers/calculators!
Now you understand your Odds! lol
PS: Read Chapter 7 The Trader's Edge - Thinking in Probabilities (Trading in the Zone by Douglas)
" http://wiki.lesswrong.com/wiki/Log_odds
Log odds
Log odds are an alternate way of expressing probabilities, which simplifies the process of updating them with new evidence. Unfortunately, it is difficult to convert between probability and log odds. The log odds is the log of the odds ratio...
I am sorry, personally I don't see any issue with my sarcastic style.
BTW, I think your style of frankly speaking is good and positive! Much appreciated!