Another “what’s your edge” thread

[Handle123]

Im assuming you are talking some form of gamma/vol hedge,perhaps with correlation risk,i.e Spx vol vs Stock Delta or Vol

I do use volume quite a bit on entries whether trading very long term commodities or credit spreads but hedging is all about making profits on losing commodity futures trades. This program I have started in 1991 and ongoing, winning percentages have gone way down as I have gotten better in hedging, but number of add-on trades have tripled, so bottom line has increased on completion of futures trades.

I been shorting Indexes for nearly 4 years, taking 100's of tries to find top and yet was profitable overall cause of hedges put on.

Cause of years of doing my own charting by hand since I started in 1978, no laptops then, I got very good at charting. I believe in my heart my time doing by hand made me better trader.

I have gotten better at hedging open profits as well.

 

[taowave]

sorry for the confusion,I meant Volatility as opposed to volume as far as hedging...Only asking as my 2 year arbitrage has vaporized and I will be taking risk as opposed to market making..

Not sure yet if I go the way of hard stops,or gamma/option offsets.

 

[deaddog]

Thank you deaddog,

What instrument is it? CD?

investment savings mutual fund. Currently pays over 3%

I assume your universe is S&P.

Mostly Canadian TSE Stocks (home country bias) plus US stocks.

If I may ask, what prevented you from going short in a down market?

Got burned a couple times when I tried it, so I don't bother. Just my own comfort level.

 

[taowave]

Shorting stocks is a bad business for 99% of traders..

If I am short,its via options

investment savings mutual fund. Currently pays over 3%
Mostly Canadian TSE Stocks (home country bias) plus US stocks.

Got burned a couple times when I tried it, so I don't bother. Just my own comfort level.

 

[murray t turtle]

tighter stops and smaller position size in this environment

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Reading a FORBES article, it notes, ''Edges Exist, But They Are Rare. '' That maybe true in easily observed liquid leaders like SPY benchmark.
Profits are not rare @ all in capital markets, not rare @ all. Good profits maybe more rare in bear markets \assume a 80 year life.
I was thinking today, decade leaders+ profits are common with WMT, common with Ford selling gasoline pick ups, Remington+ Winchester selling guns........... Money management business is much different\ as far as decades leaders.
Good points.

 

[Handle123]

sorry for the confusion,I meant Volatility as opposed to volume as far as hedging...Only asking as my 2 year arbitrage has vaporized and I will be taking risk as opposed to market making..

Not sure yet if I go the way of hard stops,or gamma/option offsets.

I have "turned off" 75% of automation systems I have developed and plowed all into 2 systems, one very long term that's been profitable every year and an options credit spreads system based on directional and volume. I have always traded away from volatility as systems enter against direction.

 

[SavedByTheBell]

sorry for the confusion,I meant Volatility as opposed to volume as far as hedging...Only asking as my 2 year arbitrage has vaporized and I will be taking risk as opposed to market making..

Not sure yet if I go the way of hard stops,or gamma/option offsets.

You are only asking because your bread and butter disappeared and you don’t know what to do.

How does it feel now, Taco Bell? Remember how you treated other traders? Learnt your lesson?

 

[taowave]

STFU, you imbecile.I have forgotten more than you will know in a lifetime of pretend trading.

Stick with PokeMon you F-Tard

You are only asking because your bread and butter disappeared and you don’t know what to do.

How does it feel now, Taco Bell? Remember how you treated other traders? Learnt your lesson?

You are only asking because your bread and butter disappeared and you don’t know what to do.

How does it feel now, Taco Bell? Remember how you treated other traders? Learnt your lesson?

 

[SavedByTheBell]

STFU, you imbecile....

My clearing fees are larger than your P and L..

Stick with PokeMon you F-Tard

Doesn’t change the fact that you are begging on the street for a trading strategy lol

 

[murray t turtle]

are you trading or are you investing?

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Good + good question.
Yes LOL.Plenty of profits in capital markets.
I like public capital markets +sure would not limit myself to those.
May, or may not be as much in public company bear markets.