Another “what’s your edge” thread

[MrMuppet]

ASIA

Access (access markets others cannot or don't want to)
Speed (being first in the trade)
Information (having better information than anybody else)
Analytics (digesting information better than anybody else)

 

[Sekiyo]

Hello KGTrader4,
I really need a similar edge below to make some serious money.

Steve Cohen was trading based on insider news.
That's the kind of edge anyone would need to make some serious money.

 

[smallfil]

Hello KGTrader4,

I do not currently have a trading Edge at the moment. But I really need a similar edge below to make some serious money. Listen from 15:44 to 16:28 Until then, I have to keep on clicking the buy, sell, back test button and studying the charts until I get a confirmed/verified Edge.

They all do it. Remember, hedge fund managers have contacts with CEOs of top companies. What if they send over an analyst of the hedge fund and say, go over to Tim Scott of Apple. Tell him I sent you. Ask him what he thinks Apple's next quarterly earnings will be like? Tim Scott tells the analyst that he thinks Apple should have blockbuster sales in the coming quarter. Is that insider information, no it is not. Tim Scott was giving an opinion. Contrast it with this scenario, 2 days before earnings release, Tim Scott talks to Steven Cohen over the phone. He tells Steve Cohen that Apple is going to report blockbuster earnings when it is released. Steven Cohen buys a huge block of Apple shares because of it. Now, that is insider trading. You have to look at the context of when and how the information is given. Take the US Congress, Nancy Pelosi said she is doing nothing wrong when she buys stocks in companies with business before her committees. Is that insider trading? Of course it is but, she and members of Congress get a pass. See the hypocrisy and double standard? "Do as I say, not as I do." Steve Cohen is right to say, there is a lot of gray areas because there is. Members of Congress are not even punished for insider trading.

 

[SimpleMeLike]

Steve Cohen was trading based on insider news.
That's the kind of edge anyone would need to make some serious money.

Hello Sekiyo,

Yes, correct that was a very good documentary.

Yes, now that is an edge that works guaranteed. Steve was able to be a billionaire this way. Now that is an Edge.

 

[SimpleMeLike]

They all do it. Remember, hedge fund managers have contacts with CEOs of top companies. What if they send over an analyst of the hedge fund and say, go over to Tim Scott of Apple. Tell him I sent you. Ask him what he thinks Apple's next quarterly earnings will be like? Tim Scott tells the analyst that he thinks Apple should have blockbuster sales in the coming quarter. Is that insider information, no it is not. Tim Scott was giving an opinion. Contrast it with this scenario, 2 days before earnings release, Tim Scott talks to Steven Cohen over the phone. He tells Steve Cohen that Apple is going to report blockbuster earnings when it is released. Steven Cohen buys a huge block of Apple shares because of it. Now, that is insider trading. You have to look at the context of when and how the information is given. Take the US Congress, Nancy Pelosi said she is doing nothing wrong when she buys stocks in companies with business before her committees. Is that insider trading? Of course it is but, she and members of Congress get a pass. See the hypocrisy and double standard? "Do as I say, not as I do." Steve Cohen is right to say, there is a lot of gray areas because there is. Members of Congress are not even punished for insider trading.

Hello smallfil,

Thanks for explaining to me.

WOW, I am very impressed by the insider trading. I did not know this exist.

So, this how the millions is made and the real serious Edge. Very interesting indeed. They are very lucky to get rich this way.

 

[KGTrader4]

Hello KGTrader4,

I do not currently have a trading Edge at the moment. But I really need a similar edge below to make some serious money. Listen from 15:44 to 16:28 Until then, I have to keep on clicking the buy, sell, back test button and studying the charts until I get a confirmed/verified Edge.

yup, I get the point

 

[Jzwu2017]

Edge is pattern recognition. Everything else is supplementary.

 

[M.W.]

Interesting you said that about entries vs exits, I take a very similar approach. I tend to spend more time and also allocate more resources to improve my edge on entries rather than exits. Especially when developing trading algorithms. And I tend to start with a relatively naive exit logic and then work on optimizing entries. That is where most of my time is spent.

I concur with this. 95-99% of my trading is about getting good entries, as judged by any metric of effort/difficulty or time spent, on an ongoing basis or over the past years. The percentage has actually gone up over time: as you suggest, risk-management protocols are pretty much timeless once they're in place, but by definition one needs to keep finding new entries day after day as long as one is a trader.

Risk management is totally downstream from the entry signal. Good signaling lets you confidently "cut losers quickly" without also cutting your winners. It lets you use smaller stops and thus larger position sizes. Both of these drive up your profit factor and gain to pain, so on top of larger position sizes for the same dollar risk, you also can take on more dollar risk per trade for the same max expected drawdown. The PnL from a set of good signals is robust across a wide range of trade management approaches and methods, but there's no risk or trade management in the world which can make a set of shitty signals profitable.

 

[M.W.]

4400 posts and you did not know insider trading exits? Did you post in the religion forum until now or what?

Hello smallfil,

Thanks for explaining to me.

WOW, I am very impressed by the insider trading. I did not know this exist.

So, this how the millions is made and the real serious Edge. Very interesting indeed. They are very lucky to get rich this way.

 

[tradelosses]

Selling volatility. Works well most years.