Did Your 'Edge' Come Easy?

Quote from bespoke:

so that's not an edge? it's not something that's repeatable with a positive expectancy?
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"Edge" is either (1) mathematical, or (2) a force in motion which you can get in front of...

Discipline, if you think that's your edge, has neither quality. Not saying discipline isn't important... it's CRUCIAL... but it doesn't have the same expectancy as a genuine "edge".
 
Quote from bespoke:

so that's not an edge? it's not something that's repeatable with a positive expectancy?
More...

Using what Bespoke said, let's define 'edge' as "repeatable with a positive expectancy."

Semantics aside, and regardless of whether the newly defined 'edge' is illegal or legal, so far I can conclude that "finding an 'edge'" is tough. Or at least not as easy as a walk in the park.

This is good news, because it means I'm not the odd one out. And it also means now I'm definitely NEVER giving up. :D
 
Quote from Chris_Anonymous:

Clearinghouse,

I've been doing the second option. Sitting, staring at charts for months. Finding a pattern is not an issue, there's millions of them. The issue is the risk and money management portion, or how best to play the pattern.

With what you said about your signal drying up and getting mixed results, I'm hoping to find a way around that as well. Does it make sense to place stops/entries/exits/targets/etc. based on dynamic conditions rather than number of ticks or something? Like having a stop below support, rather than 2 points away? It seems logical, since this way volatility would be automatically factored in to the trade. This is an idea I keep coming back to.
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The stop should be a function of information you have in the current market. If 'V' is the value of the stock at time t, then you have some expectation of V *conditioned* on the events that have transpired in the market prior to t. I can't dictate to you what information is useful or how to place a stop, other than to say setting a fixed stop is probably ignoring information that is useful. The debate shouldn't be between those two choices you've mentioned, the debate should be more around what information are you really ignoring.

If you end up in a thought-circle like this, it's best to step back and question things rather than go in a loop. I'm a "loopy" thinker as well, but find it doesn't help me with trading.
 
Edge, imo, is a 'guaranteed' way to make money (positive expectancy, etc.). It says nothing of the volatility associated with capturing that edge or of the expected return.

IMO, the RFR is an edge. Investing in a 5,10, 30yr treasury is an edge - it's just that there are more profitable edges that provide less volatile equity curves. Edge isn't as abstract as many people make it out to be. To that point, finding a poor edge is probably easier than finding a not poor one, but everyone has to start somewhere.

I think everyone strives for an edge that provides tremendous return with zero volatility (not sure that legally exists in abundance), duh. M2c.
 
Delusions of edge... none of you have it... or you would be using it... not arguing over what it is, and what it is not...





grow up fellas..
 
Quote from JuniorCTA:

Delusions of edge... none of you have it... or you would be using it... not arguing over what it is, and what it is not...





grow up fellas..
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Was it hard or easy for you to find your edge?
 
Quote from JuniorCTA:

Delusions of edge... none of you have it... or you would be using it... not arguing over what it is, and what it is not...





grow up fellas..
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... or maybe some of us have them fully automated so we can spend the trading day browsing ET and having useless debates
 
Quote from bespoke:

... or maybe some of us have them fully automated so we can spend the trading day browsing ET and having useless debates
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You don't know anything, they're not useless:p
 
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