Edge edge edge , what is it ?

[treeman]

Treeman...you say "handle getting your ass beat", but that sounds like terrible risk control to me...getting one's ass beat in the market means something's wrong...like letting positions blow through one's stop level frequently. You also say "learn to not lose", but that sounds like having high probability entries...that would help to not lose...wouldn't it? You probably mean "learn to not lose much"?

It means learning to lose the right way and there are ways of losing you should avoid- specifically, the ones listed.

Handling getting your ass beat- eg It only takes losing 4-5 times in a row to be down 5% if you’re risking 1. Anyhow, having a 5% down day and going on a perfect first date later that night. The next day you’ve forgotten yesterday’s loss. That’s learning how to get your ass beat. That is unless you don’t think losing 5% is getting your ass beat. But then again, if that’s the case you def have discipline or you’re an alligator.

 

[SimpleMeLike]

I totally disagree with the above you wrote

Discipline before vision. The most important thing is how good you are at risk control. Trading is competitive and you have to be able to handle getting your ass beat. The key is to learn how NOT to lose (i.e. over-levered, trading too frequently, tight stops, hope), not how to get into a trade. People spend way too much time on the latter, especially in the beginning.

treeman,
No disrespect, but I totally disagree with the above you wrote. Your comments is true after you find a winning system.

If its that's easy then I will now go search online or youtube for a trading system/strategy where someone says it make money. I will buy it for about $1000 and use allll the discpline and follow the rules everyday to trade it, and I better be wealthy right? Is that all I need to do? I swear I will control my emotions, follow the system rules, be discipline and all that easy stuff and then the money will come right?

Again, if all that was required to make money was risk control, discipline, not over trading, learn to take losses, every trader would be rich. That stuff is easy and a constant in the money equation. That stuff means nothing. You can be the most discipline trader in the world, but if you trading the wrong system, you will still lose money.

The variable in the making money equation is if your system/strategy/method has proven reliable evidence of making money consistently year-to-year or month-to-month. Why even play this game if you don't have the odds (edge) of winning in your favor.

 

[dozu888]

treeman,
No disrespect, but I totally disagree with the above you wrote. Your comments is true after you find a winning system.

If its that's easy then I will now go search online or youtube for a trading system/strategy where someone says it make money. I will buy it for about $1000 and use allll the discpline and follow the rules everyday to trade it, and I better be wealthy right? Is that all I need to do? I swear I will control my emotions, follow the system rules, be discipline and all that easy stuff and then the money will come right?

Again, if all that was required to make money was risk control, discipline, not over trading, learn to take losses, every trader would be rich. That stuff is easy and a constant in the money equation. That stuff means nothing. You can be the most discipline trader in the world, but if you trading the wrong system, you will still lose money.

The variable in the making money equation is if your system/strategy/method has proven reliable evidence of making money consistently year-to-year or month-to-month. Why even play this game if you don't have the odds (edge) of winning in your favor.

lotta folks don't know what edge or positive expectancy is, so they get distracted by the peripheral stuff - risk control, psychology etc.

if one has an edge - it doesn't matter much where/how/if you set a stop loss... and psychology isn't that critical either if you win most of the time.

 

[SimpleMeLike]

lotta folks don't know what edge or positive expectancy is, so they get distracted by the peripheral stuff - risk control, psychology etc.

if one has an edge - it doesn't matter much where/how/if you set a stop loss... and psychology isn't that critical either if you win most of the time.

dozu888,

Exactly!! You are correct. I would have saved my self about $3000 total if I had learned and done research on the systems positive expectancy meant before buying different online trading systems/methods from different websites a few years ago.

 

[deaddog]

The best definition I have heard;

Edge = being able to see something in the market in time to be able to exploit it.

 

[Handle123]

I think people are confused about the "edge", it is not one idea but several and you have to piece them together. The "edge" has shown me sample size 20,000 plus in the past/real time(3 months) has a statistical advantage of "net" profits.

Others spend more time choosing dvd players though.

 

[bln]

so I need to know what's this specific edge is about not an academical description but a pragmatic .....

Edge is that "thing" that generates Alpha. You know, positive statistical return and positive probability outside of pure randomness.

 

[Turveyd]

Most peoples trades are pure random, especially longer TF trades.

Small and Fast, in and out is my edge and a simplistic view of market direction.

 

[vanzandt]

Tried girlie next door, won't listen thinks she knows best already lol

Small and Fast, in and out is my edge

Maybe that explains the neighbor girl.

 

[Spectre2007]

The evolution of the edge for me anyway has come to this: Its a multidimensional moving average of tendencies regarding price. If you watch a derivative enough, you will know the nuances in price action. That internal moving average you develop will tell you what its most likely next wave of ticks will be. When the price actually deviates from your internal moving average, its best to take notice and stop loss out or reverse.

That internal moving average takes into account almost every factor that your exposed to.

'gut feel'