My edge is the trade that does not give me any stress and one that I would make again even if it lost the first time. I can build upon it and exhaust as many possibilities that I can think up that would improve the profitability, win loss, drawdown...etc.
Edge edge edge , what is it ?
- Thread starter TurtleLearner
- Start date
Its gut feel from self reflection. A focal moment in time when the trade is about to be placed. Based on what price is doing in relation to almost every other factor. Your brain processes 10,000 items or more at that given moment. If a trade doesn't feel right even though the screen indicators used are telling you its okay, the trade is not placed. That feel comes from a ton of factors at that given moment in time.
-weather
-time of day
-family issues
-news events
-other markets
-price short term pattern in relation to larger pattern
Almost every factor you can think of. Not sure if some type of quantum mechanic effect is in play.
Its a subconscious filtering to let you know what the immediate direction of price will be. I think that's why AI or machine learning that takes into account many many more factors works. Its almost self fulfilling, but the human brain can take advantage of those patterns that the AI is using since they are replicated.
IMO, a trading edge is an approach that derived from a set of proven rules to help a trader identifying sweet spots in order to enter a trade with high winning probabilities and low level of risks involved, which works in any market condition. In some market conditions, such edges should be helping you to recognize that the odds are against you and therefore, you must exit your trade asap.
That is the best I can define it by using english, which is not my main language.
That is the best I can define it by using english, which is not my main language.
For me:
1. A definable set of market conditions
2. A market behaviour that is likely to occur under those market conditions confirmed against back tests. Generally results in a win/loss % that you can translate to a probability of winning.
3. A method to enter and manage (exit) the trade
4. A method to determine if the edge is losing its edginess. Generally, compared against (2) in real time.
The only thing I've found that fits this process well is price action-based trading but of course, I've only been doing it on my own which sucks.
1. A definable set of market conditions
2. A market behaviour that is likely to occur under those market conditions confirmed against back tests. Generally results in a win/loss % that you can translate to a probability of winning.
3. A method to enter and manage (exit) the trade
4. A method to determine if the edge is losing its edginess. Generally, compared against (2) in real time.
The only thing I've found that fits this process well is price action-based trading but of course, I've only been doing it on my own which sucks.
an edge is a secret unfair, advantage..well maybe its fair to you...but all the other traders (competitors) do not feel that way.
An edge is fair, it is a compensation for being better then the others. Everybody who is trading is trying to find an edge. So it would be hypocrite to tell an edge is unfair for somebody else. If you think it is unfair you should stop trading, unless you are trading to make losses.
Do you really think so?
Shrug. I don’t see how everyone flounders in a system.
How difficult is it to develop a system that is long only and buys on major trend line touches? Not very. In fact, I just gave you one. It’s not even a secret one.
You could even do something as simple as buy at the close of the day and sell just before the open. That’s super programmable.. you could go backpacking all week long and enjoy staring at nature instead of a 60hz flicker.