"edge"

ElectricSavant · May 4, 2003

sabena.....try "unfair advantage" to literally define edge.

Michael B.

ElectricSavant · May 4, 2003

Would a Globex terminal be a hardware edge?

Michael B.

OddTrader · May 4, 2003

Quote from sabena:

How would you quantify an "edge" ?

I have about A% confidence to win B% trades in order to achieve a C% growth of capital employed, before D% of employed capital is disappeared by an E period of time.

traderkay · May 4, 2003

ProfitFactor=(%Wins*AvgWin) / (%Losses*AvgLoss)
It should also incorporate commissions.
If PF>1, technically you have an edge. The bigger it is, the bigger your edge and the smoother your equity curve will be. For example PF of 2 will always give you an equity curve to kill for.

candletrader · May 4, 2003

The edge is a combination of those things you have identified and those you haven't yet identified, working together to produce a living out of this wonderful game...

chasinfla · May 4, 2003

ability of any kind is an edge, is it not?

it's another beautiful thing about free enterprise -- you can find your fit.

markets are awesome....

candletrader · May 4, 2003

Quote from chasinfla:

markets are awesome....

Yup, they sure are

exce26 · May 4, 2003

Edge is the word for Prop firm owner who try to persuade people to deposit 25k into their firm. Statistically, minimum 10k goes to Prop firm owner's pocket (commissions before they quit) no matter what the market does...
That is the real edge!

ElectricSavant · May 4, 2003

TraderKay,

Profit factor "AKA" P/L ratio 2.49:1

Win Rate 93.02%

Avg W/L Ratio 0.1869:1 (avg win 1.03) (avg loss -5.50)

What would your comments be to these above stats?

Michael B.

Pabst · May 4, 2003

Quote from Maverick74:

Edge is something real not percieved. An edge is something one person or group of people can get and others can't. For example, earning the spread is an edge. Why? Because you can't do it, market makers can. Another edge is borrowing cost. If one person has to pay 50 basis pts over libor and another person has to pay 150 basis pts over libor, that is an edge. This is why I get a kick out of people who think their TA or magic indicators give them an edge. That is not edge. You can't tell me that because you are really good at reading candlesticks that that is your edge. Doesn't work that way. Another edge is execution, both speed of excecution and personal brokers. But that edge is borderline and kind of in a grey area.

More locals or M/M's have run several thou into several mil than all other market participants combined. However, that being said I do believe there is a soft edge available on the screen.