How are you better than other traders?

none of these are edges. anyway, in terms of retail edge over institutions, there aren't many. the ability to exploit niches that big funds cant, general agility in/out of trades, and the absence of complex corporate governance are some of the meager few.

that being said, retail can still share some of the same sources of edge that the big guys can. whether its some structural source of alpha, or a much rarer basis some proprietary modeling edge. on the whole, obv, there are many more areas where retail simply cannot compete.
 
Liberty Market Investment said:
What do you guys consider your competitive advantages in the market over large funds, banks, programmers, mathematicians etc.?
Any business falls apart without an edge. Even more so trading, being a highly competitive business.

A retail store may have several advantages such as: unique assortment, lower prices, nice location, great customer service etc. If we consider each trader a separate business model, the question is what advantages one trader can have over the others?

Some trading gurus say if we do not know what our strong sides are, we won't be making any money on the market in the long run. But would it be enough to have just one strong advantage even if you know what it is? Coming back to a retail store example, imagine what would happen if prices became lower in all stores around yours. Boom, and your only advantage is not an advantage anymore.

Here is a couple of examples of what some traders consider an advantage.
1. Being good at programming, back testing trading ideas, etc.
2. Knowing the probability theory well enough to make accurate forecasts about the future price moves.
3. Cutting trade losses by using tight stop losses, limiting losses for the week, month, etc.

There are more examples out there, you name it. In my opinion, the best advantage is the one that is unique, i.e. such an edge than no other trader has.

Now the question is - what's your edge?

I.e. "I know the 100% working method of drawing support and resistance lines"
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I’m better than technical traders because I know how to price events.
I’m better than fundamental traders because I will not be stuck in a position that does not perform.
I’m better than day traders because I can read order flow.
I’m am better than institutional traders because I can enter and exit a position quicker.
I’m better than outright traders because my derivative trades provide defined risk with better reward to risk ratios.
I’m better than reversion to mean traders because I don’t have to wait a good part of the day for an opportunity.

Lastly and most importantly, I am better than profitable traders because I’m a giver!

Edited.
 
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taowave said:
Elaborate please..
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Time is the friend (edge) for the longs in an index future. There is no other rule. Go long right now in an index future. Roll each month. Do it for the past 10 years in a backtest. Calculate the result.

Voila'!

In every way we are, we don't have to change. We just don't have the guts to stay our course.

 
Overnight said:
Go long right now in an index future. Roll each month. Do it for the past 10 years in a backtest. Calculate the result.
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Now go short when the price closes below the 200 day moving average and make even more money, with much less drawdown.

Plus you will avoid ALL the freaking so-called "crashes". Heck, now you will profit from them!

Do it for the past 10 years in a backtest... :cool:
 
Tradex said:
Now go short when the price closes below the 200 day moving average and make even more money, with much less drawdown.

Plus you will avoid ALL the freaking so-called "crashes". Heck, now you will profit from them!

Do it for the past 10 years in a backtest... :cool:
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So what is your exit on those shorts?

The exit on the longs is the roll. Calculate it.

 
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