How to find an edge ?

[Scataphagos]

"EDGE" is hard work and bit of luck.

Tonight I used a $5 bill to get a coke out of a vending machine, got change of 2 one dollar coins and 3 quarters. Since being a kid, always looked at coins, hundreds of times ordinary coins, tonite was 1979 Susan B Anthony with San Francisco mint mark, worth more than a buck.

So knowledge and personverance come together.

So... you spent $2.25 for a Coke?

 

[zghorner]

Developing edge takes dedication, research, and commitment. You can embark on that path by reading my thread Elite Trader School | Elite Trader to first build knowledge on the market, and then narrow on your style, market, or sector.

looking forward to going through that, thank you.

 

[longandshort]

Agree. Most talk of slippage and execution costs as some big issue. Only if one's edge is miniscule.

Execution edge is delta neutral

 

[SimpleMeLike]

That's probably one of those things that only time will tell. If after many months/years and many,many trades you are profitable,, well it appears you have found an edge. Of course there will always be a nagging thought in the back of your mind have I really found an edge or was it all just luck?

Good Morning tomkat22,

Thanks for the response. I agree.

I think trading edge is personal defined because capital is needed too.

 

[2rosy]

what would be useful is if someone curates and summarizes exchange/sef/ecn (worldwide) trader incentive offerings. Those are sometimes quite valuable

 

[SunTrader]

Execution edge is delta neutral

For those who don't specifically trade just the underlying or derivative by itself, such as in pairs, spreads, arbs, etc.

 

[longandshort]

For those who don't specifically trade just the underlying or derivative by itself, such as in pairs, spreads, arbs, etc.

Just because you can buy an odd lot on the screens doesn't mean you can generate pnl.

 

[SunTrader]

Just because you can buy an odd lot on the screens doesn't mean you can generate pnl.

Assume much, unless you weren't referring to me personally. Don't trade equities. Anyway never have (nor likely ever will) buy an odd lot in my life.

 

[longandshort]

Assume much, unless you weren't referring to me personally. Don't trade equities. Anyway never have (nor likely ever will) buy an odd lot in my life.

Slippage and TC is the distance between your fill and your arrival price. Just because someone gets a fill close to their arrival price doesn't mean they have an edge in the direction of where the underlying is going, hence an execution edge is "delta neutral." E.g. just because I am a small trader and can fill my order on screens w/o slippage, doesn't mean I am right about a stock going up or down subsequently. I wasn't talking about you, I was talking about how execution edge and trading pnl are two separate things.

 

[traider]

Good Morning tomkat22,

Thanks for the response. I agree.

I think trading edge is personal defined because capital is needed too.

Good evening SimpleMeLike
Is edge within ourselves?
Are we the edge?