Ok Ok what edge

Equalizer · Jul 12, 2005

Quote from aPismoClam:

there is definitely "art," or "analog," involved. that's my edge over rocket scientists -- they think it's all calculus. which it is, until it isn't. then we get things like Long Term Cap.

Oh Puhleeze..., everyone is an expert on LTCM - or so it seems

Alexis · Jul 12, 2005

an edge is a statistical advantage on he market

prt_systems · Jul 12, 2005

Quote from illiquid:

How about having good "taste" for the markets -- ie, trading as artform? I think a trader can get away with this pov, at least equally as far as those who consider the markets solely along mathematical lines. I've long felt the part(s) of the brain responsible for good timing in a trade (what an edge boils down to) is the same involved in arranging elements against a blank canvas or editing film scenes together -- spatial/temporal composition. How does one develop skills in any artform? Information, experience, ability to think "outside the box", taking risks, alot of correlations imo.

... Until a computer system can duplicate the talents of an expert discretionary trader then pure mechanical trading wont replace people, hence the art form analogy.

I think that these days the combination of automated, semi-automated, and some discretionary level of decision making is the typical mix for most traders .....

illiquid · Jul 12, 2005

Quote from Alexis:

an edge is a statistical advantage on he market

I don't think this is necessarily so, at least that statement assumes one trades in a manner that can be measured with statistics. An edge can go so far the other way as to be considered "anti-statistical", that is, to assume what has worked in the past (edit: within the markets, as opposed to one's own results) will not work in the future and profiting from that.

nitro · Jul 12, 2005

Quote from Equalizer:

Oh Puhleeze..., everyone is an expert on LTCM - or so it seems

And what is funny is, most of these people that have no clue about what a real edge is, their money ends up in RenTec, Citadel, DEShaw, Two Sigma, SAC Investment, or a few other high tech trading firms pocket

nitro

nitro · Jul 12, 2005

Quote from Alexis:

an edge is a statistical advantage on he market

Absolutely, unconditionally true. However, that leaves much to be desired for those that have never seen it.

nitro

aPismoClam · Jul 12, 2005

Quote from Equalizer:

Oh Puhleeze..., everyone is an expert on LTCM - or so it seems

uh-hunh. i guess the gods have spoken.

nbates · Jul 12, 2005

Quote from Alexis:

an edge is a statistical advantage on the market

I think that sums it up quite well.

easyrider · Jul 12, 2005

Even if you find an edge thats only half the battle.

dddooo · Jul 12, 2005

Quote from nbates:

I think that sums it up quite well.

It just does not answer the original question, the person who started the thread was looking for examples, not simplistic and obvious definitions.