Real Edge is rarely shared

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BrandNewTrader

Just had a real breakthrough and now understand why profitable traders are loathe to share their secrets. I spent 9 years of blood sweat tears and MONEY to make it this far... why would i go and tell some prick some shit that took me years to learn? He will probably envision or execute the trade differently from me and get diff results.

Real edge is rarely shared. If this thing turns out to be what i think it is i want to max it out before i sell it out. At least 4 years worth. Bunch of option guys are already doing it and have been for a while they just don't talk about it. Sort of like those mythical trades where you neutralize all the greeks except some positive theta.

If you're a serious trader, and serious as in about the fucking deniro, you will milk your edge and lever up on it for God's sake. Eventually hiring traders to manage your growing fund and diversify your technique/edge across larger markets (scalability?).

It's definitely not rocket science, which is part of the issue. The edge disappears once the behavior becomes widespread...

Any guys who have exploited some very basic techniques that are the keys to their success but kept quiet about it? Care to weigh in? Obviously not looking for trading strats, but opinion on my assertion that real edge is rarely shared. You have to find it for yourself.
 
BrandNewTrader said:
I spent 9 years of blood sweat tears and MONEY to make it this far... my assertion that real edge is rarely shared. You have to find it for yourself.
More...

You must be a very smart guy! I've spent more than 12 years, but still don't understanding why!
 
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It's really just common sense. The gurus and teachers you see on for example ET are merely regurgitating public knowledge you can find in any trading book. It may be that such approaches may lead to some kind of profitability eventually, but they will never make you RICH.

If you had something really, really good that you worked very hard to put together, you would guard it and keep it to yourself. Perhaps you would be willing to give clues or participate in discussions, but you would never fully disclose your system or methodology.
 
Sounds like my recent success, it took me around a year full time and I feel extremely behind. Every trader who's a millionaire makes it sound so easy and like it took a few months to find out how to trade, so much crap online. I don't really believe in the term edge either, I think there is such a thing as knowing how to trade. Anything could be considered an edge, good internet is an edge.
 
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I haven't found that mythical Edge making someone profitable all at once, but I have found that profitability can come from adding a lot of little inches...

 
BrandNewTrader said:
...Real edge is rarely shared. If this thing turns out to be what i think it is i want to max it out before i sell it out. At least 4 years worth. Bunch of option guys are already doing it and have been for a while they just don't talk about it. Sort of like those mythical trades where you neutralize all the greeks except some positive theta.

If you're a serious trader, and serious as in about the fucking deniro, you will milk your edge and lever up on it for God's sake. Eventually hiring traders to manage your growing fund and diversify your technique/edge across larger markets (scalability?).

It's definitely not rocket science, which is part of the issue. The edge disappears once the behavior becomes widespread...

Any guys who have exploited some very basic techniques that are the keys to their success but kept quiet about it? Care to weigh in? Obviously not looking for trading strats, but opinion on my assertion that real edge is rarely shared. You have to find it for yourself.
More...

First, you've admitted you're not sure if you really have an edge via your statement "if this thing turns out to be what i think it is".

The other issue is the contradiction. The thesis you saying that an edge is rarely shared. That's like saying if you have an edge...its OK to share it with a few folks and not with the world.

My point is that most people that share their methods...the world isn't using it. Thus, percentage wise...only a few of the world financial markets is using it. Seriously, do you really think someone that shared his/her method at Elitetrader.com has a large user base that can impact the markets ?

Simply, if the edge that you have is automated...you may be right in your view and a computer program can spread very fast in this world because of the internet. In contrast, if the edge is not automated (its discretionary), no worries because only a small percentage of traders will actually use it and a smaller percentage of that small group will use it as is without any personal modification that allows them to call it their own.

My view point is supported by your own words..."He will probably envision or execute the trade differently from me and get diff results."

That above statement of yours also implies you too are not automated but if you truly believe the masses will try to use whatever it is that you discovered or designed...don't share it with anyone and don't hired traders to trade it for you. It's as simple as that.
 
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BrandNewTrader said:
Just had a real breakthrough and now understand why profitable traders are loathe to share their secrets. I spent 9 years of blood sweat tears and MONEY to make it this far... why would i go and tell some prick some shit that took me years to learn? He will probably envision or execute the trade differently from me and get diff results.

Real edge is rarely shared. If this thing turns out to be what i think it is i want to max it out before i sell it out. At least 4 years worth. Bunch of option guys are already doing it and have been for a while they just don't talk about it. Sort of like those mythical trades where you neutralize all the greeks except some positive theta.

If you're a serious trader, and serious as in about the fucking deniro, you will milk your edge and lever up on it for God's sake. Eventually hiring traders to manage your growing fund and diversify your technique/edge across larger markets (scalability?).

It's definitely not rocket science, which is part of the issue. The edge disappears once the behavior becomes widespread...

Any guys who have exploited some very basic techniques that are the keys to their success but kept quiet about it? Care to weigh in? Obviously not looking for trading strats, but opinion on my assertion that real edge is rarely shared. You have to find it for yourself.
More...
I don't see what the point of this thread is. It's like saying I have a big dick, you just can't see it. I mean, geezus, traders of your caliber would not only keep their edge secret but they would also keep their mouth shut and not brag about it. BTW my dick is pretty sizable as well. :finger:
 
I keep my edges top secret. But edges can dissipate on occasion even without information leaks - variation in market structure is a big reason. One of my main edges diminished in efficacy over the past quarter but it is showing signs of coming back lately.

I discovered another edge a few months back and have been feverishly developing it into a system - will go live next week at the start of the new year. For longevity in your trading career you need to have a basket of unrelated edges ie. diversify your portfolio to exploit multiple market anomalies.

One mistake people make is to try and create the ultimate system based on an ultimate edge they've discovered. Every single edge does not have to look astronomical by itself. Even if an edge produces a sharpe of 1.0 to 1.5 that's ok. When you combine multiple edges the sharpe ratio tends to go up fast, especially if the edges exploit short term market dynamics, which by nature tend to be non-correlated.
 
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