The fear of trading edge becoming inefficient?

look, the more complicated the edge is (ie technically heavy, too dependent on special market conditions) the faster it will wear out.

if the edge is something extremely simple, related to basic supply and demand and your eye is trained to convert chart information into information about what traders are doing and how are they percieving the market, then your so called edge will not wear out (only if traders are replaced by robots or aliens invade wall street)...
 
Keep things simple, and your edge can evolve as the market evolves.


"Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle and it becomes the bottle. You put it in a teapot, it becomes the teapot. Now, water can flow or it can crush. Be water my friends."

- Bruce Lee
 
Edges die all the time.

There was the IPO's (follow the underwriter) edge in 98-99. Then IPOs dried up.

Then I had a great edge trading one stock against the futures in 00-01. That died when the market was decimalized.

It took a year before I would really make any money again.

The next edge lasted 4 years. Then hybrid came along on NYSE and killed it. But, this time I was prepared and moved on before it was too late. By the time the system died I was already profitable in my next strategy. I know a number of guys that didn't overcome this and have left the business.

When developing this latest system I wanted it to be as simple and straight forward as possible. I admired traders that had the ability to step up to the plate every day and trade whatever was moving, manually, and profitably so that's what I set out to do. I wouldn't call what I do now an edge, so much as just smart trading.

Quote from OddTrader:

Seems nobody would have experienced this kind of fear before, except me and myself?! Great!!! :D
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You get these responses because the majority of traders on this site don't even know what an edge is.
 
Quote from Dustin:

Edges die all the time.
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I'm afraid the best edge among all would be how fast/ soon we could detect, in a systematic way, the losing of efficiency for the existing edge(s) before losing too much capital particularly when using a relatively high leverage in order to generate maximum possible profits.
 
Quote from OddTrader:
Seems nobody would have experienced this kind of fear before, except me and myself?! Great!!! :D
More...
Any trader who doesn't worry about losing his/her edge either doesn't have one or isn't serious about this business.

I knew several good momentum traders who made a lot of money in the late 1990's. When the liquidity (and raging bull market) dried up, they couldn't find anything that worked. I would rather never make it as a trader than to make it and give it all back. I have an edge now, but I always wonder how long it will continue.
 
Quote from Dustin:


When developing this latest system I wanted it to be as simple and straight forward as possible. I admired traders that had the ability to step up to the plate every day and trade whatever was moving, manually, and profitably so that's what I set out to do. I wouldn't call what I do now an edge, so much as just smart trading.
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That's being "like water" right there. I do the same.

No need to pay attention to the news. I just wake up and trade.

No prep time.

Just go with the flow...like the water.

Not too hard once you figure this out.
 
Quote from sunggong:

That's being "like water" right there. I do the same.

No need to pay attention to the news. I just wake up and trade.

No prep time.

Just go with the flow...like the water.

Not too hard once you figure this out.
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You got it. I get to my computer 5 mins before the open and trade whatever opportunities the market wants to offer up.
 
Depends on the edge. Better to base your edge on experience.

Understand Price Action is not an edge is a way of trading.

Sort of like learning to ride a bike or for that matter, fucking, once learned rarely forgotten.

Anek
 
Quote from sunggong:

That's being "like water" right there. I do the same.

No need to pay attention to the news. I just wake up and trade.

No prep time.

Just go with the flow...like the water.

Not too hard once you figure this out.
More...

Assuming that is the highest form/ level of edge and you have attained that, are you saying you would never have had any fear of losing the edge anymore after proving that works (and how long for the fear lasting after proving it works?)?
 
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