The fear of trading edge becoming inefficient?

Quote from Kovacs:

How can a trading method based purely on price action ever go obsolete?
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Are you saying that the traders based on purely price actions would have no fears at all? Hence they are able to use the maximum possible/ allowable leverage available to them.

Otherwise, fear would be still there, knowingly or unknowingly, imo.
 
Diversify between permanent edges, and temporary obvious market inefficiences. The latter tend to have far superior risk/reward characteristics, but they don't last all that long, maybe a few years or so. By having permanent edges, you can still earn superior returns during those periods where no clear market efficiencies are apparent to you.
 
Quote from Cutten:

Diversify between permanent edges, and temporary obvious market inefficiences. The latter tend to have far superior risk/reward characteristics, but they don't last all that long, maybe a few years or so. By having permanent edges, you can still earn superior returns during those periods where no clear market efficiencies are apparent to you.
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I think the fear usually is coming from not knowing whether a particular (permanent by its nature) edge is really a permanent one or not, after a period of time (say many years).
 
Post your edges here, I'm starting a collection

1)___________________________

2)___________________________

3)___________________________


If you have more than 3 edges, post the best ones.
 
Quote from stock777:

Post your edges here, I'm starting a collection

1)___________________________

2)___________________________

3)___________________________


If you have more than 3 edges, post the best ones.
More...

Very good idea. You first! :p
 
Quote from stock777:

Post your edges here, I'm starting a collection

1)___________________________

2)___________________________

3)___________________________


If you have more than 3 edges, post the best ones.
More...


1) Closing my eyes makes my P&L freeze in its tracks.

2) Booze takes away all pain of a bad day.

3) Taking the other side of CNBC ideas (after the obligatory idiot run-up) is the best edge in the business.
 
Quote from stock777:

Post your edges here, I'm starting a collection

1)___________________________

2)___________________________

3)___________________________


If you have more than 3 edges, post the best ones.
More...

1. Using Omega 3 fish oil

2. Using quercentin (also given to US military by the government, makes you feel real fuzzy)

3. Not expecting to learn from ET (a big one)
 
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