The Meaning of A Trading Edge

Quote from Ninjatrader1:

My own definition of a trading edge is a mixture of technical skills and psychology.

1. Knowing yourself ie identifying your strengths and weaknesses;
2. A logical and flexible trading method(s) suited to your own personality and written down;
3. Intelligent position sizing;
4. Maximising profits as much as possible;
5. Minimising losses and risk as much as possible;
6. Discipline to follow your trading plan; and
7. Patience to wait for the very best setups.

Should lead to a trading edge ie positive expectancy.
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Spot on !

Pity I had to read hundreds of useless posts before getting a summary.

Anybody else summarize it?

It does not matter what spread you pay , it is whether you can make money CONSISTENTLY after paying the spread.
 
A trader's edge is not so simple to understand.

The edge is the total combination of strategy,mindset, risk management ,execution , trading plan, experience ,quality screen time intuition , ability to read context , probabilities , instrument knowledge and a trader personality suited to trading.

It is much more than a casino edge. Psychology is more important in a trader's edge and makes up 80 % of a trader's edge.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=236978
Mark Douglas "An Edge is nothing more than an indication of a higher probability of one thing happening over another".

The casino edge

http://www.traderslaboratory.com/fo...y/4348-trading-edge-definition.html#post45836

Casinos don't have to deal with issues of mindset ,emotions and psychology.

http://www.elitetrader.com/vb/showthread.php?threadid=236978

Reading price action and trading with the flow can give a edge

http://www.elitetrader.com/vb/showthread.php?threadid=235274

Finally another post to note.

http://208.234.169.12/vb/showthread.php?threadid=219739&perpage=6&pagenumber=5

The edge includes acceptance of the facts and preparation that , when 80 % of trends fail , trader will react to protect the edge.Also knowledge that trader is betting/gambling on unknown outcome.Trader must understand trend trading is paying higher prices for the instrument .
 
Quote from oilfxpro:

Does being a vendor give you an edge?
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Only if your block allocations to subscribers are properly charged according to the size of their allocations so that there's no free riding.

C2's compensation practices are unfair and nobody makes money there.

WorldCupAdvisor.com's technology gives an average price fill guaranteed by the broker no matter how large the order is, so unlike C2 if someone's doing 20 units, you don't just make $250, but 20*$250 and that particular groups technologies claim to have no slippage.

Not only do I offer signals, I take multiple units besides that, but the guarantee against slippage no matter the size is something only that website can do.

If your strategies are really an edge, it doesn't matter how much money's behind you. Go Tom Baldwin on them!

The dreams I've had regarding what this looks like are basically moving the market +/-2 ticks in both directions.
 
Quote from tradingjournals:

The Meaning of A Trading Edge: Please describe what it means to you. I asking for it because it is my belief that a trader is part of the loop to which the edge is attached/related.

Try to be crisp/succinct in your description, but you can think out loud if you desire/require.

Write it in your own words. Do not be concerned about what others think or would say about your edge description. There is no single perception of an edge, because people and their perceptions/circumstances/etc are generally different.
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Making a spread around fair value, then passively waiting for someone else to actively pay above, or receive below.
 
Quote from bwolinsky:

C2's compensation practices are unfair and nobody makes money there.

* How long did it take for you to figure that out?

Not only do I offer signals, I take multiple units besides that, but the guarantee against slippage no matter the size is something only that website can do.

**Do you offer a free next month if there is a loss at the end of the current month?


The dreams I've had ...

.***WHEE!!!
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:D
 
Quote from Wide Tailz:

Evidently, back testing does - especially if done with genetic optimization.

:D
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Buying a trend trading course from a vendor can give you an edge?

We're you back testing anything else besides the system?
 
Quote from oilfxpro:

Buying a trend trading course from a vendor can give you an edge?

We're you back testing anything else besides the system?
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If someone is willing to share code with you to do backtests, that's what you need. If they won't share it, then the only other way to believe what somebody says is by checking their transactions with their broker.

Multi-demensional solutions via genetic optimization are indeed the greatest weapon to use in analysis. Knowing your strategies are consistent is helpful when confirming robust models.
 
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