I'm not on his list, idiot.
Of course, neither are you, so clearly he is discriminating.
What defines an "Edge".
- Thread starter redbaron1981
- Start date
I'm not on his list, idiot.
Of course, neither are you, so clearly he is discriminating.
Not discriminating just being selective.
That's what I meant
And you are correct to be so, given the turn this thread has already taken.
Yes--this is why prudent money management is the only true edge in trading.
I can only assume you are speaking of the educator. Yes--as soon as there is differing viewpoint, the naysaying and censorship advocacy come in.
I disagree. Their are edges. You just need to find them and they are not anything like what the market itself pushes. For example, no one pushes TA more than FX dealers. Fx dealers like FXCM have entire departments dedicated to teaching customers about TA.
At the same time, FX dealers profit big when the traders lose money. So they know that TA will always lose money in the long run and cause traders to trade more often, losing money faster and enriching the dealer faster.
Not to mention the fact that consumer facing brokers/ banks-- if they have TA departments, they are part of marketing units not research---
Game. Set. Match.
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I think i saw/witnessed an edge on ET within the last 6 months or so and was quite impressed.
It wasnt the random, pot shot , top or reversal call that many get all giddy about and blurt out
asynchronously.
It was proffesional level trader actually telling people to expect large moves and volatility in currencies based on what were present conditions. No doubt he has the constitution to profit from it. Another guy may, or could have said the same thing but without his type of foundation
and experience it is probably not the same.
If thats not an edge I still want one.
It wasnt the random, pot shot , top or reversal call that many get all giddy about and blurt out
asynchronously.
It was proffesional level trader actually telling people to expect large moves and volatility in currencies based on what were present conditions. No doubt he has the constitution to profit from it. Another guy may, or could have said the same thing but without his type of foundation
and experience it is probably not the same.
If thats not an edge I still want one.
Strictly (and accurately) speaking, your edge, should you have one, is the mathematical advantage you have over the "house," i.e. the market itself. This is a value expressed as a %. In order to calculate your edge, assuming you have one, you need to know your win rate and payoff, i.e. the "odds."
As an example, one set up of mine has a 50% "win rate" (full profit objective vs full stop out). The payoff is $1 to $1.26 on. The edge, or mathematical advantage is 10.32% Over the long run, due to the nature of bets made on market movements, this is a less than perfect description of the true edge - unlike poker, blackjack, sports betting, the market is not binary on each bet, i.e. some instances yield partial profit, or a smaller loss than the initial stop, or breakeven less costs, or breakeven plus costs. Over the long run, the actual advantage on this set up tends to be somewhat higher.
I do not think you will find much useful information on this useful subject here at ET, or amongst retail traders in general. The people who understand the relevance of the math and its usefulness are gamblers - not degenerate addicted gamblers (plenty of those here at ET, though nearly every one of them will deny it with righteous indignation) - but pro gamblers who know how to identify an edge (advantage) and understand that money management can be used to maximize the effects of that advantage, but that money management itself is not an advantage.
A good place to start is edwardothorp.com The author himself makes nearly all of his publications available for free. I would suggest you start with his Mathematics of Gambling, especially chapter 1 "Introductory Statement" and Chapter 9 "Optimal Betting." You may need Chapter 8 "Mathematical Systems" to put chapter 9 in perspective, though I think you can take Chapters 1 & 9 together and get a good springboard for further study. You can find Mathematics of Gambling in 4 parts at the link below:
http://edwardothorp.com/id16.html
As an example, one set up of mine has a 50% "win rate" (full profit objective vs full stop out). The payoff is $1 to $1.26 on. The edge, or mathematical advantage is 10.32% Over the long run, due to the nature of bets made on market movements, this is a less than perfect description of the true edge - unlike poker, blackjack, sports betting, the market is not binary on each bet, i.e. some instances yield partial profit, or a smaller loss than the initial stop, or breakeven less costs, or breakeven plus costs. Over the long run, the actual advantage on this set up tends to be somewhat higher.
I do not think you will find much useful information on this useful subject here at ET, or amongst retail traders in general. The people who understand the relevance of the math and its usefulness are gamblers - not degenerate addicted gamblers (plenty of those here at ET, though nearly every one of them will deny it with righteous indignation) - but pro gamblers who know how to identify an edge (advantage) and understand that money management can be used to maximize the effects of that advantage, but that money management itself is not an advantage.
A good place to start is edwardothorp.com The author himself makes nearly all of his publications available for free. I would suggest you start with his Mathematics of Gambling, especially chapter 1 "Introductory Statement" and Chapter 9 "Optimal Betting." You may need Chapter 8 "Mathematical Systems" to put chapter 9 in perspective, though I think you can take Chapters 1 & 9 together and get a good springboard for further study. You can find Mathematics of Gambling in 4 parts at the link below:
http://edwardothorp.com/id16.html
True "edges" is like the formula of Coke, you might think you know what one is, but never get close enough, and those who have found "one" they did so by error of trying to find something else and they will die with it or in one's will.
My day trading MM is opposite of yours, mine tries to keep me out of the market not in it. It looks for reasons of not taking trades and get out quickly-time is never on one's side unless you selling options.
there is no "Edge" in the marketplace...that sounds more like a cheesy marketing lingo term . the only true Edge is insider information 
well, if you're just beginning in this trading world...then I suppose...Everything (that you don't know or have experience with) may seem like an Edge.
well, if you're just beginning in this trading world...then I suppose...Everything (that you don't know or have experience with) may seem like an Edge.