I went to hell and back. Still no edge.
What do you do to get your edge?
- Thread starter SoyUnGanador
- Start date
Serious, you have none?
Serious, you have none?
Paper thin.
All so called "edges" are well known to many, many people. They are not edges at all, but how you play your entries and exits, letting winners run to maturity and cutting losses short----that's the only true edge in trading.
What if your hit rate doesn’t make your asymmetric Reward to Risk profitable ?
I mean that’s definitely a very important part of the puzzle. But you can’t deny that these aren’t the only ones.
You can definitely tweak the odds into your favor.
Every great traders will tell you that it’s no good to be too early / late or against the trend (if there is a trend at all).
The market dictates what you should be long and in what quantities by its action.
But it’s also a matter of Selection (Filters) & Timing (Signals).
A common mistake is simply no selection when you can’t milk every animals, everywhere and everytime.
Not all setups are alike neither. There are A+ setups and there are C- setups of the same pattern.
Last edited:
There is no edge in being able to find A plus and C minus setups. Everyone is able to do that. However, it's what you do with the setups that is the edge. That's PRM. ---and the only true edge in trading is the ability to implement PRM.
Well … I believe there is an edge in being able to make a difference btw the quality of a setup.
If you avoid the least reliable ones then you should (in theory) get fewer false signals.
Agree about Prudent Risk Management. Always look to minimize the worst case as the trade unfold and follow your winners to the limits.
I think that is the first lucid description you have ever made regarding PRM.
Anyone can calculate probabilities of the setups they choose to recognize. In which case, "it's what you do with the setups that is the edge" rings true.
However, if there is secret sauce associated with determination of setups, edge can be something other than PRM.
