What is an EDGE in the strategy?

[Buy1Sell2]

Prudent Risk Management is the mother's milk of successful trading.

 

[dealmaker]

An edge is simply knowledge of the direction of money flow and then positioning yourself to take maximum advantage of it.

Very narrow view of edge. Edge can be anything eg not cutting corners in due diligence.

 

[Gotcha]

Folks, traders only have one item available that can set their performance apart from other traders results, and that is the ability to manage risk. Most traders are unable to do this even though they can look at charts many times and come up with direction.

You can manage risk very well by always having a stop in the market, and never moving it, so that you're always stopped out where you want to be. But trust me, I know, this isn't enough to make money.

You also need the right target, and you also need it to hit often enough.

 

[USDJPY]

The edge is the side of a knife you use to slice a whole in other traders's trousers to empty their pockets.

 

[lawrence-lugar]

Don't get confused, or obsessed, with terminology and other fluff words of lingo;
Just trade good, or trade bad. -- whatever that may personally mean to you.

Alot of things in life...are relatively simple, but for some reason...it blossoms into an overly complicated thing.

 

[bashatrader]

Edge is what works today.

Edit: I looked for this article about the simplest edge. Interesting...

 

[Needless Promo]

My edge is not setting a stop-loss and only trading positions that align with my long-term outlook. That is, buying low and holding until it pays off with an instrument like the GBPJPY. The nice thing about leverage is I can carry over my losers until they become winners, if there's a massive move down I can sit on it and if my long-term outlook changes I can liquidate. The only problem is getting swamped with mod-term positions.

 

[lovethetrade]

An edge in trading is a "competitive advantage" you have in the market to derive long-term profits from buy and sell activities. This can be ANYTHING that gives you an advantage.

 

[profitlocker]

Just trade good, or trade bad

Easier to say than do. The reality is that you have to define good and bad to succeed. It's a monumental task that most people aren't wired for.

 

[protrader880]

An edge means you have a good strategy. Most strategies are shit because they have a negative edge meaning over 100 trades, you lose more trades than you win, or your risk reward is 1:1 or less than 1:1. A positive edge means your strike rate over 100 trades is more than 50 wins, or that your risk to reward is 1:2 or 1:3 and up. Edge means you either win win more trades in strike rate or have a higher risk to reward. Very simple.