What is an "edge"?

[2FT]

An edge was knowing China/US would agree to cancel tariffs... in advance.

At one price in the N225 mini on JPX, at around 13:15 Tokyo: 10,300 cars paid on the offer while only 3,000 hit back into the bid. On a really quiet narrow day with below normal volume. Didn't move price at all really. Continued to drift on low volume after that. ES wasn't doing any volume at the same time. I have never seen that size at one price. Fck knows who was hidden on the offer, and why they were. None of it makes sense. Then made new daily and 2019 highs in the 15 minutes into rth close, without any news on the wires. Then the news hit and the o/n session opened with a stop run, and reached 300 prices higher than the 10k lot was filled.

 

[easymon1]

5 tick

5-tick rinse & run, LOL.
I love it. You should trade-mark that.

 

[SimpleMeLike]

The word edge is anything that has proof of consistenly making money overtime , legally or illegally.

For me, I am building my day trading edge/skill, by constantly studying and practicing trading daily and tracking the results in a spreadsheet.

 

[Frederick Foresight]

5) Good entry is useless, however, if your timing is off.

How can an entry be good if the timing is off?

4) Good entry is a must. Good exit is a must.
5) Good entry is useless, however, if your timing is off.
6) There is no good exit. There is only a proper exit (eg. let your winner run, cut your losses).

?

 

[Banjo]

An edge was knowing China/US would agree to cancel tariffs... in advance.

At one price in the N225 mini on JPX, at around 13:15 Tokyo: 10,300 cars paid on the offer while only 3,000 hit back into the bid. On a really quiet narrow day with below normal volume. Didn't move price at all really. Continued to drift on low volume after that. ES wasn't doing any volume at the same time. I have never seen that size at one price. Fck knows who was hidden on the offer, and why they were. None of it makes sense. Then made new daily and 2019 highs in the 15 minutes into rth close, without any news on the wires. Then the news hit and the o/n session opened with a stop run, and reached 300 prices higher than the 10k lot was filled.

Asymmetrical information or structural,arbing exchanges etc. for as long as it last, are true edges. Everything else is masturbation.

 

[Scataphagos]

For me Google definition of the word “edge” would be sufficient:
A quality or factor that gives superiority over close rivals or competitors.

Unfortunately beating competitors is not the name of the game in the markets. Traders need to win "over the markets"... and there are NO edges (legal) for that.

 

[guru]

Unfortunately beating competitors is not the name of the game in the markets. Traders need to win "over the markets"... and there are NO edges (legal) for that.

Do you think that Rentec has an edge? And do they have competitors?
(I’ve read that they specifically worry about their competitors learning their strategies or stealing their employees)

Though Google definition is not specific to trading and I thought it’s still pretty good. It’s the definition of the English word, which implies how most people would understand it in general. Specifics may depend on context.

 

[Scataphagos]

My view is that Rentec DOES have an edge... "front running"... which is illegal. But the regulators let them get away with it because (1) they add liquidity to the market, (2) they steal only a little bit on each trade, and (3) they are the right people.

I have no proof and would not accuse without it... just my view.

Years ago I had an edge... legal one... trading mutual funds... until the revenooers discovered how well it worked and put a stop to it.

 

[schizo]

So far, here's what I've manage to come up with:

1) Edge is a pattern. It could simply be a price pattern on the chart, or it could be a behavior pattern (eg. the interaction between me and/or the market).
2) Edge must be repeatable. It can be repeated, replicated, duplicated each and every day.
3) Edge has a high probability of success.
.
.
.
4) Good entry is a must. Good exit is a must.
5) Good entry is useless, however, if your timing is off.
6) There is no good exit. There is only a proper exit (eg. let your winner run, cut your losses).
.
.
.

Carrying on with the earlier post...

7) Good entry is critical, but good exit is even more crucial.
8) Good entry is one with good risk:reward ratio.
9) Getting in too early or too late is a high risk trade.
10) Getting out too early or too late is a low reward trade.
.
.
.

 

[Wheezooo]

Unfortunately beating competitors is not the name of the game in the markets. Traders need to win "over the markets"... and there are NO edges (legal) for that.

Funny, I never tried to beat the market. It was the other players I went after.