What is Not an edge?
- Thread starter OddTrader
- Start date
Following the above principle, I would think the general/simple type of money management (such as position sizing) that every trader is able to do when following public known formulas is Not an edge.
However, advance type of money management that can control risk, with a robust and reliable manner, under extreme market conditions should be an edge.
A venn diagram can be used to answer this question.
Personally I do not create or use edges; BUT what I do is effective and efficient in terms of making money. Most would consider what I do describes an edge to some extent. So there is a kind of overlap.
I partner with the market to let the market tell me what to do and I obey. the market offers and I take the full offer.
I'm sure people who orient to edge trading find me "unbelievable" and a person who fantasizes.
What is not an edge is using a system of operation of the market as a tool to "get" what the market is dong all of the time and to "take" the full offer of the market.
Some will say this is an edge or a collection of edges.
All the edges do fit into the system of operation of the market.
Edges external to the market must lie in the trader's environment and specifically with the trader. My partnership is simple I participate and I obey the market since the market is always correct.
Another vast region on a Universal Venn diagram of EDGE is the "failure" region. What is not an adge does include all the causes and consequences of failure. The CW belief system is loaded with beliefs and myths that are not truths of the market. OODA is a prime example. Betting and predicting are not necessary at all. They fit as NOT edges.
statistics as in baseball are Not edges. stats as tools are not edges either. Signals from stats could be considered edges if the signals were deduced from the system of operation of the markets.
A general complete algorithm that takes into account the market variables is an edge. What, then, is NOT an edge is any algorithm that is not complete. This is violated by the financial industry more regularly than any other general deductive consideration.
Doing inductive reasoning is NOT an edge in development and design.
Most of you will not do well because you are mostly using NOT edges. Why couldn't Gem figure this out. Instead he says a slogan like a market'er and he pleads for getting educated when education is a NOT edge (the utility of the mind is the edge). Gem for Dummies.
Personally I do not create or use edges; BUT what I do is effective and efficient in terms of making money. Most would consider what I do describes an edge to some extent. So there is a kind of overlap.
I partner with the market to let the market tell me what to do and I obey. the market offers and I take the full offer.
I'm sure people who orient to edge trading find me "unbelievable" and a person who fantasizes.
What is not an edge is using a system of operation of the market as a tool to "get" what the market is dong all of the time and to "take" the full offer of the market.
Some will say this is an edge or a collection of edges.
All the edges do fit into the system of operation of the market.
Edges external to the market must lie in the trader's environment and specifically with the trader. My partnership is simple I participate and I obey the market since the market is always correct.
Another vast region on a Universal Venn diagram of EDGE is the "failure" region. What is not an adge does include all the causes and consequences of failure. The CW belief system is loaded with beliefs and myths that are not truths of the market. OODA is a prime example. Betting and predicting are not necessary at all. They fit as NOT edges.
statistics as in baseball are Not edges. stats as tools are not edges either. Signals from stats could be considered edges if the signals were deduced from the system of operation of the markets.
A general complete algorithm that takes into account the market variables is an edge. What, then, is NOT an edge is any algorithm that is not complete. This is violated by the financial industry more regularly than any other general deductive consideration.
Doing inductive reasoning is NOT an edge in development and design.
Most of you will not do well because you are mostly using NOT edges. Why couldn't Gem figure this out. Instead he says a slogan like a market'er and he pleads for getting educated when education is a NOT edge (the utility of the mind is the edge). Gem for Dummies.
Besides the two classes (let us name them A and B) of edges mentioned above, most other things (mainly for the sake of leveraging) would be merely multipliers or amplifiers of these two edge classes, I would say.
These multipliers and amplifiers (since almost everyone knows how to do them with about the same or similar ways) are Not really edges, imo.
These multipliers and amplifiers (since almost everyone knows how to do them with about the same or similar ways) are Not really edges, imo.
Let us assume there is a edge. In any market there are three types of players: the winners on the long side, the winners on the short side, and the rest (the market fuel). Having the edge means one would need to be among the winners, among whom there is an elite: those who never see a draw down! When the elite of both sides meet this law takes place: if you cannot beat them join them or increase the distance from one another.
Traders having both classes A and B edges should be able to carry out their trades at better and earlier timing than many of their competitors do.
Edge traders are basically front-runners. (Not in the conventional meaning)
Therefore timing is one of the key factors for edge. My 2 cents here.
Not an edge (and sticking with your original thread parameters Odd)
Positive expectancy â or anything containing those words
Chart types (bar vs candle)
Chart intervals
Indicators (though I think Jack would disagree)
Patterns
A particular R:R (one canât even calculate actual reward consistently/ accurately until after each exit)
MAE/ MFE (this one will probably rub some the wrong way)
Any resemblance/ comparison to gambling
RN
Positive expectancy â or anything containing those words
Chart types (bar vs candle)
Chart intervals
Indicators (though I think Jack would disagree)
Patterns
A particular R:R (one canât even calculate actual reward consistently/ accurately until after each exit)
MAE/ MFE (this one will probably rub some the wrong way)
Any resemblance/ comparison to gambling
RN