What is Not an edge?

[cdcaveman]

Quote from xelite777:

Selling options DOES give you an edge because the true value of an option is only known to the insiders/sellers. It does not mean that you cannot go broke if you don't know what are you doing though.

Now watch, the option sellers will soon come and absolutely deny that...

In a general sense selling options has no inherent edge... Options are in theory priced such that over time you can not win or lose either buying or selling them.. If you have a general bias to the idea that selling them has edge you inherently will go find facts to support that idea.. Plenty of substance out there to take that view.. But this is not an edge

 

[xelite777]

Quote from cdcaveman:

In a general sense selling options has no inherent edge... Options are in theory priced such that over time you can not win or lose either buying or selling them.. If you have a general bias to the idea that selling them has edge you inherently will go find facts to support that idea.. Plenty of substance out there to take that view.. But this is not an edge

What did I tell you, the option sellers will come and deny what I just said 3 posts above

 

[xelite777]

Quote from trader198:

an edge means you produce something you expect.

As far as trading is concerned, you have an edge if you simply know how to consistently profit from non-random price movements. This can only be accomplished through intensive backtesting.

The other type of edge comes from illegal insider information (hello Gordon Gekko) and/or superior trading equipment (ultra fast access to information and data feed, for arbitrage purpose for instance).

 

[cdcaveman]

Quote from xelite777:

What did I tell you, the option sellers will come and deny what I just said 3 posts above

i'm not an option seller.. anymore then i'm a buyer...

 

[fxwannaB]

An edge is something new, an innovation, something that hasn't yet been exploited...

anything that is known, that has a name is not an edge.

 

[OddTrader]

Edge is the kernel/ center/ heart of a trader's most important/ critical substance.

Without a valid edge, or when an edge is outdated, the trader cannot attain his previous top performance anymore, even all the auxiliary components (such as position sizing formula) surrounding the kernel are still working well as expected.

Then the trader has to work hard on improving the old edge, possibly again and again.

We may apply the same auxiliary components (such as extremely low commission rates, extra fast connections) to a newly improved edge kernel.

All these auxiliary components are Not edges.

 

[OddTrader]

Quote from fxwannaB:

An edge is something new, an innovation, something that hasn't yet been exploited...

anything that is known, that has a name is not an edge.

+1

 

[jnbadger]

Lack of experience. Not an edge. Usually.

 

[OddTrader]

Quote from jnbadger:

Lack of experience. Not an edge. Usually.

+1

Having a lot of experience however without adequate analytical and innovative skills --- Not an edge. Most likely.

 

[dbphoenix]

Quote from OddTrader:

+1

Having a lot of experience however without adequate analytical and innovative skills --- Not an edge. Most likely.

Actually very likely. I know people who've been at this for nine years and more and can barely cover expenses. Experience in and of itself is not an edge.