What is your edge ?

[TheBlackHand]

Quote from deaddog:




Even LBR concurs with the importance of a trading plan.

"Even LBR"

She's just another retail guru. To be avoided like all retail guru's.

She may have made a few bucks in the Eurodollar pit, but the transition to trading educator is another sign of a pit trader who couldnt cut it on the screen.

She resorted to peddling books, trading rooms, and web services hoping that most retail traders will never understand that standing in a eurodollar pit is to momentum trading in a retail environment what selling apples is to selling airliners.

Did she ever sell courses on how to trade in the eurodollar pit? why doesnt she sell courses on trading eurodollars on the screen? Hmmm. Surely there is more synergy there?

 

[logic_man]

Quote from cornixforex:

I don't believe in mechanical/quantifiable edges available to the retain traders, not in the liquid markets at least. World's top minds and supercomputers seek and exploit those, so it's stupid to compete with them in their favourite game.

But one can have an edge by watching their (institutional) actions long enough on the chart (good news is they can't hide their actions from being reflected in the price history), learn their behaviour patterns and jump in and out when those repeating patterns appear.

That's the edge which can't be stolen or eroded, it evolves over time as trader watches his favourite market more and more and only gets better.

I agree with this idea of following the "smart money". You are right that as long as price is public, they can't hide their buying and selling.

I consider my edge, in some ways, that I am the "smartest dumb money". That's all I aspire to be and I know exactly how to be that day in and day out. Be that consistently and you will be fine. It's when you try to leapfrog to the top of the smarts heap that you screw yourself up.

But, one place I disagree is that this is not a mechanical edge. Once you decipher the logic behind the "smart money", it does become mechanical to follow it. There are a couple of places where it becomes slightly ambiguous what to do, but I think that I only look at it as ambiguous because those are situations where I don't have enough data points to make a hard and fast rule. My usual approach in those situations is to make whatever choice makes it harder to get a valid trade entry signal because there are typically enough signals where it is not ambiguous that I don't need to relax my discipline just to take a trade. Everything else is driven by rules.

 

[achilles28]

Quote from cornixforex:

I don't believe in mechanical/quantifiable edges available to the retain traders, not in the liquid markets at least. World's top minds and supercomputers seek and exploit those, so it's stupid to compete with them in their favourite game.

But one can have an edge by watching their (institutional) actions long enough on the chart (good news is they can't hide their actions from being reflected in the price history), learn their behaviour patterns and jump in and out when those repeating patterns appear.

That's the edge which can't be stolen or eroded, it evolves over time as trader watches his favourite market more and more and only gets better.

Care to throw us a few bread crumbs?

 

[achilles28]

Quote from logic_man:


But, one place I disagree is that this is not a mechanical edge. Once you decipher the logic behind the "smart money", it does become mechanical to follow it. There are a couple of places where it becomes slightly ambiguous what to do, but I think that I only look at it as ambiguous because those are situations where I don't have enough data points to make a hard and fast rule. Everything else is driven by rules.

Can you talk more about the logic behind the smart money?

 

[oilfxpro]

Quote from achilles28:

Care to throw us a few bread crumbs?

Otherway , could your throw a few crumbs of edge into the $100 Oanda account!, where the big traders with big balls hang out

 

[oilfxpro]

Quote from TheBlackHand:

"Even LBR"

She's just another retail guru. To be avoided like all retail guru's.

She may have made a few bucks in the Eurodollar pit, but the transition to trading educator is another sign of a pit trader who couldnt cut it on the screen.

She resorted to peddling books, trading rooms, and web services hoping that most retail traders will never understand that standing in a eurodollar pit is to momentum trading in a retail environment what selling apples is to selling airliners.

Did she ever sell courses on how to trade in the eurodollar pit? why doesnt she sell courses on trading eurodollars on the screen? Hmmm. Surely there is more synergy there?

+1

good intelligent posts.keep them up!

 

[oilfxpro]

Quote from cornixforex:

I don't believe in mechanical/quantifiable edges available to the retain traders, not in the liquid markets at least. World's top minds and supercomputers seek and exploit those, so it's stupid to compete with them in their favourite game.

But one can have an edge by watching their (institutional) actions long enough on the chart (good news is they can't hide their actions from being reflected in the price history), learn their behaviour patterns and jump in and out when those repeating patterns appear.

That's the edge which can't be stolen or eroded, it evolves over time as trader watches his favourite market more and more and only gets better.

Finally a great post.

 

[cornix]

Quote from logic_man:


But, one place I disagree is that this is not a mechanical edge. Once you decipher the logic behind the "smart money", it does become mechanical to follow it. There are a couple of places where it becomes slightly ambiguous what to do, but I think that I only look at it as ambiguous because those are situations where I don't have enough data points to make a hard and fast rule. My usual approach in those situations is to make whatever choice makes it harder to get a valid trade entry signal because there are typically enough signals where it is not ambiguous that I don't need to relax my discipline just to take a trade. Everything else is driven by rules.

I probably expressed it wrong. Yes, of course trading plan should be rule based, no life without the rules. But the criteria for entry are just more subjective than say typical quant models, they are based more on sort of "tape reading" the big boys rather than exactly quantifiable trading model approach.

 

[cornix]

Quote from achilles28:

Care to throw us a few bread crumbs?

As far as I know you mastered the same stuff quite a long time ago.

Any technical trading is just the old tape reading craft basically, nothing else.

 

[cornix]

Quote from oilfxpro:

Otherway , could your throw a few crumbs of edge into the $100 Oanda account!, where the big traders with big balls hang out

Please quote at least one of my posts where I said I am a "big trader" with "big balls".

Otherwise you officially admitted yourself having quite a weird imagination if not say delirium.