TheBlackHand
Guest
Does it?
I'd say that would depend on the quality of ones edge. However if one struggles in defining ones edge, one will probably struggle with psyche. It makes perfect sense does it not?
What is your edge ?
- Thread starter oilfxpro
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Does it?
I'd say that would depend on the quality of ones edge. However if one struggles in defining ones edge, one will probably struggle with psyche. It makes perfect sense does it not?
Let us say a trader has quality edge ( and you say that it is not psyche) , what happens in reality when the edge fails or is eroded or fails temporarily?
Most damage to traders is done by themselves.What is going to save trader from self damage?Phsyche?
Bear in mind ,there is a random distribution between wins and losses for any given set of variables that define an edge.
Anything can happen.
http://www.tischendorf.com/2010/12/12/mark-douglas-video-interview-trading-psychology-quotes/
now u are stubborn. you have made yourself to look ridiculous for a 2nd time. it is saying over the course of a year he averages 1.8% per trade. do u understand enough english to understand the meaning of per trade.
"My calculated edge based on actual trades is 1.8% or for every $1000 I put into a trade I expect to make $18. No I donât make that on every trade, sometimes more sometimes a lot less but over the period of a year Iâm fairly confidant that I will come close to that number."
i suggest you sit down with your calculator or with an abacus if you are competent enought to use one, to figure out his true rate of return. if everyday he turned over his capital once his rate of return would be 250 x .018 x1000 (original capital) = 4500.
his annual return would be 350% on his capital which would be a great performance.
TheBlackHand
Guest
...then it isn't a proper edge. You're mistaking 'edge' for a method with (supposed) positive expectancy. the 2 are not the same.
An edge is something inherent to the approach.
A system with positive expectancy suggests nothing more than some variables backtested over an amount of time and some poor sucker starring at his belly wondering why his method he spent so long building no longer works, then starts beating himself up for it, blaming himself for sloppy execution etc when in reality he has a negative edge because his inherent approach is based on technical analysis, hard stops, and other junk he (and the other 80% of losers) has been reading about.
Technical Analysis provides no edge in itself fyi
BTW Douglas isnt an authority on trading. Hes an author of pop psychology in the niche of trading.
TheBlackHand
Guest
I'll let you have the last word on this. Good luck with what ever it is you are trying to prove (How pedantic you are perhaps?).
Quote from TheBlackHand:
I'll let you have the last word on this. Good luck with what ever it is you are trying to prove (How pedantic you are perhaps?).
This is best way for me to define my edge. How do you suggest an Edge be defined?
1.8% is not the annual return. The annual return is dependant on the number of trades made, the length of time the trades are held and the position size in relation to the account size.
When I state that Iâm confident in that number as it hasnât varied more than a couple percentage points over the last few years. My equity curve looks like a crippled snake but the overall trend is up.
TheBlackHand
Guest
Quote from zdreg:
Quote from TheBlackHand:
I'll let you have the last word on this. Good luck with what ever it is you are trying to prove (How pedantic you are perhaps?).
Was that it?
Was that your last word?
I was expecting something a little more irate and negative for some reason.
Who's /QUO?
