Your Edge

[anglagard]

I have an edge in specific patterns, not the typical type, but a collection of obscure price patterns a kind master trader shared at no charge in exchange for well, becoming his scanning servant plus confidentiality, which I gladly accepted and honored.

Joe

 

[gmst]

Quote from anglagard:

I have an edge in specific patterns, not the typical type, but a collection of obscure price patterns a kind master trader shared at no charge in exchange for well, becoming his scanning servant plus confidentiality, which I gladly accepted and honored.

Joe

Patterns based edges have always intrigued me because I find it very hard to believe that anything other than double tops/ bottoms (because they denote a support or resistance) will have an edge.

Very curious, if you can share following on your system, without giving system away:
1. Are the patterns on intraday data or on daily candles ?
2. how many years it has been working and in which markets ?
3. performance viz. win size:loss size ratio, win %, overall PF ?

Thanks

 

[dom993]

Quote from ssrrkk:

Why do you think you have an edge over your competition? Since the poll mechanism doesn't allow one to choose multiple items and I am sure people will not want to just pick one, I will just ask people to reply and say which ones are important for them.

1. you invented / validated a completely novel strategy
2. your strategy is generally known but difficult to implement by most
3. your strategy is known but not widely used
4. above average back-testing abilities allowed you to find parameters that work
5. you stumbled on a unique combination of known strategies / parameters that you think not many have found
6. you can identify patterns better than anyone else
7. you can execute faster than others even with a normal internet connection
8. you can execute more consistently everyday compared to others
9. you have better money / risk management than others
10. you can stay calm and never make mistakes under pressure
11. you developed and use a novel computational or graphical tool that gives you an edge
12. you have better math skills than most and developed a quant strategy
13. you have a way faster connection than most
14. you use multiple strategies and know when to switch better than others
15. you have more trading capital than most
16. you have better commission and broker execution than most
17. you have access to better data than most
18. none of the above but I have an edge (please reply and explain)
19. none of the above, trading is not that hard, you don't need a huge edge
20. being slightly above average in several of the above gives me an edge

18. My only automated trading system success to date is based on a specific market inefficiency.

Aside from that, I am still fighting with the development/validation of a particular reversal price-pattern (day-)trading system ... 2 main areas of fighting are false positives & undetected instances ... in both case, the primary issue is "correct" identification of pivots points. I would say that solving this will definitively enable 6) identify patterns better than "anyone" else

Being an automated trader, 7) 8) 10) certainly apply

 

[anglagard]

Quote from gmst:

Patterns based edges have always intrigued me because I find it very hard to believe that anything other than double tops/ bottoms (because they denote a support or resistance) will have an edge.

Very curious, if you can share following on your system, without giving system away:
1. Are the patterns on intraday data or on daily candles ?
2. how many years it has been working and in which markets ?
3. performance viz. win size:loss size ratio, win %, overall PF ?

1. They work in all time frames, but the higher the time frame the better, not very common though.

2. Very long time, I can personally vouch for at least a century.

3. Confidential

Joe

 

[oldtime]

if that's what you are calling and edge, no wonder everybody thinks they have one. I would call most everything on the list just plain old common sense. It would be hard just to breakeven without most of them.

 

[gmst]

Quote from anglagard:

1. They work in all time frames, but the higher the time frame the better, not very common though.

2. Very long time, I can personally vouch for at least a century.

3. Confidential

Joe

Thanks

 

[jnbadger]

Quote from oldtime:

if that's what you are calling and edge, no wonder everybody thinks they have one. I would call most everything on the list just plain old common sense. It would be hard just to breakeven without most of them.

Not necessarily. There are different different degrees for each one.

But I have to go with 20, in addition to being on an incredible team. All independent daytraders, and only half of us have even been to college.
There is no f...ing way I would still be around without them.

 

[oldtime]

Quote from jnbadger:

Not necessarily. There are different different degrees for each one.

But I have to go with 20, in addition to being on an incredible team. All independent daytraders, and only half of us have even been to college.
There is no f...ing way I would still be around without them.

all right, I'm not going to get into it with you, to me it's just semantics. I kept wondering what this "edge" is everybody talks about. I think of an edge more as running a crap game. But I suppose there's some shooter that thinks he has an edge.

the broker has an edge
the trader has a list of 20 things he calls an edge.

 

[OddTrader]

Quote from oldtime:

if that's what you are calling and edge, no wonder everybody thinks they have one. I would call most everything on the list just plain old common sense. It would be hard just to breakeven without most of them.

I agree.

21. All of the above plus many more, and beyond.

 

[jnbadger]

Quote from oldtime:

all right, I'm not going to get into it with you, to me it's just semantics. I kept wondering what this "edge" is everybody talks about. I think of an edge more as running a crap game. But I suppose there's some shooter that thinks he has an edge.

the broker has an edge
the trader has a list of 20 things he calls an edge.

Honestly, I've never understood the whole edge argument, so I agree with you.

If you make money you have an edge? If you don't make money you don't have an edge? Ok, fine. But what about the guy who uses math every day and can't describe his edge, but who is very successful. Is math his edge? Perhaps, but his true edge is probably more intangible than most of us would like to admit.

Dustin once said a long term edge is getting a feel for the market through experience. Try to quantify that, much less explain it.