Conceptually define your trading edge

Discussion in 'Technical Analysis' started by Calmness, Sep 8, 2019.

  1. RedDuke

    RedDuke

    Buy low sell high and vs
     
    #11     Sep 8, 2019
    _eug_ likes this.
  2. Handle123

    Handle123

    The more experience you have, the more one can trade crossing moving averages, just cause they cross does not mean one reverses, it is signals the next set of rules to find a signal. Crossovers do work, but moving averages have to be longer and based on weekly or even monthly timeframes then multiplied for dailies.

    As far as defining my "Edge" = Risk Management and Equity curve, Risk is only part of trading that can be controlled more than 50% for me. Equity curve based on separate open and closed positions by backtesting the "mean" of drawdowns or possibilities.
     
    #12     Sep 8, 2019
  3. Time the market around blue chip industry leaders ex-dividend date, using options. It's like a time warp ...
     
    #13     Sep 8, 2019
  4. ITYM "demand". HTH, HAND...
     
    #14     Sep 8, 2019
  5. padutrader

    padutrader

    cross overs often signal a pull back..........so that is why people say cross overs fail.......or whip saw
     
    #15     Sep 8, 2019
  6. krugman25

    krugman25 Guest

    Positive P/L - The only edge that matters.
     
    #16     Sep 8, 2019
  7. Calmness

    Calmness

    Statistical analysis again is more meaningful when you start varying the parameters to find the best fit for a particular instrument or time period.

    I shall post a rough example.

    Buy here , just the concept is enough on which a system can be based.

    Like just post your law, "every action has equal and opposite reaction", on which your system is based. We intend not to pollute the concept of the law with the details of the rocket , fuel, engine, etc.. Its just the law, the basic concept on which your system is based.
     
    #17     Sep 9, 2019
  8. wrbtrader

    wrbtrader

    Does this mean you do not have any chart examples of tighter moving averages are different between two different instruments or of moving average crossover eating away the profits of the last trend ???

    I'm just trying to visualize your edge considering you must be able to see it on your charts.

    wrbtrader
     
    #18     Sep 9, 2019
  9. Calmness

    Calmness

    I shall post a chart, soon.
     
    #19     Sep 9, 2019
  10. trader1974

    trader1974

    Follow the price, this is deeper than it seems.
     
    #20     Sep 9, 2019
    Calmness likes this.