IMO coding what the brain can process along the lines of "context" is very very hard to do . I agree with you. One once said to me that the best edges are not programmable. ie context
Long when they both cross up, short when they both cross down....DONE!!1! I will sell you my "edge" for $10k
Hi, I have too have an edge in trading, The edge is as such, a simple term called "arbitrage", earning risk free through spreads. I seriously think alot of "traders" (the term that makes them feel good), who keep chatting about operational rules, can never have an edge. Those who have their own "edge" are really an expert at their own niche. One "strategy" "edge" or "arb" I can easily think of, through carry trade. Shorting USD and buying Yuan, simply earning the interest rate spread, is a simple edge by itself already. Of course the need to analyse the economics, when to reverse these positions, requires some kinda of kownledge and some experience. As for backtesting, I don't see how you can backtest since it is an "edge", its suppose to work as long as "it" (arb) exists. So do find your own niche !
IMO be careful what you mean by profit maximization. If you're in this for the long haul you can't get too greedy. Take the profits even if they are small. If you miss out on an upward run, so be it. At least you save yourself by missing out on all the times the market goes the other way. The way I define my edge is the ability to not feel like a king after a really good trade. Don't let it get to you. If you notice yourself getting too cocky and confident the best thing you can do is stop.
Today the term "edge" is just used to hawk and sell seminars, products ,scripts and anything else.The term "edge originated with pit traders. The correct use of word in trading is when a local steps in front of bid or offer.Then off setting trade for a profit at the offer or bid. There are pits within the pits and alot to mechanics of pit trading and order filling. But basically thats it. Its horrible the way some exploit lack of knowledge in the retail side of bussiness. Marketting from " traders" " educators" "seminars " "brokers" is very misleading. The "edge" as what it originally eas practiced As well as anything on the screen hasnt been possible for a very long time. Unless anyone know of a market that is very slow and has a big bid/offer spread. One of my pet peeves with those that cant trade so they teach
Befor someone replys Sorry for third reply... When I say teachers I mean "teachers" not traders you share thier experience even for a fee. Current or successfull traders experience is extremely valuable
================ C8T; Some could actually could write a whole book on the subject; Market Makers Edge , by Josh Lukeman is quite helpful, not that its just about market making or daytrading as its named[front cover]. Wisdom is profitable to direct