Do you need a real edge trading the Bond market?

Discussion in 'Financial Futures' started by Ronjohn, Mar 10, 2017.

  1. sle

    sle

    There are plenty of finance-related lore that you would not be able to find on line. In all honesty, I did not bother looking cause, as I said, it's common knowledge in the industry
     
    #31     Mar 12, 2017
  2. comagnum

    comagnum

    Using edges plural is well within reach of any trader that works on it. I have half a dozen edges - it's not rocket science. Being under capitalized, taking on to much size in proportion to your capital, and not having a solid risk mgmt strategy is the opposite of an edge - it the road to ruin.
     
    #32     Mar 12, 2017
  3. lovethetrade

    lovethetrade Guest

    That's fair enough but to be honest I couldn't two hoots about industry "lore", based on my many years of education and industry experience, an edge is any competitive advantage that allows you to derive consistent profits.

    If a poker player consistently cleans up the house and sends them bankrupt, he has an edge. If Soros consistently cleans up the market with subjective decision-making, he has an edge on the market, if a trader consistently cleans up trading his own account, he has an edge, if an institution invests heavily in obtaining a structural edge, as you put it, and consistently derives profits from it, it has an edge also.
     
    #33     Mar 12, 2017
  4. sle

    sle

    I guess we can agree to disagree on the terms. What's important is that there is a big difference between skill that can be acquired by anyone and a structural advantage that takes a prohibitive investment to build. That distinction is what determines the longevity of your alpha.
     
    #34     Mar 12, 2017
    dunleggin, Tim Smith and dealmaker like this.
  5. lovethetrade

    lovethetrade Guest

    Your definition of an edge is actually a "structural edge" which I have no problem with. It doesn't mean the short name you adopt makes your definition applicable to every other type of advantage an individual or firm may possess.

    Yes, I think we need to agree to disagree.
     
    #35     Mar 12, 2017
  6. lovethetrade

    lovethetrade Guest

    @Tim Smith Where is your response to this? I was looking forward to one of your generic "the industry that employs me is so much smarter than you" type of responses.
     
    #36     Mar 13, 2017
  7. Tim Smith

    Tim Smith

    @lovethetrade

    How about I add you to my blocklist instead. Then I don't need to read any of your nonsense.

    Believe what you like about your magical ability to take stupid amounts of risk, one day, sooner rather than later, the markets will teach you a lesson you'll remember for the rest of your life.
     
    #37     Mar 13, 2017