Discussion in 'Trading' started by sabena, May 4, 2003.
sabena.....try "unfair advantage" to literally define edge.
Would a Globex terminal be a hardware edge?
I have about A% confidence to win B% trades in order to achieve a C% growth of capital employed, before D% of employed capital is disappeared by an E period of time.
ProfitFactor=(%Wins*AvgWin) / (%Losses*AvgLoss)
It should also incorporate commissions.
If PF>1, technically you have an edge. The bigger it is, the bigger your edge and the smoother your equity curve will be. For example PF of 2 will always give you an equity curve to kill for.
The edge is a combination of those things you have identified and those you haven't yet identified, working together to produce a living out of this wonderful game...
ability of any kind is an edge, is it not?
it's another beautiful thing about free enterprise -- you can find your fit.
markets are awesome....
Yup, they sure are
Edge is the word for Prop firm owner who try to persuade people to deposit 25k into their firm. Statistically, minimum 10k goes to Prop firm owner's pocket (commissions before they quit) no matter what the market does...
That is the real edge!
Profit factor "AKA" P/L ratio 2.49:1
Win Rate 93.02%
Avg W/L Ratio 0.1869:1 (avg win 1.03) (avg loss -5.50)
What would your comments be to these above stats?
More locals or M/M's have run several thou into several mil than all other market participants combined. However, that being said I do believe there is a soft edge available on the screen.
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