How does a edge disappear?

Discussion in 'Trading' started by OneQuickNut, Aug 18, 2024.

  1. taowave

    taowave

    If it never dissapears,its most likely not a true edge..

    And Prudent Risk Management is not an edge,it's a requirement...



     
    #21     Aug 18, 2024
    zghorner and newwurldmn like this.
  2. Buy1Sell2

    Buy1Sell2

    It's the only true edge.
     
    #22     Aug 18, 2024
  3. taowave

    taowave

    I feel for you



     
    #23     Aug 18, 2024
    cesfx and trismes like this.
  4. maxinger

    maxinger

    upload_2024-8-19_10-34-37.jpeg

    Perhaps there is no edge in the first place.
     
    #24     Aug 18, 2024
  5. Coin Flip

    Coin Flip

    I was going to answer your question, but honestly your user name is just so ridiculous that I can't be bothered.

    I just can't see any patient disciplined trader ever choosing that user name.
     
    #25     Aug 18, 2024
    MarkBrown likes this.
  6. Steve777

    Steve777

    Grab some sandpaper and start rubbing on it
     
    #26     Aug 18, 2024
    beginner66 likes this.
  7. TrAndy2022

    TrAndy2022

    All fine systematic edges, I found within my 15 years testing and develeoping, with Sharpe >3 did disappear within 1 year. Not long enough to get rich from starting small. They were 100% systematic. So I guess all kind of fully systematic edges have a short lifetime span.

    If you want to have longterm consistency trade discretionary as much as you can, because then it is too hard to replicate it and thus your edge should last much longer. But of course you need to adapt over time within your discretionary framework. There is a study I can attach as proof where a good discretionary trader is even turning a non-profitable systematic strategy into Sharpe 2 result, when traded this strat on his own discretionary. That is the way to go, to keep your edge as long as possible alive.
     
    Last edited: Aug 19, 2024
    #27     Aug 19, 2024
    zghorner and beginner66 like this.
  8. maxinger

    maxinger

    [​IMG]

    Use the grinding wheel, and the sharp edge will come back again.
     
    #28     Aug 19, 2024
    beginner66 likes this.
  9. Sergio123

    Sergio123

    There are ways to gain edge but they arent available for most retail traders to exploit.

    I saw a video on here that explained how a hedge fund sent in 2 opposite orders to the exchange with missing TCP/IP header information prior to that particular news event - which essentially reserved the orders spot in the queue but did not get filled due to missing information. But then as soon as the news event hit, the order that was desired to go through was corrected at the network packet level while the opposite order was either left incomplete or cancelled.
     
    #29     Aug 19, 2024
  10. SunTrader

    SunTrader

    IMO edges don't disappear, they ebb and flow. Those who play it right, know when to push it and when to back off.
     
    #30     Aug 19, 2024