Smaller Edges

Discussion in 'Trading' started by esc_trader, May 19, 2003.

  1. I haven't read anything on this topic, but I have observed that when you have an edge, or strategy that is consistently profitable, it seems that the larger the profit expectancy, the less often the opportunity appears. ie opportunities with a profit expectancy of .02 appear more often than ones with expectancy of .50, and the market provides only so many opportunities.

    So what do you have for strategies with very small profit expectancies (less than .02 per share) that can be applied many times during the day.
     
  2. nitro

    nitro

    Trade.

    nitro
     
  3. Nice insight. Seriously, let's get some ideas going here. I know people on this board have more to offer than whining about specialists and MMs and the SEC. I notice the one word post has become very popular here too :)
     
  4. Seems like a scalpers question about what strategies they use?

    NihabaAshi
     
  5. I have a unique scalping set up that works. It is only once per day and the author of this thread has discovered the same thing that I did. So I agree about smaller targets with high winrate setups. Even if the Avg W/L rato is upside down.

    Now if I could listen to Nitro and find this set up more than once a day.......well.... I could celebrate.

    Michael B.
     
  6. DHOHHI

    DHOHHI

    Or ... trade a bit larger when going for those smaller profits. And do it over and over.
     
  7. lescor

    lescor

    Trade more shares
     
  8. Play BOTH types of opportunities.

    peace

    axeman