The fear of trading edge becoming inefficient?

Discussion in 'Psychology' started by OddTrader, Mar 5, 2008.

  1. Have you ever had any experience (at any moment at all?) of the fear for worrying your trading edge would become inefficient in the near future?

    What would you do to prepare for it?

    How to overcome it, technically (such as starting a hedge fund) and/or psychologically?

    Or do you think a true edge would never lose its efficiency forever?
     
  2. cold

    cold

    if your edge is based on something specific then YES your edge can be gone, randomized etc

    there is nothing you can do, perhaps you could preempt your edge by 1 min or so, but tough luck

    if you edge is based on something constant then it will last forever

    you must understand you edge first and foremost
     
  3. never go to bat with only one edge. diversity will keep you sane and well rested imo.
     
  4. cold

    cold

    could it be, could it be that I found my equal on this planet

    you are oozing wisdom man :D
     
  5. What are they, preferably with any examples or further elaboration? Thanks.
     
  6. Do you mean diversification with several edges?

    How do you know in advance all the edges could never be high correlated one day, hence becoming inefficient at the same time?
     
  7. Kap

    Kap

    Edges come and go all the time ,, but on the bright side it would get boring otherwise... its just a matter of time before someone catches on ...usually the broker .. :mad: imho

    Kap
     
  8. Good thinking indeed!


    Would that be possible your broker simply adds much more quantity on top of your orders?
     
  9. cold

    cold

    hmm......you must be one of those people who didn't yet learn

    nothing is impossible
     
  10. How about preempt my edge by 1 week? Is that good enough? :D
     
    #10     Mar 5, 2008