The Meaning of A Trading Edge

Discussion in 'Trading' started by tradingjournals, Aug 10, 2010.

  1. Spot on !

    Pity I had to read hundreds of useless posts before getting a summary.

    Anybody else summarize it?

    It does not matter what spread you pay , it is whether you can make money CONSISTENTLY after paying the spread.
     
    #41     May 11, 2012
  2. A trader's edge is not so simple to understand.

    The edge is the total combination of strategy,mindset, risk management ,execution , trading plan, experience ,quality screen time intuition , ability to read context , probabilities , instrument knowledge and a trader personality suited to trading.

    It is much more than a casino edge. Psychology is more important in a trader's edge and makes up 80 % of a trader's edge.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=236978
    Mark Douglas "An Edge is nothing more than an indication of a higher probability of one thing happening over another".

    The casino edge

    http://www.traderslaboratory.com/fo...y/4348-trading-edge-definition.html#post45836

    Casinos don't have to deal with issues of mindset ,emotions and psychology.

    http://www.elitetrader.com/vb/showthread.php?threadid=236978

    Reading price action and trading with the flow can give a edge

    http://www.elitetrader.com/vb/showthread.php?threadid=235274

    Finally another post to note.

    http://208.234.169.12/vb/showthread.php?threadid=219739&perpage=6&pagenumber=5

    The edge includes acceptance of the facts and preparation that , when 80 % of trends fail , trader will react to protect the edge.Also knowledge that trader is betting/gambling on unknown outcome.Trader must understand trend trading is paying higher prices for the instrument .
     
    #42     May 11, 2012
  3. Two year old thread.
     
    #43     May 11, 2012
  4. Does being a vendor give you an edge?
     
    #44     May 11, 2012
  5. Only if your block allocations to subscribers are properly charged according to the size of their allocations so that there's no free riding.

    C2's compensation practices are unfair and nobody makes money there.

    WorldCupAdvisor.com's technology gives an average price fill guaranteed by the broker no matter how large the order is, so unlike C2 if someone's doing 20 units, you don't just make $250, but 20*$250 and that particular groups technologies claim to have no slippage.

    Not only do I offer signals, I take multiple units besides that, but the guarantee against slippage no matter the size is something only that website can do.

    If your strategies are really an edge, it doesn't matter how much money's behind you. Go Tom Baldwin on them!

    The dreams I've had regarding what this looks like are basically moving the market +/-2 ticks in both directions.
     
    #45     May 11, 2012
  6. Making a spread around fair value, then passively waiting for someone else to actively pay above, or receive below.
     
    #46     May 11, 2012
  7. Macho

    Macho

    :D
     
    #47     May 11, 2012
  8. Evidently, back testing does - especially if done with genetic optimization.

    :D
     
    #48     May 12, 2012

  9. Buying a trend trading course from a vendor can give you an edge?

    We're you back testing anything else besides the system?
     
    #49     May 12, 2012
  10. If someone is willing to share code with you to do backtests, that's what you need. If they won't share it, then the only other way to believe what somebody says is by checking their transactions with their broker.

    Multi-demensional solutions via genetic optimization are indeed the greatest weapon to use in analysis. Knowing your strategies are consistent is helpful when confirming robust models.
     
    #50     May 12, 2012