Adding to this, it is not half-arsed edges or systems that produce a consistent margin. It means backing a certainty. Its means taking a gigantic shoveful out, at will, every day. You know what to do and how to do it each day. Like I say, only the very few, the one or two, are there.
My definition of holy grail: a small statistical advantage that can be traded many time, such as on all stocks, for instance. They key is consistency and the ability to exploit the edge numerous times.
I'd like to add, money management and trade control. If not components of the HG then they are at least keys to good trading.
In a word........ Discipline. Having the discipline it takes to keep after your trading education after putting in long hours to study, prepare, test, analyze and review the rules, software, trading vehicles and systems before ever placing your first trade. Having the discipline to start with small sizes as you continue to learn and trade. Having the discipline required to wait to trade real money with maximum leverage until you achieve proper capitalization for your trading goals. Having the discipline required to remain patient while waiting for the most opportune time before entering a trade. Having the discipline to exit a trade and take a loss when the market tells you you were wrong this time. Having the discipline to exit a trade when you reached your target by not permitting greed to influence your decision. Having the discipline required to control your emotions before, during and after a trade. Having the discipline to follow your well tested and proven trading system rather than override it simply because "you know better." It's rather easy to find the Holy Grail. Maintaining it is quite another thing. I know I fight the battle each and every day. Good Trading to you all. - Spydertrader
spydertrader, Very excellent......no secrets revealed there, just exactly what it takes to succeed and guess what? 90 % can't do it....you have given the rules for success and ego pumping will keep traders from doing just what you handed them....success is simple....u nailed it on the head....you could give the HG and no one would listen because their "I'm smarter than this guy" ego gets in the way, or greed, or fear, or lack of discipline.....or commitment...or confidence....or....or....or... thanks a lot for spelling out the real facts.....it took me years to understand discipline....we must have confidence in a proven system and discipline to trade it....simple....
HG would be something that would work in most markets in diff time frames. Something you could program the rules and have an automated system. This would take out the emotions out. Ideally you could you multiple $ mgmt rules on multiple positions to smooth out the equity curve on a month to month basis. If it works on stocks, forex & futures you really have something good. At the end of the day you just see how much $ you made....
I prefer to exit a trade by tightening the stop when I see the entry/exit signals forming. Trading point targets will cause much unhappiness. U will see many trend days that u should have trailed the stop ....very cautiously....but a good system should have entry/exit signals that are the same...it sounds good to have a point target, but most won't like 20% or 50% out of a run....eventually......a good system that enters/exits near the reversal points is best....not scalping a few points.short time frame charts lead to shorter and riskier trades... although I will never knock making money in this business....