What defines an "Edge".

Discussion in 'Trading' started by redbaron1981, Mar 29, 2015.

  1. SunTrader

    SunTrader

    Highly subjective yet you believe you know what others would be happy with? o_O

    Anyway I was thinking generally what you consider fairly consistent returns, not yours in particular.
     
    #131     Nov 29, 2016
  2. Humpy

    Humpy

    I doubt if anyone who has a real edge would be foolish enough to tell the world because the more people that use it the more watered down it will be until it is useless.
     
    #132     Nov 30, 2016
  3. JSSPMK

    JSSPMK

    This thread is funny, I'll attempt to make it slightly more comical.

    Isn't it better to know how to wipe your ass properly after a dump rather than ask what does it feel like to go to the toilet and come out with a clean butt every time?
     
    #133     Nov 30, 2016
    Trader200K and Mtrader like this.
  4. Buy1Sell2

    Buy1Sell2

    I enter at areas where I can place a close stop outside the noise. It's part of PRM
     
    #134     Nov 30, 2016
    algofy likes this.
  5. Buy1Sell2

    Buy1Sell2

    A trader using random entries, cutting losses short and letting winners run will be vastly more successful than a trader priding themselves on being right.
     
    #135     Nov 30, 2016
  6. the bid-ask spread is the 'edge', when you can buy at the bid and sell at the offer... you can extrapolate out the 'bid-ask' to larger timeframes... ie .. ATR or peripheral of market profiles.. so all those algo's that try to market make at high frequency at 1 tick spreads.. can be switched to higher timeframes.

    the key with this is only 'offer' or 'bid' according to which ever trend filter you use for entry's.
     
    #136     Nov 30, 2016
  7. algofy

    algofy

    I don't disagree. What about a trader that understands probability and applies an entry methodology that is more likely than not to succeed over a series of trades AND also applies PRM??? Wouldn't that person have an edge or just a random entry trader with PRM?
     
    #137     Nov 30, 2016
  8. algofy

    algofy

    What? I don't understand. How you move a bid offer spread to a higher timeframe?
     
    #138     Nov 30, 2016
  9. most of the pit traders would constantly quote the market based on mental idea of intraday trend. They would only offer if the trend was down or bid if the trend is up. If they get filled they immediately try to offload quoting the current bid/offer. Sometimes both sides will get hit within seconds. Meaning he will make 1 tic spread on size. Some will wait for a test of the daily high or low before willing to enter the market based on their perception of the intermediate term trend or daily trend. You can view the daily high as the offer and the daily low as the bid. Or weekly...monthly.. If your on the correct side of trend, your entry will only entertain minor amount of 'heat'.. especially in fast volatile unidirectional markets.
     
    #139     Nov 30, 2016
  10. trdes

    trdes


    That's pretty interesting don't have any first hand knowledge of this, or never really thought about it, but makes a lot of sense.
     
    #140     Nov 30, 2016