What do you do to get your edge?

Discussion in 'Trading' started by SoyUnGanador, Jan 31, 2022.

  1. I work a bare piece of metal back and forth on a grinding wheel. Eventually I find an edge
     
    #71     Feb 5, 2022
  2. Sekiyo

    Sekiyo

    Everywhere is for the layman.

    You might find a copy of “KELLY CAPITAL GROWTH INVESTMENT CRITERION” on b-ok.org
     
    #72     Feb 5, 2022
  3. themickey

    themickey

    I'm starting a new thread shortly, it's will be an educational thread on penny stock trading.
    This will be a very rare thread from me where I lay out specifically how to trade stocks (penny stocks in this instance) and it will be one where I will clearly show some trading edges.
    Baron has given permission, we are currently discussing.
     
    Last edited: Feb 5, 2022
    #73     Feb 5, 2022
    beginner66 and Laissez Faire like this.
  4. This got an upvote. Why not conidtion on E(X|X>1%)p(X>1%)
     
    #74     Feb 5, 2022
  5. virtusa

    virtusa

    Very good post. They are rare on ET.
    I realize now that I do these things too in one way or another. But I am not a statistical expert.
    I watch the evolution of my trades in detail and check for:
    • Good entries. My experience is that a good entry is vital for good performance. I only enter after a confirmation of the trend. I noticed that after that confirmation you are from start almost in profit with only small open losses, due to the volatility. This leads to closer stops, which leads to the potential of increasing the leverage. That makes much more money then trying to catch the bottom or top with large stops and logically much lower leverage and most of the time bigger open losses.
    • P&L of each trade. And mostly the behavior/evolution of the LOSS side of the open P&L. Open loss should be small and have a short duration.
    • Distribution. Should be assymetric. The more to the right (in profit zone) the better. The lower the lines is in loss zone the better. The more the top goes to the right the better as that means that my average profit per trade becomes bigger (so not the majority of trades with small profits).
    • Expectancy.

    This is the distribution I dream of. :D
    The-maximally-asymmetric-stable-Cauchy-distribution-It-is-principal-ancestor-of-the-1.jpg
     
    Last edited: Feb 6, 2022
    #75     Feb 6, 2022
    beginner66 likes this.
  6. virtusa

    virtusa

    Why not?
    Because I have only very limited (basic) knowledge of math. My trading is based mostly on logical thinking. :D
     
    #76     Feb 6, 2022
  7. I heard that if you are daytrading you put your curser where you want the price to move to then curse if it does not do it.
     
    #77     Feb 6, 2022
  8. virtusa

    virtusa

    From "hearing say" you hear a lot of lies.
    You are confused and mix things up. You speak about cryptos.

    To make your post correct for daytraders you should just move the word "not" on the right place:
    "I heard that if you are daytrading you put your curser where you want the price not to move to then curse if it does do it."

    And a curser is no a cursor. :D Use Google translate.
     
    Last edited: Feb 6, 2022
    #78     Feb 6, 2022
  9. I think your bad joke is worse than my bad joke
     
    #79     Feb 7, 2022
  10. No edge here

    GAT
     
    #80     Feb 9, 2022
    comagnum likes this.