What is an edge?

Discussion in 'Trading' started by Dobbes, Jul 18, 2009.

  1. I don't think being confident is an edge. It may lead to having an edge but it by itself is not an edge.

    For example, I can be very confident that I can beat the heck out of Mike Tyson in a fist fight. But confidence can be just hallucination not reality.

    If your systems/methods can lead to >50% winning over the long haul, then you can be confident of your systems/methods.
     
    #31     Jul 19, 2009
  2. ToKyoGhetto and Detrader9
     
    #32     Jul 19, 2009
  3. Great Post!
     
    #33     Jul 19, 2009
  4. If you are losing/not making money, look into the mirror and ask yourself how you are doing with these 3Ms.

    Thank you Detrader9.
     
    #34     Jul 19, 2009
  5. What is an edge?


    It is STATISTICAL evidence that serves as VALIDATION or CONFIRMATION to REPEAT what is basically the SAME trade AGAIN and AGAIN.

    You ask politely do I have an edge?

    As no one less than Dick Martin said many times, you bet your sweet BIPPY I do.
     
    #35     Jul 19, 2009
  6. Johno

    Johno

    MM style situation

    It can be in an indervidual, although rarely, as generally their behavior/insight can't be replicated.

    Everything else is a competative advantage at best with the caveat that very few people do in fact have this advantage!

    Regards

    Johno
     
    #36     Jul 20, 2009
  7. When a response likes yours barely has a passing relation to the post, it is not really worth addressing.
     
    #37     Jul 20, 2009
  8. Dobbes

    Dobbes

    What a trainwreck. Are some of these even serious responses?
     
    #38     Jul 23, 2009
  9. "The meaning of your communication is the response you get."
     
    #39     Jul 23, 2009
  10. None of these are edges and you don't know what you're talking about. These are generic & basic aspects of trading.

    A true edge is a trick or methodology that has a very favorable risk/reward ratio. Some edges are near risk free, like certain arbs of ECNs or ATS versus the NYSE back before NYSE Hybrid. It simply required thinking ahead outside the box and setting up the proper resources to take advantage of these opportunities.
     
    #40     Jul 23, 2009