What is your edge?

Discussion in 'Forex' started by Davidee2, Apr 30, 2011.

  1. forex is a 24 hour market,there is nothing to stop any one from scalping on the bid and offer
     
    #31     May 29, 2011
  2. You're talking about hundreds of a cent. Good luck with that.
     
    #32     May 29, 2011
  3. excellent post. this is spot on
     
    #33     May 29, 2011
  4. you're kinda clueless it seems. Each TF is a fractal of another. Fx gives you leverage to employ any strategy you want on virtually any TF. Instead of arguing I think you should do some research into the subject you're talking about.
     
    #34     May 29, 2011
  5. B, you are wasting bandwidth, most will not listen to what you are saying, doesn't matter how right you are.

    Now I will share my "edge". It is compound so there are different components.

    1. Self discipline
    2. Consistent 54% positive expectancy
    3. 1.4-3.6 % account risk depending on trade
    4. Use of expanded/flexible time frames to mitigate volatility
    5. 3 "types" of trades taken, trend, range and range breakout
    6. Vacation from, 2nd week of May to third week of Sept
    7. At least 1.7:1 R R per trade

    I think that is all I can share right now.

    The Ever Wishing Everyone Good Trading VIPER
     
    #35     May 29, 2011
  6. you guys are arguing about something that has been discussed so many times it pains me to have to read about it again
     
    #36     May 30, 2011
  7. My edge, developing a trade matrix that is universal across all markets, able to detect price perturbations in a manner that can be acted upon quickly.

    Any intrument, any timeframe.
     
    #37     May 30, 2011
  8. Perturbation theory: mathematical methods that give approximate solutions to problems that cannot be solved exactly
     
    #38     May 30, 2011
  9. Nice work ES, I am impressed:)

    In fact, you are the first person to identify that particular word as significant, again, bravo!
     
    #39     May 30, 2011

  10. In my trading experience, losing more than $20,000.00 total over a course of 10+ years, conducting 6+ years of very difficult primary research to develop an unconventional technical analysis approach to the markets; in my opinion, there is not just one edge, but five (5) different edges.

    To me, they are known as:

    Money Management Model
    Timing
    Direction
    Magnitude
    Probability

    Without the ability to execute on these five (5) giants, I would not be able to trade any market.

    However, before one gets there, they have to do some preparatory work by asking themselves: Why trade? What's the point of trading? Can I do something else with my capital and my valuable time, that will yield a higher return, faster, other than trading?

    Then, the individual has to put a price tag on the WHY they are trading. This is one of the first mental steps that most of the 95% who fail, never seem to get around to doing. This is because, most people don't really understand how their brain works. If people truly understood how their brain worked and how they really accomplished anything worthwhile in life, this would easily become their very first step in their trading career.

    I can't tell you what your WHY value should be - nobody can. That value is defined by you and you alone. However, that value is extremely important to everything you do next. Your defined $WHY$ value, dictates everything else to follow - including precisely what type of trader you ultimately become. To underestimate the importance of the WHY question, is to not understand the process of becoming a long-term successful trader.

    Then, you need to develop a Revenue Plan for reaching that value associated with the WHY you are in the business. This is the second biggest mistake that many of the 95% who fail seem to make - they haven't learned the difference between a Revenue Model and a Revenue Strategy, and why having both are critically important to long-term success. The Model is the WHY. The Strategy is the HOW. The rest of your entire Trading System, or Trading Methodology, which produces the Timing, Direction, Magnitude and Probability, should flow directly from this foundation.

    Believe it or not, your Money Management Model, dictates the type and kind of trading indicators/signals/methods you build or develop going forward. It even governs the kind and type of trades you can and cannot execute. Everything you do in this business, begins with defining your $WHY$ and then building your Money Management Model. There is no more important first step to obtaining your "edges."

    I can briefly discuss the rest later, if you are interested in learning.
     
    #40     May 31, 2011