What kind of Edge you have?

Discussion in 'Trading' started by carrer, Aug 7, 2015.

What kind of Edge you have?

  1. Complex algorithm (possibly a combination)

    19.4%
  2. Candle by candle statistics

    1.5%
  3. Price actions

    55.2%
  4. Patterns

    34.3%
  5. Mathematical equations

    16.4%
  6. Statistics based on indicators

    20.9%
Multiple votes are allowed.
  1. d08

    d08

    And? Who cares about stats like that when all that matters really is how much you make and how much risk you take to make it. Consistency comes second but is also important. Your 100% win rate is quite insignificant.
     
    #101     Aug 14, 2015
    lawrence-lugar likes this.
  2. Don't be silly
     
    #102     Aug 15, 2015
  3. Here's an edge for you: http://www.zerohedge.com/news/2015-...d-markets-grey-area-between-cheating-and-edge

    Of course traders detected such HFT stuff years ago, wrote about it on ZH and the HFT lobby came on TV and denied it on the air. Where are the TV stations defending HFT now?

    Will there be a future class action lawsuit of all investors against HFT firms, TV stations talking heads, and exchanges. Sadly that will have to wait until the lawyers going after Ashly Madison's clients have some time freed up. How can any person defend NBBO (the law) after this kind of story? I am still waiting for the answer, is the only day that HFT lost money the same day the flash crash happened?
     
    #103     Aug 20, 2015
  4. Humpy

    Humpy

    Sharp edges get blunt easily so if you are lucky enough to have an edge don't go around blabbing it out to everyone.
    ;)
     
    #104     Aug 21, 2015
  5. you are so very wise indeed. sending you a personal mssg.
     
    Last edited: Sep 14, 2015
    #105     Sep 14, 2015
    lawrence-lugar likes this.
  6. Humpy

    Humpy

    Got it - thanks
     
    #106     Sep 16, 2015
  7. patterns for me
     
    #107     Sep 21, 2015
  8. Mr.Wahdy

    Mr.Wahdy

    Good question. My firms edge comes from modeling scenarios across price. For example, what impact might there be on AAPL if the USD drops 20 bips? We try to make our models as sophisticated as possible without forgetting credo that it is better to be generally right than to be specifically wrong.

    Many times there's information embedded in a company's 10K/10Q/SEC filing that will clue us into what can happen to price. For example, if a company is sitting on $5B of cash but has $3B of bonds maturing in 1 year, we can adjust the statement to value the company based upon the sum of additional cash flows between now and the payment less the payment. With a price range defined, we then model in events--for example, small dips with 1-3% fluctuations in the daily price of the S&P 500 or of individual company stock.

    Trading markets is like playing chess. Rookies play the piece in front of them, but pros build out strategies to win the game.
     
    #108     Sep 21, 2015
    carrer likes this.
  9. Price patterns like Head+Shoulders etc?
     
    #109     Sep 25, 2015
  10. Visaria

    Visaria

    An easy 'edge' over other traders is the ability to recognize whether the market is in a bull or bear trend. Can be done visually i.e. no need for fancy indicators.

    To this day, i recall some trader on this forum insisting that we were in a bear market despite the fact the market was hitting record new highs every day!
     
    #110     Nov 20, 2015
    Jakobsberg likes this.