What's your Edge

Discussion in 'Forex' started by Rapunzel, Jan 29, 2022.

  1. Rapunzel

    Rapunzel

    Hi Folks, I hope you are all well and good.

    I was just curious to ask; if you would willing to share the percentage edge you currently work with on your best strategy. Just so people can have a rough idea of what a reasonable edge looks like.
     
  2. traider

    traider

    Best edge is 30% to 100%
    Discretionary edge varies depending on how many stupid mistakes made.
     
  3. themickey

    themickey

    Edge will go up and down like a whore's drawers.
     
    jys78, Clark Bruno, Bobbybax and 2 others like this.
  4. danielc1

    danielc1

    The edge I have is that my losses are smaller then my winners. Like 5r wins or more, with outliers of 20r to 50r.
     
  5. Rapunzel

    Rapunzel

    I should have added one too :), keep on posting!!

    On a breakout with R:R 1 (TP) :2 (SL) , I would need to win at least 66.67% of my trades to break even. Win rates are currently in the range 80 ~ 85% so my edge would be

    85% - 66.67% = 18.33% Edge.

    Example Calculation

    If I enter 200 trades a year and risk £10,000 to make £5,000 on each trade, the run rate return should be:

    [5,000 * (200 * 0.85)] - [10,000*(200*0.15)] = 850,000 - 300,000 = 550,000

    Assuming 10,000 is 2.5% of my account balance (400,000), then the annual growth should be 550,000/400,000 = 1.375 assuming no withdrawals.

    edit: 950,000/400,000 = 2.375
     
    Last edited: Jan 30, 2022
  6. Every trader does that calculation lol.
     
  7. Rapunzel

    Rapunzel

    Sharing is caring, let's see yours.
     
  8. My breakeven if 50% and my win rate is 85% so you can do the math.
     
  9. Rapunzel

    Rapunzel

    That's a big edge. What do you do, what's the signal count.
     
  10. Most of the edge came from trading better, not the signal.
     
    #10     Jan 30, 2022
    Rapunzel likes this.