Your Edge

I have an edge in specific patterns, not the typical type, but a collection of obscure price patterns a kind master trader shared at no charge in exchange for well, becoming his scanning servant plus confidentiality, which I gladly accepted and honored.

Joe

 

Patterns based edges have always intrigued me because I find it very hard to believe that anything other than double tops/ bottoms (because they denote a support or resistance) will have an edge.

Very curious, if you can share following on your system, without giving system away:
1. Are the patterns on intraday data or on daily candles ?
2. how many years it has been working and in which markets ?
3. performance viz. win size:loss size ratio, win %, overall PF ?

Thanks

 

18. My only automated trading system success to date is based on a specific market inefficiency.

Aside from that, I am still fighting with the development/validation of a particular reversal price-pattern (day-)trading system ... 2 main areas of fighting are false positives & undetected instances ... in both case, the primary issue is "correct" identification of pivots points. I would say that solving this will definitively enable 6) identify patterns better than "anyone" else

Being an automated trader, 7) 8) 10) certainly apply

 

1. They work in all time frames, but the higher the time frame the better, not very common though.

2. Very long time, I can personally vouch for at least a century.

3. Confidential

Joe

 

if that's what you are calling and edge, no wonder everybody thinks they have one. I would call most everything on the list just plain old common sense. It would be hard just to breakeven without most of them.

 

Thanks

 

Not necessarily. There are different different degrees for each one.

But I have to go with 20, in addition to being on an incredible team. All independent daytraders, and only half of us have even been to college.
There is no f...ing way I would still be around without them.

 

all right, I'm not going to get into it with you, to me it's just semantics. I kept wondering what this "edge" is everybody talks about. I think of an edge more as running a crap game. But I suppose there's some shooter that thinks he has an edge.

the broker has an edge
the trader has a list of 20 things he calls an edge.

 

I agree.

21. All of the above plus many more, and beyond.

 

Honestly, I've never understood the whole edge argument, so I agree with you.

If you make money you have an edge? If you don't make money you don't have an edge? Ok, fine. But what about the guy who uses math every day and can't describe his edge, but who is very successful. Is math his edge? Perhaps, but his true edge is probably more intangible than most of us would like to admit.

Dustin once said a long term edge is getting a feel for the market through experience. Try to quantify that, much less explain it.