EDGE

What does it mean to have an edge?
an advantage
If someone or something has an edge, they have an advantage that makes them stronger or more likely to be successful than another thing or person.


Edge is mentioned a lot but rarely is it discussed or defined.

Can you write down your edge exactly where someone else could copy it?

Are you just getting lucky and calling it edge?

Edge is it really just your strengths vs your weaknesses

How do you define edge?

How is your edge proven that it's an edge?

How many trades does it take to prove you have edge?
Does your EDGE maintain itself even when you do more size?
Is Edge just a highly probable set up you made?
Is Edge just being disciplined to a trading plan?

What is edge to you and how would you define it? I feel like many traders do a couple
Trades a day and think that if they win they have edge but it could be a short term lucky streak

This is an open thread to pose your thoughts and ideas about your edge and why your edge can be considered edge. This is not a thread to show your edge, but more the hows or whys your edge works.

Hopefully we can all learn and question our own edges from some input from the community.

I think true edge is a matter of consistency in profits in cutting losses and in the ability to ensure you don't go blowing your account in a few days of bad trading.

I think proven edge must include thousands of trades with daily weekly monthly yearly profits. Edge must be proven over and over to where you may start to realize that your edge is no longer working because too many others are working on the same edge.

My edge is that I can consistently make money over tens of thousands of trades more than 50,000 lots traded similarly, but I'm lying to myself because not every lot is traded the same way. There is discretion involved at times and my gut is good at making money. However, my gut also costs me thousands in losses when I don't take losses following my trading plan.

For me edge is being able to see and take trades that consistently make money but if you just give back those winnings and maybe more then your edge my edge isn't really edge at all...is it?

I am not sure any of what I just said made sense.

Looking forward to your ideas and thoughts on EDGE

Edge = being able to see something in the market in time to be able to exploit it.

If you can't define your edge then you don't have one.

HiLatencyTRDR HLT 

EDGE What does it mean to have an edge? an advantage If someone or something has an edge, they have an advantage that makes them stronger or more likely to be successful than another thing or person. Edge is mentioned a lot but rarely is it discussed or defined. Can you write down your edge exactly where someone else could copy it? Are you just getting lucky and calling it edge? Edge is it really just your strengths vs your weaknesses How do you define edge? How is your edge proven that it's an edge? How many trades does it take to prove you have edge? Does your EDGE maintain itself even when you do more size? Is Edge just a highly probable set up you made? Is Edge just being disciplined to a trading plan? What is edge to you and how would you define it? I feel like many traders do a couple Trades a day and think that if they win they have edge but it could be a short term lucky streak This is an open thread to pose your thoughts and ideas about your edge and why your edge can be considered edge. This is not a thread to show your edge, but more the hows or whys your edge works. Hopefully we can all learn and question our own edges from some input from the community.

My definition of an edge is a set of trading rules that has consistently made money over time. The rules and the timeframe depends what rules each trader needs to be sure that there is an edge and what consistently profitable timeframe they are comfortable with. Some rules might be specific, other rules might be general, and some might be a combination of both, depending on the trader.

For example… I believe that my edge consists of 4 parts
Specific… my automated trade management methodology
Specific… the relationship that I have of initial stoploss versus trends and associated probabilities
Part specific and part general… knowing the trade direction, stop size, setup patterns, and entry location
General… my ability to read context of the futures market, future group, times, news, etc.

The edge/ rules that I use have been developed and tested over the last 16 years and with 10+ years of consistent profits.

Excellent replies and ideas on edge. These posts really start to dig in and define edge

I actually feel edge for discretionary retail traders is a illusion .. I think the opportunity to find out an outcome is a better mental state.
Facts of retail:
1. Tech is slower
2. Data is slower
3. Fills are worse
4. Failure rate is high

So edge for retail I think should just be looked at as opportunity, we get to participate in trends in ranges

Sent using the NexusFi mobile app

HiLatencyTRDR HLT 

I think true edge is a matter of consistency in profits in cutting losses and in the ability to ensure you don't go blowing your account in a few days of bad trading. I think proven edge must include thousands of trades with daily weekly monthly yearly profits. Edge must be proven over and over to where you may start to realize that your edge is no longer working because too many others are working on the same edge. My edge is that I can consistently make money over tens of thousands of trades more than 50,000 lots traded similarly, but I'm lying to myself because not every lot is traded the same way. There is discretion involved at times and my gut is good at making money. However, my gut also costs me thousands in losses when I don't take losses following my trading plan. For me edge is being able to see and take trades that consistently make money but if you just give back those winnings and maybe more then your edge my edge isn't really edge at all...is it? I am not sure any of what I just said made sense. Looking forward to your ideas and thoughts on EDGE

KOTN 

I actually feel edge for discretionary retail traders is a illusion .. I think the opportunity to find out an outcome is a better mental state. Facts of retail: 1. Tech is slower 2. Data is slower 3. Fills are worse 4. Failure rate is high So edge for retail I think should just be looked at as opportunity, we get to participate in trends in ranges Sent using the NexusFi mobile app

I developed my edge as a manual/discretionary trader. Then made it better by automating parts, then using offline computer resources for other parts while leaving some parts manual because I was better at chart reading.

Edge for me is when I go long on the bid, and the offer goes bid... effectively its my ability to find spots where I get long at the bid and it ticks up right after I get filled. Vice-a-versa for shorts.

This is a result of my skill of reading order flow. As I grow my skill, my ability to GET the edge in any trade increases.

So I don't think of it as HAVING an edge...it's like trying to catch a fish with your bear hands...every attempt can scare fish away...so you wait for the fish to be in just the right spot, and then you strike... once you catch it, it also takes skill to hold on...

Learn to fish, and you will eat for all your days...

HiLatencyTRDR HLT 

EDGE What does it mean to have an edge? an advantage If someone or something has an edge, they have an advantage that makes them stronger or more likely to be successful than another thing or person. Edge is mentioned a lot but rarely is it discussed or defined. Can you write down your edge exactly where someone else could copy it? Are you just getting lucky and calling it edge? Edge is it really just your strengths vs your weaknesses How do you define edge? How is your edge proven that it's an edge? How many trades does it take to prove you have edge? Does your EDGE maintain itself even when you do more size? Is Edge just a highly probable set up you made? Is Edge just being disciplined to a trading plan? What is edge to you and how would you define it? I feel like many traders do a couple Trades a day and think that if they win they have edge but it could be a short term lucky streak This is an open thread to pose your thoughts and ideas about your edge and why your edge can be considered edge. This is not a thread to show your edge, but more the hows or whys your edge works. Hopefully we can all learn and question our own edges from some input from the community.

The markets are constantly changing. Different traders. Different news. Different times of day. Different fundamentals.

To me, the most important thing about Edge is to be constantly analyzing and changing to adapt to current conditions. Most traders look for just the opposite - something static that always works.

tradingftw 

Edge for me is when I go long on the bid, and the offer goes bid... effectively its my ability to find spots where I get long at the bid and it ticks up right after I get filled. Vice-a-versa for shorts. This is a result of my skill of reading order flow. As I grow my skill, my ability to GET the edge in any trade increases. So I don't think of it as HAVING an edge...it's like trying to catch a fish with your bear hands...every attempt can scare fish away...so you wait for the fish to be in just the right spot, and then you strike... once you catch it, it also takes skill to hold on... Learn to fish, and you will eat for all your days...

I like your analogy!!