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The question of an edge

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Guesser
Reading UK
 
Trading Experience: None
Platform: Custom
Broker/Data: Interactive Brokers
Favorite Futures: My 3 boys
 
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Posts: 1,632 since Oct 2016
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The question of an edge

Dude: I want to try this new strategy on this instrument what do ya-all think?
Trader: Whats your statistical back tested edge?
Dude: .............


How do you reduce something so complex down to a single question like that and expect an answer? Most times it can take an entire journal and we still wont know what a traders edge is.

Can it be reduced down to a mere statistic?
Can it be based any one of the following things?
1. superior money management?
2. Iron clad discipline?
3. Phsychology?
4. Journaling and record keeping?
5. Accomplished technical ability?
6. Profoundly deep understanding of fundamentals?
7. Gigabyes of back tested data?
8. Reams of forward tested data?
9. Thousands of hours of screen time?
I can go on...


You might think that your edge is your ability to execute this one thing repeatedly which your spreadsheet tells you statistically works out in your favour 55% of the time (or whatever). If it is that simple then why cant someone else take your strategy and trade it because we all know that doesnt work?
Your edge is the sum total of everything you have been through on your journey to become a trader. Everything I have listed is important and is an edge in itself. Backtested statistical data is just one piece of it.

What do you think?

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