The question of an edge | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


The question of an edge

  #15 (permalink)

Winnipeg, MB Canada
Trading Experience: Intermediate
Platform: Sierra Chart
Broker/Data: Oanda
Favorite Futures: EURUSD (spot forex)
MWG86's Avatar
Posts: 490 since Jul 2015
Thanks: 846 given, 623 received


Interesting conversation, thanks for starting it @Grantx.

I agree with @kevinkdog’s statement that expectancy is edge and @TheShrike's comment that the things listed in the OP are prerequisites and not "edge" but I understand the difficulty in quantifying it for a discretionary trader. It’s not as simple as saying that ‘I go long when the 20 EMA crosses above the 50 EMA and this has a hit rate of X% and positive expectancy of 0.X% over a series of 1,000 trades.’

Part of the problem for someone who identifies as a discretionary trader is to distill their “edge” into a single sentence or statement. I personally feel that if someone has proven to be consistently profitable (with a positive expectancy) over a large sample size of both trades and time then their discretion itself is their edge. This large sample size is essential because it has to entail numerous distinct market conditions as @ratfink alluded to. Good luck trying to summarize this into a single sentence or paragraph though.

I’ve seen many times the question be posed to someone on the site “what is your edge?” I feel it’s a catch 22 just like when someone applies for their first job. It’s tough to get a job without experience but you need a job to get experience. The same applies to a discretionary edge. You can’t be consistently profitable without an edge but you can’t prove edge without being consistently profitable.

I think if you posed the same question to a consistently profitable discretionary trader either past or present on this site to distill their “edge” into a single sentence, keeping it PG, they might quote Boris Johnson and tell you to “go whistle.”

Last edited by MWG86; July 14th, 2017 at 07:44 PM. Reason: missed the k in kevinKdog
Visit my futures io Trade Journal Reply With Quote
The following 5 users say Thank You to MWG86 for this post: