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The question of an edge

  #28 (permalink)

Legendary Market Wizard
Houston, TX
 
Trading Experience: Advanced
Platform: XTrader
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rleplae View Post
Interesting to see, at the same time

1) how 'hot' this topic is
2) how difficult it is to 'articulate' what is the edge...

I think this is exactly what separates retail from professional world...
it would be worth a seminar and for sure more than a few hours can
be filled on this topic...

I agree. Well said.
Part of the issue is that edge and expectancy mean different things to different people, and in many cases aren't transferable.
To HFT it might be speed.
To Kevin it may be systems with high expectancy.
To a market maker or a prop customer desk it could be flow.
To somebody else it may be knowledge or information.
To yet somebody else fundamental analysis.
The list is endless.
The bottom line though is that unless you have a reason to believe you will make money, why would you do it?
That reason whatever it is, is your edge, however you define it.
Expanding on what somebody said earlier, if you dont know what your edge is, chances are you don't have one, which probably means you won't be trading long - at least not profitably.

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