Trading with an edge - what does it mean to you ? - futures io
futures io futures trading



Trading with an edge - what does it mean to you ?


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one trendisyourfriend with 9 posts (6 thanks)
    2. looks_two Big Mike with 3 posts (8 thanks)
    3. looks_3 itrade2win with 3 posts (1 thanks)
    4. looks_4 Linds with 2 posts (10 thanks)
      Best Posters
    1. looks_one Warren B. with 6.0 thanks per post
    2. looks_two Linds with 5.0 thanks per post
    3. looks_3 Big Mike with 2.7 thanks per post
    4. looks_4 trendisyourfriend with 0.7 thanks per post
    1. trending_up 6,196 views
    2. thumb_up 35 thanks given
    3. group 6 followers
    1. forum 23 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Trading with an edge - what does it mean to you ?

(login for full post details)
  #1 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received

Theoretically , having an edge should translate in winning more than losing.

We often hear that trading is 95% psychological and 5% technical. What do you think ? If that would be the case then how come is it so difficult to develop a *winning* mechanical system? After all, a computer is not influenced by emotions. If a computer can psychologically feel 100% up to snuff all of the time then why a cross over of two moving averages is not enough to win over the long term ?

Certainly, to win the game there is more than psychology, there must be other component we need to consider ? I have the feeling that these other components are more physical and technical than anything else. And we often hear that trading is mostly phychological... What a paradoxical theme!

Reply With Quote

 
Best Threads (Most Thanked)
in the last 7 days on futures io
The Small Exchange (www.smallexchange.com)
106 thanks
Big Mike in Ecuador
86 thanks
How did you learn to trade?
56 thanks
Whos afraid of the big bad Glitch
51 thanks
Spoo-nalysis ES e-mini futures S&P 500
44 thanks
 
(login for full post details)
  #3 (permalink)
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: My own custom solution
Trading: Emini Futures
 
Big Mike's Avatar
 
Posts: 49,398 since Jun 2009
Thanks: 32,062 given, 96,675 received


To me, I define my edge primarily by things other than an entry signal. It seems that majority of people tend to define their edge as a signal, and here I am defining it by pretty much everything but.

My edge is based on:
  • Experience reading price action
  • Discipline
  • Outside influences / life stuff is beneficial not detrimental

Naturally there is more, but I think in general if you repeat the first two about 90 times you'll have the basis for what is needed to be successful. Sure, you need position sizing, money management, etc. Absolutely. And I also want to say that entries really don't mean much, yet everyone puts all their focus on entries. Exits are what matters But truly, I think that the experience to know when to trade, when not to trade, and then the discipline to be slow and steady, consistent, and not fly off the handle or go on tilt because of a bad trade or day, those are what determine your edge in the market.

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/
Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal Reply With Quote
The following 5 users say Thank You to Big Mike for this post:
 
(login for full post details)
  #4 (permalink)
Victoria, Australia
 
Experience: Intermediate
Platform: NT, MT4
Broker: NT
Trading: Bund , ASX 200
 
Linds's Avatar
 
Posts: 409 since Jul 2010
Thanks: 879 given, 514 received

After a few thousand hours of screen time, reading, live trade rooms and online forums I ve come to see the 'edge' as a simple enough concept. To prove an edge you need to be able to perform a statistically significant number of consequtive trades according to a defined methodology and have a significantly profitable result. Simple enough concept but harder to achieve. 'Trading with an edge' is only possible if:
  1. you have a solid and complete methodology.
  2. you have the technical expertise to implement it reliably
  3. you have faith in each setup
  4. you can objectively tell the difference between 'a mistake' and a 'valid losing trade' [ to avoid the trap of retrospectively classifying losers as mistakes]
  5. you have a sufficiently funded account so that you are able to place stops where the market ( and not your account) dictates.. And each trade risk is less than 3% of account ( preferably 1 to 2).
  6. you understand the probabilities of the method [so that you dont change methods everytime a drawdown occurs]
points 3 to 6 are all about being able to cope psycholgically with trading the method.

So my view is that it is interdependent and about 50/50 - you cant trade with an edge without the method and the technical abilty, nor can you trade with an edge without good money management and psychological mindset.

To tick the 6 boxes takes a lot of time - 10000 hours is a figure thrown around. I thought I could do it faster than that when I started out - still hopeful of that but been humbled a few times now so we'll see.

Visit my futures io Trade Journal Reply With Quote
The following 10 users say Thank You to Linds for this post:
 
(login for full post details)
  #5 (permalink)
BERLIN - Germany
 
Experience: Advanced
Platform: Sierra, Esignal, (NT)
Trading: FDAX, 6E , Stocks/ETFs
 
Posts: 48 since Nov 2009
Thanks: 45 given, 45 received

Hi,

I totally agree with the most what has written before.

For me my edge is based on:

1. Experience reading price action - you can't learn this in a few months

2. Experience reading orderflow/-book - useless without experience in reading price action

3. Experience in trade management - scale in/out, increasing position size whenever it's possible
(building big positions during a trade) = pyramiding

4. THE MOST IMPORTANT THING : Trading fearless!
This is the key to trade successfull. If you feel pain or rage when a stoploss event happens then you have
to decrease size or change the instrument that you trade until you feel nothing.
For me personally this was the hardest thing that I have learn. If you don't have this feeling of fear of loosing money trading becomes much easier. But it's not easy to get this confidence and it has much to do with experience.

You see all these things are based on experience and need a lot of time to learn. This is why so many people loosing day by day and exit this business very shortly. You can't buy experience.

Reply With Quote
The following 6 users say Thank You to Warren B. for this post:
 
(login for full post details)
  #6 (permalink)
Toronto
 
Experience: Intermediate
Platform: ninjatrader
 
alex123's Avatar
 
Posts: 266 since Aug 2009
Thanks: 165 given, 133 received

I believe experience is the most important thing, it can cover all other factors, the only way we can buy experience is our money and time, but who can afford to buy, who will win at last.




Warren B. View Post
Hi,

I totally agree with the most what has written before.

For me my edge is based on:

1. Experience reading price action - you can't learn this in a few months

2. Experience reading orderflow/-book - useless without experience in reading price action

3. Experience in trade management - scale in/out, increasing position size whenever it's possible
(building big positions during a trade) = pyramiding

4. THE MOST IMPORTANT THING : Trading fearless!
This is the key to trade successfull. If you feel pain or rage when a stoploss event happens then you have
to decrease size or change the instrument that you trade until you feel nothing.
For me personally this was the hardest thing that I have learn. If you don't have this feeling of fear of loosing money trading becomes much easier. But it's not easy to get this confidence and it has much to do with experience.

You see all these things are based on experience and need a lot of time to learn. This is why so many people loosing day by day and exit this business very shortly. You can't buy experience.


Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to alex123 for this post:
 
(login for full post details)
  #7 (permalink)
Italy - Roma
 
Experience: Intermediate
Platform: Ninja + proprietary
Broker: IB
Trading: Index futures, Forex, Stocks
 
jagui's Avatar
 
Posts: 200 since Jul 2010
Thanks: 272 given, 286 received

Experience, experience, experience. When you'll have an edge, you'll know it. It is different for everyone. If I have to summarize it, I would say "know and maximize your strenghts, know and minimize your weaknesses".

And think on your own, don't take anything for granted, verify everything, all beliefs have to be personal and inner owned.

About mechanical systems, I believe they simply don't exist. Even a 100% mechanical system is discretionary, because someone has to discretionally build the rules, and discretionally decide when to trade the system and when not.

Regarding entries and exits, I believe they're equally important. I see trades in risk/reward terms, the entry define the risk, the exit define the reward, given the risk (sort of bayesian probability).

Reply With Quote
The following 2 users say Thank You to jagui for this post:
 
(login for full post details)
  #8 (permalink)
Near the BEuTiFULL Horse Shoe
 
Experience: Beginner
Platform: NinjaTrader
Broker: MBTrading Dukascopy ZenFire
Trading: $EURUSD when it is trending
 
Trader.Jon's Avatar
 
Posts: 500 since Jul 2009
Thanks: 401 given, 183 received


jagui View Post
Experience, experience, experience. ... the entry define the risk, the exit define the reward, given the risk (sort of bayesian probability).

Lets not forget all the wondeful networks involved, neural and otherwise!!!

Reply With Quote
 
(login for full post details)
  #9 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


Big Mike View Post
To me, I define my edge primarily by things other than an entry signal. It seems that majority of people tend to define their edge as a signal, and here I am defining it by pretty much everything but.

...And I also want to say that entries really don't mean much, yet everyone puts all their focus on entries. Exits are what matters But truly, I think that the experience to know when to trade, when not to trade, and then the discipline to be slow and steady, consistent, and not fly off the handle or go on tilt because of a bad trade or day, those are what determine your edge in the market.

Mike


Mike, a bit of contradiction in your statement, you wrote: "I define my edge primarily by things other than an entry signal" and then you add "But truly, I think that the experience to know when to trade, when not to trade..."

The "when to trade or not" as a lot to do with entry unless i missed something

If you enter at the worse possible place (ex. at the end of a move) then no matter how good your reading skill is or your money management or discipline the end result will be a definitive lost. So certainly your entry point has a lot to do with your overall score and you should determine your entry with circumspection.

To me, i only care about my entry as it's so closely related to my risk. I do not predict so i leave the reward out of the picture most of the time even though i may anticipate the final destination because of my experience. I can only estimate my reward at the end of the week as i have a track record, i could say this week i achieved a 3:1 risk/reward ratio but before any trade i never try to predict where price will end its move. In other words, i never think in terms of risk:reward but rather in terms of risk given the developing market structure of the current session.

Reply With Quote
The following 2 users say Thank You to trendisyourfriend for this post:
 
(login for full post details)
  #10 (permalink)
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: My own custom solution
Trading: Emini Futures
 
Big Mike's Avatar
 
Posts: 49,398 since Jun 2009
Thanks: 32,062 given, 96,675 received



trendisyourfriend View Post
Mike, a bit of contradiction in your statement, you wrote: "I define my edge primarily by things other than an entry signal" and then you add "But truly, I think that the experience to know when to trade, when not to trade..."

The "when to trade or not" as a lot to do with entry unless i missed something

What I meant by when to trade/not to trade is basically to look for good risk/reward trades, not take every setup, and avoid chop.


Quoting 
If you enter at the worse possible place (ex. at the end of a move) then no matter how good your reading skill is or your money management or discipline the end result will be a definitive lost. So certainly your entry point has a lot to do with your overall score and you should determine your entry with circumspection.

So? Just because it's a loss doesn't really mean much. Unless you have somehow managed to pick the worst possible entry the majority of time. If you have a method you've researched and analyzed, the reverse should be true.

I think entry point has relatively little to do with it, it's all about your exit.


Quoting 
To me, i only care about my entry as it's so closely related to my risk. I do not predict so i leave the reward out of the picture most of the time even though i may anticipate the final destination because of my experience. I can only estimate my reward at the end of the week as i have a track record, i could say this week i achieved a 3:1 risk/reward ratio but before any trade i never try to predict where price will end its move. In other words, i never think in terms of risk:reward but rather in terms of risk given the developing market structure of the current session.

If you are entering trades without knowing the potential reward, ie -- you have no targets based on your market experience -- then you can't make sound decisions for measuring the risk/reward of the trade itself. How do you know if you should even be in the trade at all if you don't know if the risk/reward is good?

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/
Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal Reply With Quote
The following 3 users say Thank You to Big Mike for this post:
 
(login for full post details)
  #11 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


Big Mike View Post
If you are entering trades without knowing the potential reward, ie -- you have no targets based on your market experience -- then you can't make sound decisions for measuring the risk/reward of the trade itself. How do you know if you should even be in the trade at all if you don't know if the risk/reward is good?

Mike

I understand the concept of risk/reward and what you mean by "knowing the potential reward" but i never contemplate the reward aspect as a reason to take a trade. As you wrote the reward is just a potentiality or a projection in the future. Price action follows a structure, that's why we can win at this game. It's not completely random all of the time. I try to enter when price becomes less random so to speak and i never think about the reward aspect until i get there. When i am in a trade i just think about managing it. That's subtil but it can make a big difference in the approach.

Reply With Quote
 
(login for full post details)
  #12 (permalink)
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: My own custom solution
Trading: Emini Futures
 
Big Mike's Avatar
 
Posts: 49,398 since Jun 2009
Thanks: 32,062 given, 96,675 received


trendisyourfriend View Post
I understand the concept of risk/reward and what you mean by "knowing the potential reward" but i never contemplate the reward aspect as a reason to take a trade. As you wrote the reward is just a potentiality or a projection in the future. Price action follows a structure, that's why we can win at this game. It's not completely random all of the time. I try to enter when price becomes less random so to speak and i never think about the reward aspect until i get there. When i am in a trade i just think about managing it. That's subtil but it can make a big difference in the approach.

I agree it is not always random.

Are you saying then that you don't care about risk and reward on each individual trade? That doesn't factor in to knowing if you should take or pass on the setup?

Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/
Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #13 (permalink)
New York
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Trading: E-mini S&P 500
 
Posts: 753 since Aug 2010
Thanks: 447 given, 436 received

My trades are always based on O&P Odds & Probability and thus determines my stop loss and my targets.

Cheers
itrade2win

Reply With Quote
 
(login for full post details)
  #14 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


itrade2win View Post
My trades are always based on O&P Odds & Probability and thus determines my stop loss and my targets.

Cheers
itrade2win


Hi itrade2win, I'd be curious to know how you proceed to determine the odds & probability of a trade as basically having the edge means the odds are on your side.

Reply With Quote
 
(login for full post details)
  #15 (permalink)
New York
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Trading: E-mini S&P 500
 
Posts: 753 since Aug 2010
Thanks: 447 given, 436 received


trendisyourfriend View Post
Hi itrade2win, I'd be curious to know how you proceed to determine the odds & probability of a trade as basically having the edge means the odds are on your side.


Sure, I look at several time frame charts in the morning for key levels.

405 min I go back to the most recent hi/lo and look for HVN's and LVN's
135 min same as the 405 chart it just breaks it down into three sessions
10 min, 30 min and 60min charts for gaps, POC's and NPOC's
All sessions charts squeezed together looking for patterns
1 min and 5 min with key levels and vol.

I plot constant lines on a 1 min chart from the levels on the other time frame charts and try to make a case for confluence where several levels match up. The more the merrier, the more confluence the higher the O&P.

I hope this makes sense. You may get more from my journal


cheers
itrade2win

Reply With Quote
The following user says Thank You to itrade2win for this post:
 
(login for full post details)
  #16 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received

itrade2win,

That's interesting and i'll check your journal to further understand your thought process meanwhile you did not really give any details about what makes you believe the odds are on your side when you take a given trade.

As a small retail trader we are not like a Casino owner where the odds are fixed and always on his side. A Casino owner knows the house edge is fixed and no matter his patronage, he always has the advantage over the trades given to his commercial establishment by his customers.

So i repeat my question, how do you know when you take a trade that the odds are biased in your favor ? In other words, you have more than at least 55% chance to succeed on the trade you plan to execute ?

Reply With Quote
 
(login for full post details)
  #17 (permalink)
Sydney
 
Experience: Intermediate
Platform: NinjaTrader
Broker: MBT/IB, NinjatraderBrokerage
Trading: Currency Futures, FX esp. JPYX
 
vincetc's Avatar
 
Posts: 5 since Aug 2009
Thanks: 12 given, 0 received

Experience.......seems to be is the key common ingredient, without which there is no cake.

I boil down my edge into "Belief in my system, Courage to enter, the Conviction to stay the trade....and accept that I am still learning and not blame anyone else or the market for losses"

ps. I don't trade with an anticipated risk/reward either; I happily to accept what the market gives but I do review the RR at the end of the week.

will take whatever the market gives.......gratefully
Reply With Quote
 
(login for full post details)
  #18 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


vincetc View Post
...I boil down my edge into "Belief in my system, Courage to enter, the Conviction to stay the trade....and accept that I am still learning and not blame anyone else or the market for losses"

If that's all we needed, trading would be somewhat easier. Belief in your system will help but it won't give you an edge. I am sure many gamblers have faith in their system but that does not change anything to the house edge. The house edge will still prevail independently of your belief.

Reply With Quote
The following user says Thank You to trendisyourfriend for this post:
 
(login for full post details)
  #19 (permalink)
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
 
Posts: 2,526 since Jun 2009
Thanks: 1,396 given, 2,576 received


trendisyourfriend View Post
Theoretically , having an edge should translate in winning more than losing.

We often hear that trading is 95% psychological and 5% technical. What do you think ? If that would be the case then how come is it so difficult to develop a *winning* mechanical system? After all, a computer is not influenced by emotions. If a computer can psychologically feel 100% up to snuff all of the time then why a cross over of two moving averages is not enough to win over the long term ?

Certainly, to win the game there is more than psychology, there must be other component we need to consider ? I have the feeling that these other components are more physical and technical than anything else. And we often hear that trading is mostly phychological... What a paradoxical theme!

An edge is only a set of variables . Spending a lot of time concerned about your variables you need to see is damaging to your psyche in regards to trading because no "perfect" or even "best" edge exists . Searching for the best edge is a futile endeavour . The psychological end of this applies to how well you can control yourself in regards to trading .

The sucess comes when you can balance self control , intuition ( the when and where on the chart to trade part , which IS critical ) and probabilities . Like a master poker player you just have to play out your hand thats dealt to you , thats it . If you dont get dealt the hand you like , you wait until you do .

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #20 (permalink)
New York
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Trading: E-mini S&P 500
 
Posts: 753 since Aug 2010
Thanks: 447 given, 436 received


trendisyourfriend View Post
itrade2win,

That's interesting and i'll check your journal to further understand your thought process meanwhile you did not really give any details about what makes you believe the odds are on your side when you take a given trade.

As a small retail trader we are not like a Casino owner where the odds are fixed and always on his side. A Casino owner knows the house edge is fixed and no matter his patronage, he always has the advantage over the trades given to his commercial establishment by his customers.

So i repeat my question, how do you know when you take a trade that the odds are biased in your favor ? In other words, you have more than at least 55% chance to succeed on the trade you plan to execute ?

I think I did explain myself very clearly. The more the confluence the higher the O&P. If you're asking for me to give you the winning percentage, I don't have that nor do I really care. In the uncertainty principle anything can happen. I also look at the context of the market.

As a suggestion if you haven't done so already you may want to read "Trading in the Zone" by Mark Douglas. What it sounds like to me is that you're searching for someone to say I have a 90% winning percentage with this setup. Every moment in the market is unique.

An edge is nothing more than an indication of a higher probability of one thing happening over another.

I hope this clears things up for you.

Cheers
itrade2win

Reply With Quote
 
(login for full post details)
  #21 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


itrade2win View Post
An edge is nothing more than an indication of a higher probability of one thing happening over another.

You are getting hot here. Did you know that very few traders know how to find "an indication of a higher probability". Most think in terms of MY edge or HIS/HER edge while there is nothing of that nature. There are only those situations where price is biased and will favor one direction. How you exploit these events is another matter. How you spot them is another too.

Reply With Quote
 
(login for full post details)
  #22 (permalink)
Victoria, Australia
 
Experience: Intermediate
Platform: NT, MT4
Broker: NT
Trading: Bund , ASX 200
 
Linds's Avatar
 
Posts: 409 since Jul 2010
Thanks: 879 given, 514 received

'An edge is nothing more than an indication of a higher probability of one thing happening over another.'

That reminds me of something Douglas said in Trading in the Zone.

It may be semantics but I disagree. That is not an 'edge' as we are discussing. It may well be that there is a higher probability of one thing happening over another thing at some point in time - but for us to have an edge we need to be able to identify those moments and use that to our favour. If we can do that consistently over a series of trades then we have an edge.

That can be done many different ways in trading.

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #23 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received


Linds View Post
'An edge is nothing more than an indication of a higher probability of one thing happening over another.'

That reminds me of something Douglas said in Trading in the Zone.

It may be semantics but I disagree. That is not an 'edge' as we are discussing. It may well be that there is a higher probability of one thing happening over another thing at some point in time - but for us to have an edge we need to be able to identify those moments and use that to our favour. If we can do that consistently over a series of trades then we have an edge.

That can be done many different ways in trading.

I sometimes trade with other traders using a sharing communication tool and many times two traders can trade in opposite direction as they don't follow the same rational and what i find fascinating is that both can win. Not the same amount but both can be profitable for this given trade. You summed up very well.

Reply With Quote
 
(login for full post details)
  #24 (permalink)
Market Wizard
Quebec
 
Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker: AMP/CQG
Trading: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,958 since Oct 2009
Thanks: 3,645 given, 5,088 received

It's always fun to read our prior thoughts or comments. How noob i was in the beginning of this journey. I wanted to add a little something to this thread which i think is relevant for any trader: Do I really want to be a trader given the many obstacles on our path?

Article
https://www.betfair.com.au/hub/winning-losing-cycles/

Reply With Quote
The following 3 users say Thank You to trendisyourfriend for this post:


futures io Trading Community Psychology and Money Management > Trading with an edge - what does it mean to you ?


Last Updated on January 7, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Finding Trading Opportunities Using Profile Charts w/Tradovate

Jan 28
 

Journal Challenge!

February
 

Battlestations!

March
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts