An Edge In The Markets
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Thread: An Edge In The Markets

  1. #1
    So I was reading how traders say that with out a border in the market, your betting and the market will sooner or later get your account balance. I don't disagree with that, a casino is a perfect example.

    What is an edge? I think we can all agree it's something you need to your advantage over other market participants.

    A few folks on this forum which do this for a living obviously are winning consistently. Do they have an edge?

    One forum member plays daily pin bars on a chart obvious as can be to everybody. He is consistently profitable.

    Another forum member plays break-outs with only a brief time period chart. He too is consistently profitable.

    We have order flow traders that use news, information available to everybody. They are able to understand the market and its inefficiencies better than many nonetheless.

    What I'm getting at here is.

    I think a lot of edges in the market are not super secret hidden info or things like that. I think most edges in the market just come from being more experienced and educated than the rest.
    (I want to mention I don't think most profitable retail traders are more knowledgeable or experienced than the men at the central banks or Wall Street. I would say we've got an advantage/edge of being minnows at a sea, where we don't need to look for pools of money to select up or dump orders. Then again, the large men create the order flow which moves the markets and they are concerned with where the liquidity is... So you probably should be too )


    Maybe this is obvious to everybody and I'm just thinking out loud, but I feel like too many men and women get discouraged or look for the sacred fail err I mean holy grail their whole trading professions instead of just sitting down and spending some fantastic excellent time grinding out some knowledge from the vast resources available to people.

  2. #2
    I completely agree with you about this. I know a trader that may look at a chart and accurately forecast what will occur 70% of the time before knowing prices. I know I can't do so however, and no holy grail will teach me that, but I am becoming better at being able to spot opportunities as I get more experience.

  3. #3
    Quote Originally Posted by ;
    So I was reading how traders say that with out an edge on the market, your betting and the market will sooner or later have your account balance. I really don't disagree with that, a casino is a perfect example.

    What is an edge? I think we could all agree it is something you have to a advantage over other market participants.

    A couple of people on this forum which do this for a living clearly are winning consistently. Can they have an edge?

    One forum member plays daily snare bars on a chart obvious as can be to everyone. He's consistently profitable.

    Another...
    A number of points for you to think about:There are hundreds and hundreds of systems here how can you know that people are profitable? There are different kind of edges There are so many distinct systems in here, that it is difficult to grasp which one is actually web profitable and which one is not. So, finding those which are profitable over the long-term is a very difficult endeavour.
    It doesn't help that everyone in the forum is asserting that he is earning lots of money with the system from the thread they are engaging in. Some claims may be right, but many are simply bs. If you employ sound statistical analysis, you'll discover that many systems either only have a temporary edge or no edge at all (are not net-profitable).
    Now to my last point, there are different kind of edges. No edge, temporary edge, permanent edge (not totally permanent but stays an edge over decades).
    Many have no edge, some a temporary and a few have a permanent edge. Now finding the edges which are permanent and do not just reduction in time is really hard to do. At that point it is important to comprehend the market and the recurring behavioral patterns by the participants, which isn't going to change until some major changes happen.

    Edges are no super key, but locating them among all the unprofitable systems is a very difficult task, if you do not understand how or where to search.

  4. #4
    What do you consider Sterling? After BOE Minutes.

  5. #5
    I used to believe that using a border is using a super secret concerning the market or any clever indior or some thing that only geniuses could figure it out...

    I understood that a border can be some simple dumb pattern which you could view on any chart at any time frame! You don't have to complie items...
    But don't be fooled,without patientce to wait for the ideal installation and suitable management even the very best edge goes down the drain!
    IMHO

    regards

  6. #6
    I tend to wonder how a lot of time why particular people who have obviously'figured out' this company start sharing information and then escape since'they're asked to stay silent'

    What im finding so far is that likely the greatest assistance to an edge is risk mitigation.

    When the markets in general are uncertain, there's only so much one can do:

    Getting in and Mitigating risk asap. Then allow the market do everything.

    This IMHO is the cornerstone on which to develop/find a fantastic border.

    Mind you im still figuring all this good stuff out haha

    However, I really do have a sense many people interpret'borders' in various ways.

    What exactly is an edge? An entrance? A trade management procedure? A trading style? All this combined? ...

  7. #7
    Quote Originally Posted by ;
    'they've been asked to stay silent'
    Hahaha, so true! Oh no, the NFA will silence me next!

  8. #8
    Quote Originally Posted by ;
    What im finding so much is that likely the greatest assistance to an edge is risk mitigation.

    If the markets generally are uncertain, there's only so much one can do:

    Getting in and Mitigating risk asap. Then allow the market do everything.
    Well stated, Pipalicious.
    Mitigating risk generally is the easy task of putting in a stop loss and not moving it away farther from the price as it'does its thing'. The sad part is that so many newbies move their stops away from price and add to a losing position when they ought to be adding to winning positions and moving stops toward the price to minimise risk. Bear in mind that I'm not advoing shifting your cease into BE arbitrarily, but shifting your halt to a degree where you would not want to be long/short anymore.

  9. #9
    Quote Originally Posted by ;
    Well Stated, Pipalicious.
    Mitigating risk in most cases is the simple task of putting in a stop loss and not moving it away further from the price as it'does its thing'. The sad part is that all these newbies move their stops away from price and add to a losing position when they should be adding to winning positions and moving stops toward the price to minimise risk. Bear in mind that I am not advoing shifting your stop into BE arbitrarily, but shifting your stop to a level at which you wouldn't want to become long/short anymore.
    I believe we're well on the way to attaining the stage that many miss.

    An edge in the market may actually have little to do with after a profitable system. The edge could be adequate self control to let yourself profit. That includes not moving stops, not cutting winning transactions brief and not shutting down trades that have undergone drawdown once they return to BE, just as you're worried about how much it retraced from the entry (you place the stop there for a damn reason, right?) .

    I can see the logical edge in a fantastic many systems posted on FF but with the self discipline, money management and transaction management skills to make a profit from these is a entirely different ask.

    There's a misnomer that not many retail traders may profit from the market. That there must be winners. We will need to know what a small part we play. You will find retail traders with what appear to be massive accounts. Hundreds of thousands of pounds or dollars. Millions in some of the impressive cases. All of the time, retail traders account for just 7-8% of market activity -- these”big” accounts are TINY. Each and every one of us could turn a normal profit and the market are in no major way either imbalanced or inconvenienced by it.

    The vague thing I am making is just since a egy is in the public domain, just because it look too straightforward and just since the promises of others might appear unrealistic, does not mean it isn't a profitable way to trade. The fact is, however, that so few retail traders can give it the time, the effort and the dediion it ought to go from losing money to making money and that's why the characters always appear so piled. It took almost a year until I stopped leaking money and started breaking and then another 3 or 4 months before I started turning everyday profit. This has been with 60 hourweeks, weekly. It requires a lot of time and often a lot of lost money.

    The last thing I'd love to say about this notion of a border is that it seems to indicate a single, identifiable differentiator that gives you an edge over everybody else. It absolutely cannot be that way in most cases. My edge is I learned how to read price action, how to combine the timeframes collectively, how to know SD, SR and determine amounts where price should turn or bounce. Bit by bit, I learnt how to trade to a large level to profit, together with sensible money and trade administration. My next step is to escalate my profits to amounts that I understand are attainable. There is no defined border in a singular type, just a string of skills that if melded together, provide the so called border. The edge can be as straightforward as just hours upon hours of screen time.

    Anyone can do it, even if they need it badly enough.

  10. #10
    How did you manage to get this thread featured on FF's Facebook page?

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