I'm very curious what trading "at the edge" or "at an edge" means? I understand the term "edge" as a probabilistic advantage, but sometimes the way it's often used, syntactically, in the lectures sounds more like a physical boundary of sorts. Seeking clarity.
Thanks
"At the edge", "At an edge", etc.
Re: "At the edge", "At an edge", etc.
Differentiation between the word edge vs the phrase "at the right edge" or right hand side of the data without knowing what comes next.
Trading with an "edge" means that there is a positive probability of certain events leading to a net positive outcome - more money in the bank in trading. Not on this trade, but over a series of similar trades. There are "patterns", or essentially contextual situations where probability is not 50/50. In fact, it is possible to win with only 40% probability, but it then requires a 2x risk to reward (or greater). With scalping systems the risk reward may be 1:1 or smaller, and smaller requires recognize the higher probability situation.
So trading with an edge, refers to a net positive probabalistic outcome, whereas trading "at the edge" is feeling comfortable with taking a trade without knowing what comes next because sufficient experience has been built (context knowledge) so that a trade, when taken, is reliably known to yield a positive result over a series of similar trades, whether the next bar is either to your favor or against.
Hopefully helpful and good trades to you!
Trading with an "edge" means that there is a positive probability of certain events leading to a net positive outcome - more money in the bank in trading. Not on this trade, but over a series of similar trades. There are "patterns", or essentially contextual situations where probability is not 50/50. In fact, it is possible to win with only 40% probability, but it then requires a 2x risk to reward (or greater). With scalping systems the risk reward may be 1:1 or smaller, and smaller requires recognize the higher probability situation.
So trading with an edge, refers to a net positive probabalistic outcome, whereas trading "at the edge" is feeling comfortable with taking a trade without knowing what comes next because sufficient experience has been built (context knowledge) so that a trade, when taken, is reliably known to yield a positive result over a series of similar trades, whether the next bar is either to your favor or against.
Hopefully helpful and good trades to you!
Re: "At the edge", "At an edge", etc.
Not only clears things up, but gives fodder for thought. Thanks again, Eric!