What is the “edge” you have in the markets?

trader111 · #21 14th March 2008, 05:58 PM

Speculation and conceptual understanding all sound very good but when it comes to daytrading professionally day in and day out one needs a system of lucid rules as well as adaptability and above that a strategy.
(note the difference b/w strategy and tactics. the devil lies in the details

)

when NYSE turned hybrid a year back many daytraders who have been making money consistently for 2 yrs. and took pride in calling themselves "tape readers" were blown out like anything. A funny example is the prop firm indiawebtrade(http://www.webtradeindia.com/public/) in delhi ran out of business and forcefully shut down.

trader111 · #22 14th March 2008, 06:09 PM

Quote:

Originally Posted by hari09omkar

Dear trader111,
u r losing 17% of profits due to slippage?? Why don't u try Ninjatrader?
I read it in a book where the trader-author wrote that he was using it for automated order executions and the cancellations.Ignore the post if already used it.
http://www.ninjatrader.com/webnew/fu...tedtrading.htm

well, i used the term slippage. but that includes missed oppurtunities cost as well.
See for eg. I hit a usual size of 1000 shares short for JPM to catch 40 cents. If I miss the price by 5 cents I might hit 700 shares as 5 cent below the risk/reward will change. Similarly when I add size to an existing trade. And it will get still awful if I am caught on the wrong side.

There is still more to that. The transaction cost is helluva different if u buy by bidding compared to buying by taking the offer price. All those institutional orders force me to hit market orders and get stuck with the commissions.

I am a pure discretionary trader... think it will take atleast two yrs. to fully code my system.

the trouble is the evolving character of the market (google about adaptive market hypothesis). I guess the effect is not so pronounced on NSE.

masterjee · #23 14th March 2008, 06:15 PM

Leave the market/enter when a predetermined price is crossed. No more explanations, understanding, edge etc. is needed. In fact this is the "edge".

Hedge funds, quants, etc are eating **** right now.

regards

m

trader111 · #24 14th March 2008, 06:17 PM

Quote:

Originally Posted by masterjee

Hedge funds, quants, etc are eating **** right now.

that was ******* funny

beginner_av · #25 14th March 2008, 07:31 PM

Quote:

Originally Posted by masterjee

Leave the market/enter when a predetermined price is crossed. No more explanations, understanding, edge etc. is needed. In fact this is the "edge".

Hedge funds, quants, etc are eating **** right now.

regards

m

do you even know how hedge funds operate? and how they charge members? they dont eat anything other than hefty commissions. there are traders and there are hedge funds. if you believe that all hedge funds will make lot of money, you also believe that ALL traders will make lot of money too!

masterjee · #26 16th March 2008, 09:49 PM

Quote:

Originally Posted by beginner_av

do you even know how hedge funds operate? and how they charge members? they dont eat anything other than hefty commissions. there are traders and there are hedge funds. if you believe that all hedge funds will make lot of money, you also believe that ALL traders will make lot of money too!

....cannot understand your logic or argument.... (maybe later)....
so called hedge funds are doing everthing except hedging.
most of them are chasing momentum..ie directional calls backed by goblygook formulae...which probably their handlers cannot understand

why? real hedging is boring.

regards
m

vsangeeth · #27 16th March 2008, 09:59 PM

mera paas maa hai..that's the only edge i have ..

uasish · #28 16th March 2008, 10:38 PM

Quote:

Originally Posted by vsangeeth

mera paas maa hai..that's the only edge i have ..

I was under the impression this edge was exclusively Mr Big B's perogative.

CreditViolet · #29 16th March 2008, 11:04 PM

Quote:

Originally Posted by masterjee

....cannot understand your logic or argument.... (maybe later)....
so called hedge funds are doing everthing except hedging.
most of them are chasing momentum..ie directional calls backed by goblygook formulae...which probably their handlers cannot understand

why? real hedging is boring.

regards
m

Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity

hari09omkar · #30 17th March 2008, 10:48 AM

Quote:

Originally Posted by uasish

I was under the impression this edge was exclusively Mr Big B's perogative.

And I thought the Ma was Shashi Kapoor's and the Bangla,Building,Car,Bank Balance were Bachchan's.