How to find your edge and profit from it | Forex Factory

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How to find your edge and profit from it

  • #1
  • First Post: Sep 1, 2018 2:28am Sep 1, 2018 2:28am
Finding at edge isn't easy. It will take years of getting to know the market and yourself. Lots of failed tries.
But then one day something will click and you will know.

Other people can't give you an edge or system. It doesn't work like that.
To be successful you have to have a deep understanding of the market as well as your personal limitations.
Trading is Personal, to your individual strengths, your weakness, your tolerances,
This is why off the shelf systems never work! You must make your own!

1. Know the market pair you are trading..
What kinda news makes your pair spike.
What is the average movement for each session? London, Asian, USA
How does your pair act on Fridays just before the weekend?
How does my pair act in summer? How does my pair act around christmas break?
Does your pair have a tendency to move(correlate with) with stock market? Gold? Bonds? DAX? Bunds? Oil?
Under what conditions do you often get the movement of your Pair wrong?
How does your pair react to weekend gaps?
Does your pair start a new session with a spike, or does it take a while to get moving?
What is the size of the average spike?
What price action setups work and at what time of the day do they work best? What time of day do they always fail?
What is the Average size of a candle during your favorite session..
Ect.. ect.. ect...
Get to know your pair better then your girlfriend/wife! Know it so well you can predict it!

2. Know yourself
What kinda draw down am I comfortable with?
What time frame do I win most on?
Am I a scalper, day trader, or swing trader?
Which session Asian, London, or USA do I do my best trading?
What leverage works right for me?
What mistakes do I always make that hurts my account?
What entry setups do I usually get right?
When am I most confident?
When Am i least confident?
Do I trade news well? or do I usually blow it?
How do I trade fridays?
After a loss do I trade worse?
Ect. Ect. Ect.
Know your self, be honest.. Admit your flaws.

Once you know your market, and your strengths and weakness.
3. Zone in on what your good at.. When building your system.
Use your knowledge of your self, and the pair you trade
to find out when you have the edge over the market.
Trade only the sessions your good at.
Avoid things that cause your account pain (NFP DAY for most traders)
Once you know your Edge build your system around it...
Make every trade your own...
Never look to other guru traders for advice on your system or plan (will usually result in a loss)!

PS. This level of trading takes at least 10,000 hours. You simply can't know yourself and a market in only a month!
Its like anything, you must put in the time and practice to get good. You can't just go join
a major league team, you need years of practice to even have a chance. Trading is the same way!
The only system that will work is one designed by and for yourself.
  • #2
  • Sep 1, 2018 2:33am Sep 1, 2018 2:33am
hello i wanna advise regarding my trade can you help me with that please?
  • #3
  • Sep 1, 2018 3:38am Sep 1, 2018 3:38am
great topic ,, yes you said a lot of right things , and the most one study pair you want to trade it not trade all pairs with the same way because every pair need to understand it before invest your money in it,
  • #4
  • Sep 1, 2018 4:45am Sep 1, 2018 4:45am
Quoting JsCave
great topic ,, yes you said a lot of right things , and the most one study pair you want to trade it not trade all pairs with the same way because every pair need to understand it before invest your money in it,
Yes, trading with maximum trading pairs is not a great idea! New traders need to start with only 2-3 trading pairs; then gradually need to add trading pairs according to demo trading performance: But, not quickly.
  • #5
  • Sep 1, 2018 8:30am Sep 1, 2018 8:30am
Quoting MariaEduard
{quote} Yes, trading with maximum trading pairs is not a great idea! New traders need to start with only 2-3 trading pairs; then gradually need to add trading pairs according to demo trading performance: But, not quickly.
yes i get that recently but in hard way, i discovered some strategies can work well on pair like Eur/Usd but not on other pairs etc , that's was important lesson
  • #6
  • Sep 1, 2018 9:35am Sep 1, 2018 9:35am
I agree with a number of the points and disagree with others. I will mostly highlight the points I disagree with here.

Quote: Other people can't give you an edge or system. It doesn't work like that.
Yes they can. It may not be what you like to do or you may not see the benefits of their edge or system but yes they can work. I'd say, just think maybe....maybe I should look into this.

Quote: To be successful you have to have a deep understanding of the market
Yes, I guess it is helpful but not necessarily correct. Suppose there is an indicator that gives you a tiny edge. Suppose you know some MM. These 2 may just be enough to get you by. No, you don't need a deep understanding of the market. In fact, sometimes putting on the blinders and focusing on the tiny edge you have is much more advisable. It maybe contrary to common belief but TMI about the market can 1- cause confusion. 2- Cause anxiety 3- Can paralyze you and rob you of logic. 4- Can miss you opportunities. 5- Can redirect you weren't panning to go to.....and on and on...different topic.

Quote: This is why off the shelf systems never work! You must make your own!
Disagree. Quite a few off the shelf systems work. You can't claim if you are looking for something, you shouldn't turn every stone and look under it for what you are looking for. It's like saying make your own stone and look under it only to find what you are looking for.

Quote: 1. Know the market pair you are trading..
yes and no. At the beginning, it is okay to hone in on one pair and study it. Then do same for another etc. But remember, one pair doesn't move on it's own in a vacuum. Stating that one should study and trade only one pair is like denying that correlation in Forex exists. After studying a few pairs, it is best advised to move to the next phase and see how they relate to each other and how to benefit from this relationship. Those are good questions under the heading but they apply to all pairs.

Quote: What time frame do I win most on?
That's like backing yourself into an exclusive corner. a time frame is only a fractal of many larger or smaller fractals. There is no time frame one wins most in. It maybe system dependent somewhat but you maybe surprised how fluent that can be. One needs to roam around in all time frames even simultaneously.

Quote: Am I a scalper, day trader, or swing trader?
You should be all of those.

Quote: Never look to other guru traders for advice on your system or plan (will usually result in a loss)!
So, we shouldn't accept your advice then? It is good to read and ponder the advice of guru traders for advice on your system or plan. After a while you will be able to decipher for yourself what is true and what is a regurgitation of a semi red article. Besides, it's entertaining to see where other traders are at and how they see things. You don't have to follow everything blindly, just read, think about it and adopt what makes sense and discard others. I do agree to not follow traders' advice on the forum when there a spike and they are showing off they have jumped on the bandwagon. In that case, yes, read, look at charts and feel the excitement and ecstasy of winning or the anguish from the rare few who decry their SL's were hit because the price came close to the SL but never touched it and it was proof that the broker stop hunted them. I'd just say keep a saltshaker by your platform and refill often.

Quote: Make every trade your own...
Huh? I sometimes makes hundreds of trades. I don't brand them with my insignia and parade them around as the prodigy of my making. It was just a choice that looked good at that one fleeting moment but who knows the future even as close as the next moment? Yes some of them dogs. Others I have to rescue and resuscitate. Some I bury and move on. As soon as one makes a trade or their execution assistant (EA) makes the trade, it is their own whether they want it or not. That point about making every trade your own sounds poetic tho.

Quote: PS. This level of trading takes at least 10,000 hours. You simply can't know yourself and a market in only a month!
I don't mean to be a stickler but assuming Forex runs 312 days or so a year and if staring at Forex movements was a full time 8 hour/day job, it would take a trader 4 years of work to become so proficient at trading that they can kiss their real job goodbye and trade Forex full time. I get your point but I say it's a life time of 6X8X52 effort until you in your mind can tell you that you are there.

That's all for now but good enough.
  • #7
  • Sep 3, 2018 12:23am Sep 3, 2018 12:23am
Quoting bloodpoodle
Finding at edge isn't easy. It will take years of getting to know the market and yourself. Lots of failed tries. But then one day something will click and you will know. Other people can't give you an edge or system. It doesn't work like that. To be successful you have to have a deep understanding of the market as well as your personal limitations. Trading is Personal, to your individual strengths, your weakness, your tolerances, This is why off the shelf systems never work! You must make your own! 1. Know the market pair you are trading.. What...
I always tell people, after a couple of years in the market finding an edge isn't the problem. Two traders trading the same edge will have two completely different results. One of them can even blow himself up with a successful approach.
When you see it, BET big.
  • #8
  • Sep 3, 2018 12:53am Sep 3, 2018 12:53am
Quoting Rennaissance
{quote} I always tell people, after a couple of years in the market finding an edge isn't the problem. Two traders trading the same edge will have two completely different results. One of them can even blow himself up with a successful approach.

If you had learnt your psychology first , you would have saved years of your life , in your first attempt.

Secondly if you listened to the wise man , and fully automated , you would save yourself a lot of time.

https://www.forexfactory.com/showthread.php?t=809399

https://www.forexfactory.com/showthr...0#post11434400

This is why I say you have no edge , if you can not execute it and most traders can not execute it and don't have one. I tell people to learn psychology first.

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  • #9
  • Sep 3, 2018 12:58am Sep 3, 2018 12:58am
I hear all the time trade divergence it has a high rate of success on a higher say 4 hr plus time frame - maybe if someone finds an edge in that it might help them?
  • #10
  • Sep 3, 2018 1:05am Sep 3, 2018 1:05am
Quoting dean1star
I hear all the time trade divergence it has a high rate of success on a higher say 4 hr plus time frame - maybe if someone finds an edge in that it might help them?

There is no edge in higher time frame, unless you have a instrument behavior that responds to it consistently and there is price confirmation.
  • #11
  • Sep 3, 2018 1:14am Sep 3, 2018 1:14am
A retail trader's most important edge is knowing the instrument price drivers, instrument behavior patterns and correlations , this takes at least a year of screen time.

A retail trader has to look for and find the edges in the instrument.
  • #12
  • Sep 3, 2018 5:00am Sep 3, 2018 5:00am
OutThere.. You can disagree with me all day.. your a New member with 14 posts.. So I didn't waste my time reading a thing you wrote.

Part of being a good trader is knowing when not to waste your time..
The only system that will work is one designed by and for yourself.
  • #13
  • Sep 3, 2018 5:29am Sep 3, 2018 5:29am
I don't use indicators, pivots, fibs, wave counting, trendiness, channels.
I never could find an edge in such things. (not saying other people don't) I can only speak for myself.

I just look at price structure, Spikes, grinds (up or down) and sideways flat. (I've spent years studying spikes, grinds, and flat consolidations)
I also use support and resistance. But only in times I feel i have an edge do I trade it.. I do not take every support and resistance I see.
The time of day has to be right, The price structure has to be right..
When the stars Align, I know I have the edge... then i trade.
The only system that will work is one designed by and for yourself.
  • #14
  • Sep 3, 2018 6:34am Sep 3, 2018 6:34am
I just put the edge logic in my indicator , so it reads the stars and gives circle images, then my eas execute this edge , which most traders can't do.

I don't need to do anything at all or trade , it is done for me, that is a repeatable edge year after year.
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  • #15
  • Sep 3, 2018 2:20pm Sep 3, 2018 2:20pm
Practising what you preach! The edge has to be personal. It is primarily what works for the individual trader for consistent and sustainable trading success.

KP

Quoting bloodpoodle
I don't use indicators, pivots, fibs, wave counting, trendiness, channels. I never could find an edge in such things. (not saying other people don't) I can only speak for myself. I just look at price structure, Spikes, grinds (up or down) and sideways flat. (I've spent years studying spikes, grinds, and flat consolidations) I also use support and resistance. But only in times I feel i have an edge do I trade it.. I do not take every support and resistance I see. The time of day has to be right, The price structure has to be right.. When the stars...
Do your homework, follow the footprints of smart money
  • #16
  • Sep 3, 2018 3:13pm Sep 3, 2018 3:13pm
Quoting KeenPips
Practising what you preach! The edge has to be personal. It is primarily what works for the individual trader for consistent and sustainable trading success. KP {quote}

If the edge is personal , I would not be able to code it into EAS.It is objective , not subjective.
  • #17
  • Sep 3, 2018 3:32pm Sep 3, 2018 3:32pm
Hi, mate. Imho, you cant't make an edge into an EA.

Trade safe and prosper.

KP

Quoting loozers
{quote} If the edge is personal , I would not be able to code it into EAS.It is objective , not subjective.
Do your homework, follow the footprints of smart money
  • #18
  • Sep 3, 2018 5:51pm Sep 3, 2018 5:51pm
Quoting OutThere
I agree with a number of the points and disagree with others. I will mostly highlight the points I disagree with here. Quote: Other people can't give you an edge or system. It doesn't work like that. Yes they can. It may not be what you like to do or you may not see the benefits of their edge or system but yes they can work. I'd say, just think maybe....maybe I should look into this. Quote: To be successful you have to have a deep understanding of the market Yes, I guess it is helpful but not necessarily correct. Suppose there is an indicator that...
Great point except 10000 hrs. Even 20000hrs won't work if you try to learn from this forum. But it only takes less than an hour if shown the right way. The most important criteria is a trading plan/model Must have a mathematical RRR edge to survive robustness and all market conditions. Without an mathematical advantage it is doomed to fail like in the case of all Eas which invariably will first show a beautiful curve in the take-off stage but will crash before reaching maximum altitude.
BTW Outthere u have not tell me how they let u back so fast. Anyway happy trading and success to you. Hehe
  • #19
  • Sep 4, 2018 12:39am Sep 4, 2018 12:39am
Quoting KeenPips
Hi, mate. Imho, you cant't make an edge into an EA. Trade safe and prosper. KP {quote}

An edge is repeatable , like a spread, so it is programmable.It can be a probabilistic edge like a casino edge, so it can be programmed.

If you don;t know edges , it does not mean they can't be programmed.
  • #20
  • Sep 4, 2018 7:47am Sep 4, 2018 7:47am
If you believe you have an edge but it doesn't give you a competitive advantage in the Forex trading market, then you don't really have an edge imho. I am very clear about my edge but it is personal and not for public consumption.

KP
Do your homework, follow the footprints of smart money
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