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- Would you be mad if you had a trading edge?
Would you be mad if you had a trading edge?
Recently, a trader asked me the following question:
“What is an edge in trading?”
When I was asked that question, I thought, “How do I best explain this?”
Well, here’s what I did.
I said, “Well if you think of blackjack, the house has a 2% edge. They don’t really care how they do on a single hand because they know that, over the long run, because of the edge, they will win. So they just worry about dealing the hands the right way because they will accumulate more profits than losses.”
“Now, when it comes to trading, an edge is a strategy that has a positive expected outcome per trade where you don’t really care how you do on a single trade because, over the long run, it will work in your favor.”
Now, does this look like an edge to you?
401 losers, just 392 winners, less than a 50% win rate?
No, it doesn’t.
But what if the winners were larger than the losers? Maybe that could be an edge…
Half the time, we lose $877.43. The other half of the time, we make $1,327.81. Our winners are 1.51 times larger than our losers, yet they still happen half the time.
Which comes out to over $200 per trade.
That’s an edge.
Now, I can make it even more exciting because these trades…
were done 100% fully automated.
My good friend Steven Brooks is unveiling this strategy live this week for the first time ever.
Regards,
— Adam Garcia
P.S. The market waits for no one—equip yourself with an edge today and see the difference it makes.