Edge

A repeatable reason a method should have positive expectancy after costs.

In plain English

An edge is a claim that needs evidence, measured over enough trades to be distinguishable from luck. A method that only works when you feel confident is not an edge.

Example

A method with an expectancy of +0.2R per trade across several hundred recorded trades may have an edge; one with ten trades cannot tell you.

Trading Strategies

See also

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