1. Why do you have an edge?
- if it is a value edge then a fair market value is your target
- if you have an momentum edge then a short term factor to detect market slowdown before reversal is your target
- if you have a timing edge then a time measure of edge dissipation is best ( f.e. after x days)
- if you have a reversal edge then protective exit after the reversal has started are a must just to protect for those rare market mishaps of irrational momentum mispricing
(all of this above should be assessed by measurement...ldo oos backtesting)
Anyhow...there is an intrinsic edge in low probability trades just because there is a very low market demand to take them...(tail risk trades) so a lot of small losses and b.e. situations could be a result of you taking those trades and could not be fixed otherwise as taking early exits would put the expectancy in the negative
Quote:
seems like a fish move for sure, hoping hlf goes to 30 in two weeks basically
lol, wp
/thread