Originally Posted by Rant
How confident are you that you have an edge?
In poker you can often clearly see your edge when a fish does something incorrect. Trading is not nearly as clear.
Have you read 'Fooled by Randomness'?
This is a very smart question and it is much harder to quantify edge in finance. For certain strategies it is also very hard to get enough data points to separate noise and performance.
The strategies that trade a lot are obviously easier to quantify edge. For strategies where quantifying edge is harder (low turnover, concentrated strategies), you really need to hear the trader work through his/her thought process and make a judgement as to whether he/she has edge. It's not cut and dry like poker.
Yes I've read that book. Very easy read, especially for a poker player.