The Edge Trading System

FX,
cheers, no hope, obviously... one of those things you attempt for the good of mankind in the belief that one of us will hack it one day and pass the secret on to the rest.

Soc. Actually I have to disagree on this, it's a bit more complex - there are a good number of little boxes you can classify people in, for lasting success the better you know each individual the better you are able to manipulate them to seeing things your way. 'Training' will only work with those willing to be trained, with respect if I attempted to 'train' my wife as blatantly as suggested I'd experience hopeless failure and a fair degree of discomfort to put it mildly.

The normal process involves me letting her know I need to be left in peace - this broke down on the occasion I mentioned, it is not a normal occurrence. Part of the problem that day was myself - I thought I could see the screen, I thought nothing was happening and that therefore I could afford to talk for a minute of two.... wrong on both counts, and a relatively cheap lesson overall. Divorce, on the other hand, is a very expensive lesson.

Now, time I wasn't here....
 
mmm, now if Reginald Dwight was a trader, do you think he would have an automatic advantage, seeing as how he does'nt have a wife :!: ?
 
DaveJB said:
, with respect if I attempted to 'train' my wife as blatantly as suggested I'd experience hopeless failure and a fair degree of discomfort to put it mildly.
Click to expand...


Wouldn't she respond to actually being responsible second by second trading a mini lot?
 
The Wife Strategy, Does it work ?

SOCRATES said:
About techniques, yes, sorry, here goes.

For example, create a make believe situation.

Sit the lady in front of the screen.

Give her a huge hypothetical responsibility.

For example, cause her to imagine that what is exposed is equivalent to the contents of your home.

Now explain, that if she is right, all is safe, but if she is not, all the furniture, carpets, paintings, all the kitchen stuff, pots and pans, cooker, fridge, dishwasher, and crockery would sort of be taken away by bailliffs. Get her to realistically imagine that.

Now get her to guess three times what prices are going to do.

Make every point worth an item of favourite furniture.

Show her the principle of using a stop to limit possible losses of equivalent items.

Show her the consequence of responsibility in a framework she can relate to and accept and understand.

Now put her through this mincer, and see what happens.

And then, regardless of the outcome, explain all of this requires your undivided attention
"without interruption" and the reasons why.

And now make a point of training her to leave you alone when you are in front of a screen, whether you are running a position or not.

Remind her of the furntiure, or even the car, if necessary, and that will give her a frame of reference to understand it is to do with REAL MONEY and not a screen game.

See how this pans out.

If the message does not land, PERSIST until it DOES.
Click to expand...


Socrates,

I find your wife tackling strategy quite interesting, however I have a question ? What if when you sat her in front of the screen and she has 3 straight wins in a row, not only that but your wife now starts to believe that she could do this better at this and no longer has to listen to your moans asking you to buy her that new diamond ring at her Fav. Jeweller... If you try to convence her that Trading is all about being profitable in the long run, she would probably want to try this and if you insist her not to, she would want to buy her own computer, a laptop and start trading from her pit ! *The kitchen -


Now she wants to be a part of the game.. and interestingly enough she loses interest in everything else (including you?) and wants to trade for a living..this becomes her passion.

Have you heard the saying, some people enjoy trading, better then having sex !

Imagine this, She now takes a long leave from work and starts trading full-time and puts that very same sign on the kitchen door 'Do not disturb with the Red LED'. Who will do the house work and who does the washing thats for wife to decide ? "Oh, Darling.. could you get the kids from school.. I am trying to concentrate with my trading."

A Man is doomed at this point ! Did you have a guaranteed stop loss in your strategy ?

What would YOU do ?
 
It would make sense to employ people to take care of the chores for you.. question of time money , I would have no problem if my wife was called into it, who am I to say no, go for it... you would know what she would likely face and be able to relate to it and even accelerate the process maybe(or no need to interfere darling, 5% a/c gain here, be a love and stick the kettle on) :)



I think there are the odd couple out there who both have trading "in them" dont see any issues with that, must be quite unique/rare...
 
you may be saying one thing and she is understanding another, don't laugh. It can be very serious,
Click to expand...
Sorry if my reply led you to think I wasn't aware of this - yes, it's very common across all groups in fact, not just men v women.... a simple example would be those who understand computers and those who don't - you explain in patient and extensive detail so that you are convinced the non-PC type understands perfectly what you are trying to tell them, and as far as they are concerned you might as well have been barking like a dog for the last 5 minutes.
 
TraderAli said:
Socrates,

I find your wife tackling strategy quite interesting, however I have a question ? What if when you sat her in front of the screen and she has 3 straight wins in a row, not only that but your wife now starts to believe that she could do this better at this and no longer has to listen to your moans asking you to buy her that new diamond ring at her Fav. Jeweller... If you try to convence her that Trading is all about being profitable in the long run, she would probably want to try this and if you insist her not to, she would want to buy her own computer, a laptop and start trading from her pit ! *The kitchen -


Now she wants to be a part of the game.. and interestingly enough she loses interest in everything else (including you?) and wants to trade for a living..this becomes her passion.

Have you heard the saying, some people enjoy trading, better then having sex !

Imagine this, She now takes a long leave from work and starts trading full-time and puts that very same sign on the kitchen door 'Do not disturb with the Red LED'. Who will do the house work and who does the washing thats for wife to decide ? "Oh, Darling.. could you get the kids from school.. I am trying to concentrate with my trading."

A Man is doomed at this point ! Did you have a guaranteed stop loss in your strategy ?

What would YOU do ?
Click to expand...
Sorry, I had typed a lengthy reply and pressed a wrong button and it vapourised !:eek:

So I will start again at the beginning in reply to your question, here goes...

First of all I will tell you that as a consequence of having in the past trained a lot of people I know now, and I realise, with hindsight, that a lot of people of both sexes are just not cut out for this profession.

I want you to understand that this is not demeaning or critical at all. It happens that first impressions are not a relliable guide to assessing who ultimately has the "right stuff" and who has not.

Some people are obviously unfit and it can be seen at a glance, others succeed in being sly and in hiding their inabilities until the markets put them to the test, and then all the cracks appear, all at once. And then there are the diligent, quiet, confident and disciplined ones who are the ones that make the finishing line like the story of the tortoise and the hare.

So not everyone is the same.

Not all traders are the same. But every trader has a need for a basic environmental framework within which to be able to operate successfully as a prerequisite.

This environmental framework includes peace and quiet without interruption, unjustified interruption, that is.

Let us begin at the beginning.

There is such a thing as beginner's luck. But beginner's luck cannot last in an ongoing scenario within a theatre such as this, which you could compare to a relentless and merciless unending war for profits in which knowledge, skill and self governance of the highest order are crucial, to such an extent as to which the market, and trading it effectively, imposes on all of us.That is clear.

What happens is that beginner's luck is very dangerous.

It causes the victim to become complacent.

The object of the excercise is to ERADICATE all this complaceny.

The trader, who is hands on RECOGNISES the danger of complacency.

The spouse, who is not hands on is not necessarily AWARE of anything.

She has to be made AWARE so that her PERSPECTIVE lines up with and is HARMONIOUS to the perspective of the trader and not DISHARMONIOUS, is what I am saying.

Therefore a scenario has to be created to bring the spouse to a FRAMEWORK OF REALITY and not a FRAMEWORK OF COMPLACENCY AS A RESULT OF NOT BEING AWARE AND NOT BEING MADE AWARE, do you now understand ?

Not making the spouse AWARE is a DERELICTION OF RESPONSIBILITY on the part of the trader to both HIM and his SPOUSE.

This is because the trader is in CONTROL of what he is doing, whereas the spouse is an OBSERVER and NOT in CONTROL of anything except HER PRESENCE.

She has to be made aware of CONTROLLING her PRESENCE and the CONSEQUENCE OF HER PRESENCE. It is not for her to come to the conclusion naturally, because SHE is not the trader, she is not pressing the buttons, she is not the one in front of the screen, and she is not making the decisions and having to TAKE RESPONSIBILITY FOR THE DECISIONS MADE.

The STARK REALITY of the weight of responsibility THIS IMPLIES must be made CLEAR in a way that RELATES TO HER IN A MEANINGFUL AND REAL WAY and not just in a casual NON MEANINGFUL WAY, as I have explained in my previous posts, above.

There is nothing better than a GGOD FRIGHT to bring anyone sharply to a framework of REALITY, and at the same time to ABANDON INSTANTANEOUSLY the framework of complacency PREVIOUSLY and INCORRECTLY held up to that point in time.

I am telling you that if the lady is successful at her first three trades in a row, that this is CERTAIN to engender a feeling of complacency and FALSE PREMISE.

This FALSE PREMISE and this unwarranted FEELING OF COMPLCENCY has to be WIPED, in order to make her realise, and in order to make her harmonise with what is being done, and the difficulties, the risks, and the level of undivided attention that effective trading demands.

to be continued.....I am having a phone discussion, back later, sorry.



Right, I am free, I am back now....

In consequence of all the above, what you have to do, is to allow her to ecperience a really good fright.

Get her to repeat the excercise. It is inevitable that sooner or later there will be a losing trade.

THIS is the SHOCK she must EXPERIENCE for her to have a REALITY on it.

Then you will make her realise it is very easy to do the wrong thing, and very easy to clock up losses.

If this does not work, try another method until it DOES WORK.

When finally the significance lands, she will understand not to interrrupt, EVER.
 
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I totally agree with you Socrates buts its sometimes easy said then done.

Too bad I am getting married next year, but not to worry as I have trained my lady already.. Although we don't live together *not legal before marriage in my case* but she knows that I don't like interference in my work and that my business is my passion. The sad thing is that she does'nt know I do this business sitting in front of my laptop all day long..

Hopefully my trading will carry on as peaceful as it is now. GoodLuck to all with their wives :)
 
Like for the trader there are different ways to trade the market...You, the trainer needs to find what works and what does'nt with your lady. There is no one solution to everybody's problems.
 
Going back to the original subject, would someone be kind enough to post some charts you have been able to trade using the Edge ? I am interested in Dow and Rus.

Unfortunately I do not have access to the charts for these otherwise I would do my own research.
 
Small problem with that -
a poster would need to remove the mechanism for generating the signals... leaving the indicators on would be giving the system away, and I'd imagine the seller would be onto T2W like the proverbial ton of bricks to have the posts removed. The Russel, showing trades but not why they were made, is on the rightangle website at http://www.rightangletrading.com/

As I've been trying to sort out where my understanding deviated from the official system I'll look to post the occaisonal chart when I'm reasonably sure I'm finding the signals correctly, these will be for the Dow 1 min chart. A signal from Friday's chart is attached - note that a number of days are identified as days to stay out, of which this was one, but the 'raw buy signal' is identified by the purple arrow - it indicates the first green bar after the buy setup appears. Ignore the small blue and red arrows you see on the chart, they're part of a candle pattern recognition routine I wrote to flag a couple of dozen reversal indications and not part of the edge system.
 
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Dow Trades - Friday

DaveJB said:
Small problem with that -
a poster would need to remove the mechanism for generating the signals... leaving the indicators on would be giving the system away, and I'd imagine the seller would be onto T2W like the proverbial ton of bricks to have the posts removed. The Russel, showing trades but not why they were made, is on the rightangle website at http://www.rightangletrading.com/

Thanks for the chart DaveJB.

If you look at the chart attached.. would you not have spotted this divergence using a standard MACD. Did you find any more trades on Friday ?

Ps: The reason I said earlier I did not have access to the charts, I meant I could not use custom settings and other indicators, also can only see the most recent.
Click to expand...
 

Attachments

  • Friday Dow Divergence.JPG
    Friday Dow Divergence.JPG
    53.4 KB · Views: 354
Hi,
Yes, you would find it via a standard MACD divergence, but 'the edge' comprises a couple of indicators plus specific chart formations for the signals. There's then quite a lot of subsidiary stuff, other indicators you add to inject a degree of discretion with a view to avoiding lower probability trades.... some of which would filter out some of the better trades, from the look of things, but I've not tested that to see what the numbers look like.

The system is fairly simple, and I believe the claims are based on the basic setup signals, which are not (or at least not just) a straightforward MACD v price divergence. The changes to the periods used with indicators will also alter the signals, or at least the timing. Exits are also fairly simply determined.

I did the chart to show what looked like the last signal given, I'm several hours into some work for my advanced higher physics lesson tomorrow morning (it takes me about 4 hrs to produce an hour of material, so I tend to work on this and similar for about 8-9 hrs on Sunday to get the week's work prepared for the class, the workload will be much reduced in future years I should add as I'm posting the notes to the internet for posterity <g>) I'll see if I can mark up a few more signals later....
Dave
 
Here's another from earlier in the day.
I'm still finding it difficult, frankly, to accept the limit set for the price difference allowed between points on the chart... 10 pts on a Dow 1 minute chart is not what I consider a 'slight slant' so it's a bit counter intuitive at times... the short 2 hours from the end to 1 hr from close, from about 10909 down to around 10872 or so would have been a good short signal - the exit actually fired about 876 so you might have stayed in and lost another 3-4 pts possibly, depending on whether you insisted on getting a 'proper' reversal signal or not.

Technically I'd say there was a short signal about 3 hours before this, after the price peaked at 10940, but the signal (later, at about 10932) is one I am uncomfortable with. The day appears to kick off with a short signal about 20 mins in, entered somewhere near 10912 probably (I'm trying to estimate where you'd actually get in, rather than just reading a convenient bar open) and then the chart just goes sideways before breaking upwards and you'd close (probably) about flat after a very early exit I'd think, if you strictly followed the exit ideas.

Apologies if you didn't see the chart - I uploaded a BMP version and the server apparently rejected it, here's a JPG instead....
 
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Hopefully my trading will carry on as peaceful as it is now. GoodLuck to all with their wives :)[/QUOTE]

Ali, basic rule of thumb: Females generally are gung-ho about their man's profession when said profession procures lots of green cabbage and not a minute before. As I haven't made the switch yet from current profession to futures trader (nor am I earning a living from the latter), my wife is only tokenly interested ("oh, fractals and chaos theory are interesting dear. Now, what do you want for supper??") Can't say I blame her one bit.
 
I have also created a Yahoo group that will serve as a repository of the best trading stuff I have collected over many years. I have this stuff stashed on 4 computers the oldest of which still uses Windows 3.1 (yep, that old, over 10 years) and will be sharing it with the group systematically.

The group is located at http://finance.groups.yahoo.com/group/trading_treasure_trove/.

There is nothing particularly non-standard or revelatory about the Edge method and what the non-standard values of the parameters of MACD or stochastics produce can be obtained by standard values of parameters of some other oscillators. My biggest problem with this or any other method of this kind is that it produces too many signals per day. I am a selective trader and I know for a fact that it pays off to limit your trading to 2-4 trades a day instead of 6-10. But that's just me..
 
Wally

Very interesting Wally. You being one of the biggest slammers of The Edge and other vendors now going into business and selling your system for $500!! And your site has a "Sham Alert" so you can easily slam other systems while promoting your own. What a unique business plan.
 
I stopped looking 15 pages in - any chance of a page ref JSP to make trawling all 120 or so a bit simpler?
Certainly not a long way off the basic idea from the snippets in the early posts, I really would be curious to compare what has been posted there and the 'official' version.
Dave
 
Babu said:
Very interesting Wally. You being one of the biggest slammers of The Edge and other vendors now going into business and selling your system for $500!! And your site has a "Sham Alert" so you can easily slam other systems while promoting your own. What a unique business plan.
Click to expand...

My systems are based on my original work, not on the work that has been in the public domain and if I have borrowed something from others (see Georgetta I method, for instance) I do admit it publicly and I do offer this stuff only as a free bonus. They also have a track record. I too could be selling the work of others considering that I have seen it all (I have been longer in this business than most on this board or others). If you can't tell the difference between an honest business and the one that is based on hype and selling the stuff that others had contributed for free then that speaks quite clearly about your ethical standards.

Yes, I do understand why you are so pissed off about my Sham Alert. You know very well that your kind of business is not going to benefit from that. But why should I care about it?
 
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