A short YouTube monologue by Kardec Trader (uploaded Jan 13, 2024) asking traders whether they have a genuine edge. The speaker emphasizes the need to define entry/exit criteria, ensure the strategy fits particular market conditions, perform multiple backtests, forward-test results, and confirm tests use adequate sample size before trading live.
Do you have an edge? Before you answer and you jump to say yes I have an edge, I'm going to ask you the following questions. Have you back tested this edge? Does this edge have a criteria for entry? Does it have certain market conditions that fit within this edge or this strategy or playbook, whatever you want to call it? Has it been proven by backtesting once you backtested it has it been forward tested? Now if that has been done for a particular strategy then great, that's phenomenal. Now my second question then comes into did you test it with adequate size? Right. So what I see happening is certain people get into this bubble where they have no strategy and if that's you go back, develop a strategy, have criterias around it, entry criterias, exit criteria, you know, market conditions that need to fit within that setup and then once you back test it and I mean back tested multiple times then forward test it.
