TradersCALM - Trading Edge © "Dedicated to trading with good feelings."                                  All services are free.
	What is a trading edge?     It is a measure of the raw advantage you have, over random, of making profits. Put simply an unweighted edge is the net odds of winning over losing. If your odds of winning are 60%, so your odds of losing are 40%, your un-weighted edge is 20% (60% less 40%).     For the more mathematically inclined your edge is:                       • 2 * p -1, where p is the odds of winning. You called this an un-weighted edge - tell me more.     There are three main types of edge we can readily talk about as traders:            • un-weighted edge as explained above,            • edge weighted by the distributions of amounts won and the amounts lost.            • the 'true edge', after taking account of expenses, trader errors, out-trades. TradersCALM favour the use of a fourth definition of edge, calm adjusted edge.		Welcome Self Assessment Links Inner Tendencies What's New Contact Us CALM Secrets Tip of the Week Risk of Ruin