3min chapter

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182: How to identify high probability markets - David Steets

Better System Trader

CHAPTER

How Big Must Your Edge Be for You to Be Usable?

When you found an edge in a new strategy, how big must this edge be for you to be usable? Most of the day-to-day edges come from market studies. I have these tables that show me a percentage positive return over a certain time period. And if it's, it should be significantly different from the base rate. If it's a medium term, whether base rate is 60, 65%, it should show at least 70% return probability to be considered.

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