How Do You Determine the Weight of New Edges Compared to the Base Rate?

David Steets from Systematic Individual Investor joins us to discuss how to map market probabilities and identify high probability markets using "edge stacking" techniques, including:

• The importance of mapping market probabilities,
• How to identify if something really contains an edge,
• Blending return probabilities across buckets to create a probability map,
• Classifying markets over multiple timeframes,
• How to confirm which edges are currently relevant,
• Using both technical and fundamental in models,
• The reliability of edges over time,
• Managing conflicting information and edges,
• Bear market signals, integrating discretion, weighting edges, VIX term structure, “anti-edges” and much more.

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.