Understanding Edge in Trading

An edge in trading is defined as a statistical advantage that indicates a trading strategy can potentially yield profits. While a 1% return is technically considered an edge, it may not be sufficient for most traders to pursue actively. It is crucial to recognize that real profitability requires more significant returns that justify the time and effort involved in trading. Thus, traders are encouraged to focus on strategies that provide a more favorable risk-to-reward ratio and a sustainable edge over time.