Exploring Different Types of Trading Edges

Trading edges can be categorized into four main types: behavioral, informational, analytical, and technical. Behavioral edge stems from human emotions causing irrational actions that deviate prices from their true value, creating opportunities for exploitation. Informational edge involves utilizing non-private information sources, like satellite images to predict store earnings, to gain an advantage. Analytical edge relies on analyzing public data in a way that generates signals providing an advantage. Lastly, technical edge focuses on leveraging technical analysis tools to identify patterns and trends in the market for trading advantage.