114: How to quickly identify when an edge has gone

Last week we reviewed a technique Kevin Davey shared to measure the effectiveness of entries and exits using something he calls 'the monkey test'.

This week we're going to look at entries and exits from a slightly different angle:

• How can we measure a trading edge after we've entered a trade,
• Is it possible to identify when that edge has disappeared so we can consider exiting the trade rather than overstaying our welcome?

In this episode we're going to review a technique that Dave Bergstrom uses to measure the decay of a trading edge.

We pick up the conversation talking about validating trading strategies for robustness, take a listen!

 

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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.