Trading Edge

Fundamentals

A statistically validated advantage that produces positive expected returns when applied consistently over many trades. An edge means your winners outweigh your losers over a large sample -- even if you lose more often than you win. Edges come from technical analysis, risk management, and behavioural discipline.

Related Terms

Expectancy

A measure of the average amount you can expect to win or lose per trade: (Win Rate x Avg Win) - (Loss Rate x Avg Loss).

Risk-Reward Ratio

The ratio of potential loss to potential gain on a trade.

Swing Trading

A trading style that aims to capture price swings over 2 to 30 days.

Learn More

The Instruments You'll Trade

Level 1: Foundation · 12 min

Expectancy: Your Edge Quantified

Level 4: Risk & Money Management · 20 min