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!