Improve Your Trading Edge

"I never buy at the bottom and I always sell too soon." 

– Baron Nathaniel de Rothschild

Usain Bolt and Roger Bannister both run fast. The former is a sprinter. The latter ran a mile. Same sport, different disciplines. The equivalency here is that you have a dominant style: either mean reversion or trend following. The best way to sharpen your trading edge is to improve upon your dominant style. The first step is to start with what an optimal strategy would look like and then gradually nudge your style in that direction.

Building a statistically robust trading edge is about taking control back. You cannot control where the market might end up a week or a year from now, but you have complete control over what is going on in your portfolio today. The following chapters are an invitation to think differently about your dominant style and how you could build a better version of your trading edge.

By now, we...