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Glossary

Edge

An edge is a repeatable advantage that gives a trading method a positive expectancy after costs over a large number of trades.

Having an edge does not mean winning often or winning soon. It means that, across enough trades, the average result in R is above zero after spreads, commissions and slippage. Many methods feel right and have none.

An edge belongs to a specific method under specific conditions. It can sit in a setup, a market, a session or a holding period, and it can fade when conditions change. Your record can show this: the same setup may have a positive expectancy in the morning and a negative one late in the day.

The execution side matters as much as the idea. A method with a real edge can be turned into a loser by oversizing, quick re-entries or abandoning rules. This is why the same trader can have a profitable method and a flat account.

Proof requires a sample. A handful of trades cannot distinguish an edge from luck, and even a hundred can leave wide uncertainty. Treat a new method as a hypothesis, trade it small, and let the record accumulate.

Reflect's starting point is that your edge is probably fine and your behaviour around it is what costs money, which is something your own data can test.

In Trader Reflect

Where your expectancy fades

Reflect looks for the hour or session where your expectancy turns negative, which is how a fading edge appears in a personal record.

See what is inside

Read more

When Your Edge Fades: Reading Your Results by Hour and SessionHow to split your trading record by hour and by session, compare expectancy in R, and turn a real weak spot into one rule tied to the clock.

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Educational content, not financial advice. Trading involves risk of loss.