Anyone had experience using "The edge Strategy"

[fxmktlgc]

I've purchased it and concur with Paul. To give Bette some credit, she tries hard to help her students. And there are some happy clients.

http://www.trade2win.com/boards/show...ht=edge+system

I wonder if she and other students who do well with the method just have good discretion and lots of experience? They may factor in other things and apply other filters to the trades.

If you want to try a single setup, you could look for other ideas here first:

http://www.trading-naked.com/Setups.htm

Personally, I think trading retracements into a trend is a better single setup approach than divergence. Whatever the setup, though, you'll still need to take certain market factors into consideration: S/R, pivots, news, movement/volatility, active times of the trading day, etc.

John

Originally Posted by paultx

Edge uses a Stochastic and a MACD. You look for simultanious divergance between the indicators and price.

To me, the instructions are not clear. The examples shown of winning trades, many times, do not seem to follow the rules. The author shows charts with winning trades that are not divergant. In an update she calls these "double tops and bottoms". There is no way to recognize a top or bottom until after it has occured.

I have been unable to make money trying to use it. I have attempted paper trading it on the EMINIs.

In an update, the author has suggested another indicator to filter out bad trades which would not apply to FOREX.

To take advantage of the "money back guarentee" you have to trade it for ninety days and show less than 75% winners, using the rules "exactly" as stated.

No one could afford to trade it for ninety days and suffer losses just to get a refund.
I don't know how one could apply the rules "exactly" as the rules are not exact, in my opinion.

[astro]

The main problem with learning from books is that... YOU ARE LEARNING FROM BOOKS!

Did you try to think what would have happened should you have tried to learn to drive from a book?

There's no way that one can learn how to do anything by reading books.
Her theory might be correct but you need her close supervision in order to make sure you do things right.

True, they will always show you the winning trades in their examples. However, you must understand that trading is merely getting more winning trades than losing trades, which means that in some cases the system will work but in others it won't.

[mikejody]

I bought the trading method from Bette and really appreciate how she tries to help. She went so far as downloading a demo platform so that she could help me get the indicators set up correctly. This took her much time, but she did not complain and was always eager to help.

I do think the system would do very well for very experienced/knowledgeable traders.

However, since I am a pilot I compare the system to giving a person a book on aviation, tell him to read it thoroughly, ask me if he has any questions, and then give him the keys to an airplane.

There is a huge difference between understanding "market theory" and being able to apply the theory to practical market trading. I certainly "crashed" using her theory, not at all because the theory is faulty, but because of my inherant lack of trading/experience/understanding. To put it more concise, I simply could not understand how to apply what I read.

I am amazed at the number of "simple systems" there are which state things like, "simply set up a 10-min. EUR/USD using 5SMA and 14SMA, and RSI if you prefer, and when they cross up go long, when they hit the top, cross over to the down, go short. Couldn't be any simpler than that!"

The above is much like me telling a new pilot student, "put the power in, when you reach 60 knots just pull up, when you're ready to land just approach at 60, power off at 50 fleet and flare at 10 feet. Couldn't be any simpler than that."

If I was to write a forex trading system, which I won't because I have never gotten "off the ground" in my trading yet, I would start with teaching a basic concept, then having the student apply it on a chart and make some sample trades with it. Then I would add one more indicator in and help them understand the correlation between the two. Then add any final patterns or indicators and explain the correlation and help them make trades.

Sorry to digress. Again, I do think the Edge is a great trading system, and Bette is extremely helpful. If you know what you are doing, I think it could be a very profitible system for you (if you like counter trading).

Mike

[paultx]

I would like to add one more thought about this system:

It is nothing new. Divergence trading has been around forever. There is nothing unique with this system - no new insights.

I agree with the poster who recommended nqoos' trading naked website. There are a number of trade set ups better than the Edge and they're free.

[qwang]

Paultx, thanks for your comments.
it was mentioned in FAQs of her website that

The Edge has an invaluable indicator that once you are in a trade will help keep you in the trade should a strong trend start to develop

could you pls tell us what kind of indicator is it ? an ADX?

qwang

[birdjaguar]

Counter trend trading is not fundamentally sound using currencies which are known to be the best trending vehicles to trade. It would make more sense to use this kind of strategy on currency pairs that trade in a narrow range or commodities that trade in a range. The described strategy also seems to attempt picking tops and bottoms. This kind of trading is not well suited for currency trading. All the books that I have read discourage this kind of trading. This is what beginners do and one of the reasons they lose the overwhelming majority of the time. It would make more sense to try to get in rhythm with the trend and trade retracements as has already been stated. Also, breakouts work well if a particular pair has been range bound. Also, if you learn to get in rhythm with the trend, you are more likely to get a feel for when it is over and be able to nail the reversal. I am not being critical of a particular system. I am just sharing time honored trading widsom. Happy trading.

[paultx]

The Edge has an invaluable indicator that once you are in a trade will help keep you in the trade should a strong trend start to develop

could you pls tell us what kind of indicator is it ? an ADX?

Although I don't think her secrets are worth anything, I don't want to give them away.

I will say that the indicator you're speaking of does not do what is claimed.

[fxmktlgc]

I agree with Paul. I don't think it's right to give away something that's copyrighted, so I won't say what it is either. But it's something common and you'd probably be dissapointed to find out what it is.

Originally Posted by paultx

Although I don't think her secrets are worth anything, I don't want to give them away.

I will say that the indicator you're speaking of does not do what is claimed.